08/02/2010 - New code to protect store suppliers
A new code of practice laying out how supermarkets deal with their suppliers has been brought in.
Under the new Grocery Code of Practice (GSCOP), supermarkets will be unable to change supply terms or demand that suppliers pay for promotions such as two-for-one offers.
They will also need to keep written records of deals with suppliers under the new rules.
The GSCOP replaces the Supermarket Code of Practice after numerous complaints from suppliers and farmers of unfair dealings and unreasonable demands from the big supermarket chains.
Officials at the Competition Commission (CC) outlined the new terms in August last year, saying they were needed "to ensure that suppliers do not have costs imposed on them unexpectedly or unfairly by retailers".
The code covers firms with a grocery turnover of more than £1 billion per year.
That includes the big four supermarket groups - Tesco, Asda, Sainsbury's and Morrisons - as well as smaller rivals like Marks & Spencer, Waitrose, Lidl, Iceland and the Co-operative Group.
The previous regulations applied only to the four largest chains.
Copyright © Press Association 2010
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