New supermarket watchdog will fine chains
Our saviour has come in the shape of a new supermarket watchdog who will have the power to fine the biggest chains! Their dominance can now be punished and fined if they aren't nice to farmers and suppliers!
The thrilling 'groceries adjudicator' will have the power to name and shame supermarkets and fines will be introduced.
This is all because of a new Groceries Code which came on the back of a Competition Commission report which backed up suppliers' claims that supermarkets were using their power and influence to impose unfair conditions.
Competition Minister Jo Swinson said financial penalties were expected to be applied only in cases of serious breach, with naming and shaming used in most cases: "Where supermarkets are breaking the rules with suppliers and treating them unfairly, the adjudicator will make sure that they are held to account. We have heard the views of the stakeholders who were keen to give the adjudicator a power to fine, and recognise that this change would give the adjudicator more teeth to enforce the Groceries Code."
"We expect fines to be used as a last resort, but the fact that the adjudicator has the power to impose them will send a strong message to retailers that compliance with the code is not optional. I am confident that these changes will mean that the adjudicator is able to ensure fair play in the food supply chain and keep the industry growing."