Amazon under UK investigation over alleged failure to pay suppliers on time
The UK's grocery industry watchdog has launched an investigation into Amazon over allegations that the retail and technology company is failing to pay its suppliers on time.
The Groceries Code Adjudicator (GCA) said it had 'reasonable grounds' to suspect that Amazon had breached a part of the groceries supply code of practice, which mandates that there should not be delays in payments made to suppliers.
The investigation into Amazon comes almost a year after the GCA told the online retailer it needed to take 'swift and comprehensive action' to improve its compliance with industry rules designed to protect suppliers.
The GCA is responsible for regulating the relationships between the UK's 14 largest grocery retailers – including the biggest supermarkets Tesco and Sainsbury's – and their direct suppliers.
The investigation into Amazon's grocery retail arm is its third since the GCA was established in 2013 after inquiries into Tesco and the Co-op. The watchdog has the power to fine a company up to 1% of turnover if it is found to have broken the groceries code.
The adjudicator, Mark White, said: 'Delays in payment can significantly harm suppliers. The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate.'
The company sells groceries in the UK through its Amazon Fresh branded stores and online retail operation, as well the Whole Foods chain, which it bought in 2017 for $13.7bn (£10.2bn).
Suppliers raised more issues with Amazon than with other retailers, according to a survey for the GCA carried out in 2024.
After the warning to Amazon last July, the GCA said it had monitored the retailer's actions and heard detailed evidence about suppliers' experiences.
The GCA said on Friday it had grounds to suspect Amazon had breached paragraph 5 of the groceries code between 1 March 2022 and 20 June 2025, but would focus its investigations on the period from the start of 2024 to gain the best understanding of Amazon's current practices.
The watchdog is calling on suppliers to send in evidence by 8 August. It added that all responses would remain confidential.
Sign up to Headlines UK
Get the day's headlines and highlights emailed direct to you every morning
after newsletter promotion
The GCA said it had also received information about other issues at Amazon, adding that it would 'not hesitate' to launch further investigations if required.
It has previously reprimanded Tesco over its treatment of suppliers after a year-long investigation but said it was not able to fine the supermarket chain because the alleged offences were committed before the government handed the GCA extra powers in 2015, allowing it to fine companies in 2015. It also investigated Co-op in 2018.
Amazon said it took 'the groceries supply code of practice incredibly seriously' and added that it would 'cooperate fully with the adjudicator'.
The spokesperson said: 'While we are disappointed with this decision, we welcome the opportunity to further demonstrate our ongoing compliance with this particular section of the code.
'We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing year-on-year.'
'We will continue to listen and work with our grocery suppliers as we roll out further changes.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
17 minutes ago
- The Independent
Hugo Boss demands Liverpool pet shop changes name
A pet shop owner received a legal letter from fashion giant Hugo Boss due to the name of his company. Ben McDonald, from Bootle in Merseyside, said his 'whole world collapsed' when he received a letter from the global clothing brand over his shop Boss Pets. The business owner, who set up the online pet health supplies store in February, said the letter sent this month demanded he change the name – even though the word 'boss' is widely used in the area to describe something as really good. Mr McDonald claimed he was told by Hugo Boss to take down his website within 10 days after concerns the companies could be seen as linked were raised. Describing himself as 'just a lad from Bootle', he told the BBC he spent 'every spare penny' on his pet-related products website. The fashion house has previously allegedly targeted small companies and charities who use the word 'boss' in their names. A Hugo Boss spokesperson told the broadcaster: 'We are aware that the English word 'boss' is one that is commonly used.' They continued: 'Nevertheless, it's our responsibility to monitor and protect our brand rights globally and address unclear cases where needed.' They added: 'When we became aware of the registration, we have approached the business owner as the intended registration represents an overlap with our trademarks. 'As an international fashion company, we need to – like any other corporation – take measures to protect our existing trademark rights. These measures apply to both of our brands, BOSS and HUGO.' They explained that the firm 'only approaches third parties where an overlap with our existing trademark rights occurs, and as a matter of principle we always seek for a dialogue in favour of an amicable solution for both sides'. Comedian Joe Lycett legally changed his name to Hugo Boss in 2020 after calling out the luxury company for allegedly costing small businesses, including Swansea brewery company Boss Brewing, 'thousands in legal fees and rebranding'. Mr McDonald's own lawyers have argued that his business is operating in a different sector, namely pet health supplies, and that the term is commonly used – therefore, they say there is no chance of confusion between the two firms. Francis McEntegart said his client does not have a case to answer and accused the designer brand of bullying Mr McDonald. He said: 'My client is a small local business that is just starting out selling pet wellness products, it's not going to interfere with the profits of Hugo Boss in any way.'
The Sun
18 minutes ago
- The Sun
Hard-up households can apply for food vouchers worth up to £500 now – check if you qualify
SELECT UK households will be eligable for free food vouchers worth up to £500. The financial aid is part of the latest round of a Government scheme, and is designed to help hard-up families. 1 The fund will help residents of Ribble Valley who are deemed eligible, with applications now open. This latest round (HSF7) of the Government's Household Support Fund will see thousands of pounds given to those who need it. Ribble Valley Borough Council has received £158,983 to issue to local residents who meet the funding criteria. Households who need financial help and have a combined household income of less than £35,000 per year can apply for a food voucher. These vouchers will range in value from £200 to £500, depending on circumstances. Nicola Hopkins, the council's director of economic development and planning, spoke about the latest round of the iniative, which is designed to help with the rising cost of living. 'This latest round of funding will provide further much-needed support to local vulnerable residents who are most in need of help with the cost of essentials," she said. The scheme will run while funding is available and vouchers will be distributed on a first-come basis. So if you're a resident of Ribble Valley, check now to see if you qualify for this financial assistance. Only one application can be made per household. Priority is being given to new applicants, with households who received a voucher through HSF5 (April 2024-September 2024) only being eligible for HSF7 from October 1. Meanwhile, anyone who received a voucher as part of the HSF6 round (October 2024-March 2025) will not be eligible to apply for this latest round of vouchers. A series of vouchers are available as part of the scheme, depending on your household set-up. Vouchers worth £200 will be alotted to single households, while £300 will be given to households with two or more adults. Household with children, including any person under the age of 19 at the time of the award or a person aged 19 or over who is the subject of a child-related benefit, will receive a voucher worth £500. Cost of living payments: what you need to know HSF was introduced in October 2021 and there have been several rounds of funding since then. In October 2024, the Government announced that HSF would be extended nationwide for a further 12 months, from April 2025. Under HSF6, almost 300 households in Ribble Valley were issued supermarket vouchers totalling nearly £100,000.
BBC News
27 minutes ago
- BBC News
Two hotels and historic inn in Gloucester put on sale for £10m
Three hotels, with a combined asking price of £10m, have been put up for sale in Gloucester city New County Hotel and Central Hotel are both on sale for £4m, while the historic New Inn is priced at £ the listing for the Central Hotel, a pre-planning application has been submitted to the city council, with the possibility of turning it into a 56-bed House in Multiple Occupation (HMO).HMOs see people who are not related sleeping in separate rooms but sharing facilities such as kitchens or bathrooms. The hotels are all owned by the same Gibbon, manager of Gloucester's Business Improvement District (BID) said that the New Inn is a "remarkable historical landmark" and that it was important that the new owners treat it properly."It was built in the 1400s and it took about 20 odd years to complete, but it is the most complete galleried inn in the whole of England," she said."It's quirky. It's got that character. And whoever takes it on, I think they will have to love this place. "It's a prime example of a listed building still in use as a hotel."It's very important that it stays as it is. It is a high class listed building. "Anyone who comes in needs to work closely with the conservation area officer and with Historic England." Cristina Balekjian, director of UK hospitality analytics at CoStar Group, said the properties had been put on the market despite strong local demand."When we look at the sort of performance data for hotels in the Gloucester hotel market, hotels in that market are performing well still," she said."They're still achieving revenue growth. "So that's a positive trend, especially since overall in the UK, the hotel market has been relatively slow this year compared to last year, given the economic uncertainty that we've been going through."
