Government gives go-ahead for establishment of supermarket enforcer

The Government has today given the go-ahead for the establishment of a body to enforce the Groceries Supply Code of Practice (GSCOP).

The GSCOP is due to come into force on 4 February 2010 and was one of the recommendations of the Competition Commission following its inquiry into the grocery sector completed in 2008. The Competition Commission had also recommended the establishment of an ombudsman to monitor and enforce compliance with the GSCOP. The Competition Commission had hoped to secure voluntary undertakings from grocery retailers to establish the ombudsman. However, the Competition Commission was not able to achieve this and the matter was referred to the Department for Business Innovation & Skills (BIS).

BIS has now had opportunity to consider the issue and consult with a number of parties. Whilst it is mindful to avoid placing unnecessary costs on business in the current economic climate, BIS believes that the enforcement of the GSCOP is desirable. BIS wants to ensure that the GSCOP can be independently enforced and that there is the ability to hear anonymous complaints.

BIS is to commence a consultation in February on how best to enforce the GSCOP, who the enforcement body might be (including possibly the OFT) and the powers it could have.

The BIS webpage regarding the Competition Commission's grocery sector inquiry can be found here and the Government response to the Competition Commission's recommendation can be found here.

Please see our previous Law-Now on this issue here.