Latest news with #GroceriesCodeAdjudicator
Globe and Mail
9 hours ago
- Business
- Globe and Mail
The UK Is Investigating Amazon (AMZN) for Not Paying Its Suppliers on Time
E-commerce giant Amazon (AMZN) is being investigated by the UK's grocery regulator, the Groceries Code Adjudicator (GCA), for not paying its suppliers on time. This would violate Article 5 of the UK's Groceries Supply Code of Practice, which says that retailers must pay suppliers 'within a reasonable time' after receiving their invoice. If Amazon is found to have breached the code, it could face a fine of up to 1% of its annual grocery turnover in the UK. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The GCA said that it had been monitoring Amazon's actions after warning the company last year to fix its practices. After reviewing more evidence, the regulator decided to launch a formal investigation focused specifically on Amazon's compliance with the payment timing rule. The GCA is responsible for making sure large grocery retailers treat their suppliers fairly, and this move suggests Amazon hasn't done enough to address previous concerns. While Amazon's grocery operations are smaller in the UK than in other markets, they are still significant. Estimates suggest that Amazon has between 1.6% and 3% of the UK grocery market, compared to Tesco's 29%. Amazon doesn't break out UK grocery sales in its earnings reports, but the Competition and Markets Authority requires companies with over £1 billion in UK grocery turnover to follow the Groceries Code, which implies that Amazon exceeds that threshold. Following news of the investigation, Amazon's stock opened lower on Friday and continued to trade in the red for a third straight session. What Is the Price Target for AMZN Stock? Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 46 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $241.64 implies 15% upside potential from current levels. See more AMZN analyst ratings
Times
a day ago
- Business
- Times
Amazon investigated over breach of code on payments to suppliers
Amazon is being investigated by a government regulator over claims it mistreated suppliers by delaying payments to them. The Groceries Code Adjudicator said it had launched a 'targeted investigation'' because it had 'reasonable grounds to suspect'' the technology and retail giant had breached rules governing fair payment of suppliers. It said it had received 'evidence from a range of sources'. The regulator, which has the power to levy a fine up to 1 per cent of a retailer's UK turnover, said it had also received information about other alleged issues at Amazon. These are understood to include how suppliers are 'de-listed', or dropped, and payments made to Amazon by suppliers. • Amazon to cut jobs as AI takes over white-collar roles The adjudicator regulates the relationship between the UK's largest grocery retailers and their direct suppliers. The Amazon investigation is only the adjudicator's third since the office was established in 2013. Its rules governing payments say that bills must be settled according to the terms of the agreement between supplier and grocer 'and, in any case, within a reasonable time after' the invoice date. The adjudicator said the Amazon investigation will focus on the 'nature, extent and impact of practices which may have resulted in delays in payments including Amazon's receipt of goods and payment processes, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers'. Mark White, the adjudicator, 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 regulator has carried out two investigations, the first into Tesco in 2015 and the second into the Co-op in 2018. It has not used its powers to fine, although these only came into force for breaches after April 2015, so could not be used against Tesco. An Amazon spokeswoman said the company took the rules 'incredibly seriously and we will co-operate fully with the adjudicator as he carries out his investigation'. 'While we are disappointed with this decision, we welcome the opportunity to further demonstrate our ongoing compliance,' she said. The adjudicator governs rules which apply to retailers with UK annual groceries turnover exceeding £1 billion. Its description of groceries includes pet food, toiletries and cleaning and other household products as well as food and drink.
Leader Live
a day ago
- Business
- Leader Live
Grocery watchdog investigates Amazon over late payment to suppliers
The Groceries Code Adjudicator (GCA) said it is looking at whether the US-based online retail giant breached rules over payments. The regulator said this will particularly look at delays in paying its suppliers, deductions in commercial negotiations with suppliers and how it manages supplier concerns over these deductions. It comes almost a year after the GCA told Amazon it must take 'swift and comprehensive action' to improve its compliance with industry rules designed to protect suppliers. The GCA oversees Britain's 14 largest grocery retailers – including Tesco, Sainsbury's and Marks & Spencer – to make sure they treat suppliers fairly. It restricts firms from making changes to supply contracts at short notice and also requires retailers to give an appropriate period of notice if they no longer want to use a supplier, and provide reasons for ending the contract. Rules also prohibit late delays in payments from retailers to their suppliers. 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. 'I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources.' He called on suppliers and to provide evidence about their experiences dealing with Amazon. The GCA added that its has received information about 'other issues at Amazon', but provided no further detail about this. An Amazon spokesman said: 'Amazon takes the Groceries Supply Code of Practice incredibly seriously and we will co-operate fully with the adjudicator as he carries out his investigation. '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 falling year-on-year. 'We will continue to listen and work with our grocery suppliers as we roll out further changes.'
Powys County Times
2 days ago
- Business
- Powys County Times
Grocery watchdog investigates Amazon over late payment to suppliers
The UK grocery watchdog has launched an investigation into Amazon's treatment of suppliers. The Groceries Code Adjudicator (GCA) said it is looking at whether the US-based online retail giant breached rules over payments. The regulator said this will particularly look at delays in paying its suppliers, deductions in commercial negotiations with suppliers and how it manages supplier concerns over these deductions. It comes almost a year after the GCA told Amazon it must take 'swift and comprehensive action' to improve its compliance with industry rules designed to protect suppliers. The GCA oversees Britain's 14 largest grocery retailers – including Tesco, Sainsbury's and Marks & Spencer – to make sure they treat suppliers fairly. It restricts firms from making changes to supply contracts at short notice and also requires retailers to give an appropriate period of notice if they no longer want to use a supplier, and provide reasons for ending the contract. Rules also prohibit late delays in payments from retailers to their suppliers. 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. 'I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources.' He called on suppliers and to provide evidence about their experiences dealing with Amazon. The GCA added that its has received information about 'other issues at Amazon', but provided no further detail about this. An Amazon spokesman said: 'Amazon takes the Groceries Supply Code of Practice incredibly seriously and we will co-operate fully with the adjudicator as he carries out his investigation. '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 falling year-on-year. 'We will continue to listen and work with our grocery suppliers as we roll out further changes.'
The Independent
2 days ago
- Business
- The Independent
Amazon ‘disappointed' by watchdog investigation
The UK 's Groceries Code Adjudicator (GCA) has launched an official investigation into Amazon 's treatment of its suppliers. The probe will specifically examine alleged delays in paying suppliers, deductions made during commercial negotiations, and how Amazon addresses supplier concerns regarding these deductions. This investigation comes almost a year after the GCA issued a stern warning to Amazon, urging the company to improve its compliance with industry regulations. Adjudicator Mark White stated that payment delays can significantly harm suppliers, potentially affecting their ability to invest and innovate. An Amazon spokesperson expressed disappointment with the decision but affirmed full cooperation with the investigation, stating the company has already made significant improvements to its payment practices.
