// The Competition and Markets Authority has designated Amazon as a grocer, which means it must adhere to the Groceries Supply Code of Practice
// The Code prevents retailers from making changes to supply contracts at short notice and requires them to give notice and reasons for terminating a contract
Amazon’s growing grocery business has led the competition and markets authority (CMA) to designate the company a grocery, which mean it must comply with the Groceries Supply Code of Practice.
The Code, which applies to retailers with an annual turnover of more than £1 billion from grocery sales, ensures that they treat their suppliers fairly.
It stops grocers from making changes to supply contracts at short notice and requires an appropriate period of notice if retailers no longer want to use a supplier and provide reasons for ending the contract.
The CMA regularly monitors all UK retailers to ensure they meet the criteria covered by the Code but once a business has been designated a grocery retailer, compliance is actively managed by the independent Groceries Code Adjudicator.
Suppliers with concerns about compliance are able to raise these with the adjudicator directly.
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The CMA outlined that Amazon supplies groceries in the UK through two “wholly owned subsidiaries”, Amazon EU Sarl and Fresh & Wild Limited.
It also operates 15 Amazon Fresh stores in the UK. It joins Ocado, Asda, Co-operative Group, Marks & Spencer, Morrisons, Sainsbury, Tesco, Waitrose, Aldi, Iceland, Lidl, B&M Retail and Home Bargains that must all comply to the grocery code.
CMA senior director, remedies, business and financial analysis Adam Land says: “Households across the UK are increasingly using Amazon to buy food and other essential items.
“Today’s decision to designate Amazon helps to ensure a level playing field for companies active in the groceries sector as people’s buying habits evolve.
“These rules mean that the thousands of companies supplying Amazon with groceries are now protected from potential unfair business practices.
“We’ll continue to keep a close eye on the sector to make sure all major grocery retailers are bound by the same rules.”
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