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Power of the Groceries Code Adjudicator to fine supermarkets

Groceries on a supermarket shelves Print publication

30/01/2015

The draft order empowering the Groceries Code Adjudicator to fine supermarkets has been laid before Parliament.

The order, when in force, will enable the Adjudicator to impose fines on UK supermarkets that have breached the Groceries Supply Code of Practice. Depending on the gravity of the breach, the Adjudicator will be able to impose fines of up to 1 per cent of the offending supermarket’s annual UK turnover.

Since assuming its functions, the Adjudicator has been busy (see our earlier article here) but until now its authority over food retailers has been substantially reduced by the lack of an effective enforcement mechanism. The ability to impose fines will change that. It is anticipated that the order will come into effect on 6 April this year.

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