Latest news with #MarkWhite
The Guardian
9 hours ago
- Business
- The Guardian
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.'
Leader Live
9 hours 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
10 hours 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
11 hours 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.
The Sun
11 hours ago
- Business
- The Sun
UK grocery watchdog probes Amazon over alleged supplier payment delays
LONDON: Britain's grocery regulator on Friday launched an investigation into Amazon, probing whether the U.S. retail giant breached rules on timely supplier payments over a three-year period. The Groceries Code Adjudicator (GCA) said it suspected Amazon of violating paragraph 5 of the Groceries Supply Code of Practice, which mandates prompt payment to suppliers. 'The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,' adjudicator Mark White said in a statement. Amazon did not immediately respond to a request for comment. White said he launched the investigation, which will cover the period between Amazon's designation in March 2022 and June 2025, based on evidence received from multiple unnamed sources. The GCA said it would examine the scale and impact of any delays, focusing on Amazon's payment systems, how it handles supplier disputes over deductions, and whether it uses deduction settlements unfairly in commercial negotiations. Last year, the GCA threatened Amazon with a formal investigation if it did not improve its compliance with the Groceries Supply Code of Practice. The code aims to ensure Britain's 14 largest grocery retailers, including market leader Tesco, Sainsbury's , and Marks & Spencer, treat suppliers fairly. The regulator had found in its 2024 annual survey that less than half of respondents directly supplying Amazon believed the U.S. giant 'consistently' or 'mostly' complied with the code. At the time, Amazon said it had made several improvements for grocery suppliers since last year's results, with clearer explanations for cost price increase decisions, minimum periods for de-listing, and the launch of a major upgrade for handling invoice disputes. The GCA can impose financial penalties of up to 1% of a large retailer's UK turnover.
