The Groceries Code Adjudicator (GCA) has said it will not hesitate to investigate Amazon to ensure it treats its suppliers fairly.
The rebuke comes as the GCA published its 2024 annual survey, which found that fewer than half of respondents directly supplying Amazon believe the retail giant “consistently” or “mostly” complied with the Groceries Supply Code of Practice.
The GCA said Amazon must take “swift and comprehensive action” to improve compliance with GSCOP and said it would “not hesitate” to investigate the retailer if necessary.
The code covers the UK’s 14 largest grocery retailers and holds them to account for their treatment of suppliers.
This year’s GSCOP survey also highlighted falling food price inflation, with the number of suppliers requesting at least one cost price increase from a retailer during the period falling to 67%, down from 91% in 2023.
The number of respondents flagging a retailer’s response to a cost price increase as an issue nearly halved, falling from 28% the previous year to just 16% in 2024.
GCA boss Mark White said: “I am encouraged to see improvements in retailers’ treatment of suppliers across a range of issues including the management of cost price increase requests but also resolution of invoice discrepancies and data input errors.
“However, the survey shows clearly that many suppliers do not believe that Amazon is complying with the code. Amazon must ensure suppliers understand the changes it has made since its designation and in response to these survey results, and make any further changes that are needed to ensure code compliance.
“I will not hesitate to launch a formal investigation if appropriate and necessary to ensure Amazon is treating its suppliers fairly and lawfully.
“I encourage suppliers to continue to confidentially tell me about the issues they are facing with Amazon.”
An Amazon spokesman said: “We are very disappointed by these results and we are committed to improving them. Amazon takes the groceries code extremely seriously and we have introduced robust compliance procedures for our suppliers.
“We have made a series of improvements to our grocery supplier experience since last year’s results, with clearer explanations for cost price increase decisions, minimum periods for delisting, and the launch of a major upgrade for handling invoice disputes.
“We will be making further changes, with faster time-frames to resolve more types of financial disputes, as well as strengthened account management support for smaller suppliers.
“There is still more to do. We are committed to working with the Groceries Code Adjudicator, building long-term sustainable relationships with our suppliers, and continuing to create opportunities for suppliers of all sizes to reach millions of customers in the UK and around the world.”
For the first time, c-store specialist Co-op topped the survey for overall code compliance on 98%.
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