UK Grocery Regulator Threatens Amazon with Investigation Over Supplier Treatment

In a stern warning to Amazon, Britain’s grocery regulator has announced the possibility of a formal investigation if the eCommerce giant does not improve its compliance with an industry code designed to protect suppliers. The Groceries Code Adjudicator (GCA) issued the threat on Thursday following findings from its 2024 annual survey, reported Reuters.

The survey revealed that less than half of respondents directly supplying Amazon believed the U.S. giant “consistently” or “mostly” adhered to the Groceries Supply Code of Practice (GSCOP). The Code, applicable to Britain’s 14 largest grocery retailers — including Tesco, Sainsbury’s, and Marks & Spencer — aims to ensure fair treatment of suppliers. Amazon has been subject to the Code since 2022.

The GSCOP restricts firms from making abrupt changes to supply contracts and mandates an appropriate period of notice, along with reasons, if a retailer decides to cease using a supplier. Despite these regulations, Amazon’s compliance score plummeted to 47% from 59% in 2023, leaving it at the bottom of the rankings, 41 percentage points behind Iceland, which scored 88%.

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“We are very disappointed by these results and we are committed to improving them,” an Amazon spokesperson stated, acknowledging the company’s poor performance.

The GCA has directed Amazon to take “swift and comprehensive action” to improve its compliance with the Code. The regulator is currently monitoring Amazon’s efforts and their impact to decide if they are adequate.

“I will not hesitate to launch a formal investigation if appropriate and necessary to ensure Amazon is treating its suppliers fairly and lawfully,” said Mark White, the Groceries Code Adjudicator.

Source: Reuters