Commercial disputes to increase with new supermarket watchdog?

Published on 9 Aug 2010 under category: legal

Commercial disputes could increase as more small food suppliers fight back against supermarkets.

Business secretary Vince Cable has announced plans to create a supermarket regulator to tackle unfair treatment of small suppliers and businesses.
This could mean that more producers and retailers will enter into commercial disputes over payment terms and unfair competition.
However, supermarkets have argued that consumers will be the victims in the battle, as prices will increase due to the additional red tape.
The project was initially proposed by the Competition Commission in 2000.
The Grocery Code Adjudicator will not be able to fine supermarkets, but it will be given the power to publicise retailers that treat suppliers poorly.
Commenting on the announcement, the Association of Convenience Stores' chief executive James Lowman said: "We welcome the Grocery Code Adjudicator as a pro-competitive step that will prevent the worst abuses of buyer power in a market place that is so consolidated that it presents a real risk to consumer interests.
"We need the government to move quickly now."

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