Particle.news

Download on the App Store

Grocery Regulator Launches Probe of Amazon Over Supplier Payment Delays

Adjudicator Mark White has called on suppliers to submit confidential evidence for a targeted probe into Amazon’s compliance with supplier payment rules.

Image
Image
If found responsible, Amazon could face a fine of up to one percent of its annual revenue in the UK

Overview

  • The Groceries Code Adjudicator opened the investigation on June 20 to examine alleged late payments, contract deductions and potential short-notice supply changes by Amazon.
  • The probe follows a July 2024 notice demanding “swift and comprehensive action” after research found suppliers flagged more issues with Amazon than with any other major UK grocery retailer.
  • Mark White warned that payment delays can expose suppliers to excessive financial risks and unexpected costs and urged all direct suppliers to share their experiences confidentially.
  • The GCA, which oversees Britain’s 14 largest grocery retailers, cited reasonable ground under paragraph 5 of the Groceries Supply Code of Practice to launch its targeted inquiry.
  • Regulators have also received reports of other unspecified concerns at Amazon, indicating the investigation may extend beyond payment practices.