The CMA has announced that industry rules setting out how retailers should treat their suppliers will now apply to Ocado and B&M as their turnovers have passed £1 billion.
The two retailers will now be bound to the Groceries Code Adjudicator, which governs how retailers treat their suppliers and aims to make sure that they do not abuse their commercial power.
For example, retailers bound by the code cannot make changes to the terms of supply retrospectively and must provide notice of and reasons for no longer using a supplier
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For example, retailers bound by the code cannot make changes to the terms of supply retrospectively and must provide notice of and reasons for no longer using a supplier.
“These rules mean that suppliers are protected from unfair business practices, and retailers can trade with confidence on a level playing field,” CMA head of remedies enforcement Peter Hill said.
“Businesses supplying Ocado and B&M will now also benefit from this protection.”
Other retailers subject to the code are Asda, the Co-op, Marks & Spencer, Morrisons, Sainsbury’s, Tesco, Waitrose, Aldi, Iceland, and Lidl.
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