The CMA designates Amazon as a grocery retailer

No primary category set

To protect suppliers the CMA have designated Amazon.com under the Groceries Market Investigation Order meaning that Amazon and its relevant UK subsidiaries must now comply with the Groceries Supply Code of Practice.

This Code, which applies to retailers with an annual turnover of more than £1 billion from grocery sales, ensures that they treat their suppliers fairly. For example, it restricts firms from making changes to supply contracts at short notice. It 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.

The CMA regularly monitors UK retailers to see if they meet the criteria to be covered by the Code, such as relevant turnover. However, once the CMA has designated a grocery retailer, compliance with the Code is managed by the independent Groceries Code Adjudicator. Any suppliers with concerns about compliance should raise these with the adjudicator directly.

Households across the UK are increasingly using Amazon to buy food and other essential items. Today’s decision to designate Amazon helps to ensure a level playing field for companies active in the groceries sector as people’s buying habits evolve.

These rules mean that the thousands of companies supplying Amazon with groceries are now protected from potential unfair business practices.

We’ll continue to keep a close eye on the sector to make sure all major grocery retailers are bound by the same rules.

– Adam Land, Senior Director, Remedies, Business and Financial Analysis, CMA

RELATED POSTS..

Amazon Fresh launches NEW first-ever Prime Member Deals initiative

Amazon Fresh launches NEW first-ever Prime Member Deals initiative

Referral Fee Changes Amazon Base Reserve policy impacts cashflow Amazon Disbursements held & VAT Liability email Amazon delay FBA Fee changes (and correct errors)

Amazon delay FBA Fee changes (and correct errors)

Retail Media strategies for Amazon Advertising on Prime Day with Umer Paracha

Retail Media strategies for Amazon Advertising on Prime Day with Umer Paracha

£1 billion collective action damages claim against Amazon by UK retailers

£1 billion collective action damages claim against Amazon by UK retailers

Amazon Global Logistics Own Consolidation

Amazon Global Logistics Own Consolidation

ChannelX Guide...

Featured in this article from the ChannelX Guide – companies that can help you grow and manage your business.

Latest

Take a look through a selection of the latest articles on ChannelX

Register for Newsletter

Receive 5 newsletters per week

Gain access to all research

Be notified of upcoming events and webinars