Consultation on taking forward the establishment of a body to monitor and enforce compliance with the groceries supply code of practice (GSCOP)
Open date: 05 Feb 2010
Closing date: 30 Apr 2010
Response date: 03 Aug 2010
In August 2009, the Competition Commission (CC) recommended that Government took the steps necessary to establish an effective body to monitor and enforce compliance with the groceries supply code of practice (GSCOP) and give it the power to levy penalties on retailers for non compliance with the GSCOP. Government published its response on 13 January accepting the need for an effective body to undertake this role and made a commitment to begin a consultation in February.
Purpose of consultation
The CC in its 2008 report into the supply of groceries in the UK that some large retailers are transferring excessive risk and unexpected costs to suppliers which can reduce innovation and investment in the grocery supply chain and lead to the detriment of consumers.
To address the concerns that it identified, the CC decided to establish a new code of practice (GSCOP). This Code, which entered into force on 4 February 2010, applies to all firms which are active in the sector and have annual retail groceries turnover of £1billion or more. The CC also believed that the code would only be effective if it was monitored by an independent body. The CC failed to get agreement from the grocery retailers to voluntarily set up a monitoring body and has asked Government to intervene. Government is now consulting on taking the recommendation forward.
Areas for consultation
Government accepts that GSCOP compliance needs independent monitoring and enforcement and a mechanism to hear anonymous complaints. However, there are differing views on whether Government creates a new body or whether this can sit within an existing structure. At the same time we need to consider the regulatory burden that this might impose in developing any policy proposals. This consultation is therefore seeking views on:
- What powers the body monitoring and enforcing compliance with the GSCOP should have, in addition to the body being able to hear anonymous complaints.
- Access to the body.
- Who the monitoring and enforcement body could be, including some possible options.
- Should a sanctions regime be introduced and how might it operate alongside any appeals mechanism.
- The funding of the body monitoring and enforcing compliance with the GSCOP.
- This consultation is relevant to large grocery retailers with an annual turnover of £1billion in the UK and those businesses that supply large retailers with grocery produce either directly or through intermediaries. Trade associations and other non Government organisations may also have an interest.
A Welsh version of the executive summary of the government response to this consultation is provided further below.
Download the consultation
Download the government response
