The UK's grocery watchdog is stepping up efforts to ensure fair treatment of suppliers as the sector grapples with increasing costs. The Groceries Code Adjudicator (GCA) has highlighted the importance of robust processes for handling cost price increase (CPI) requests from suppliers to major retailers, emphasising that negotiations must be conducted fairly and transparently. This focus comes as inflation continues to impact businesses across the supply chain, inevitably influencing prices on supermarket shelves.
Retailers are being urged to ensure their buyer training and CPI processes are built around the GCA's '7 Golden Rules', first published in 2022. These rules aim to reduce suppliers' exposure to excessive risks and unexpected costs, which can hinder their ability to invest and innovate. With the volume of CPI requests expected to rise in the coming months, the GCA has confirmed it is engaging with Code Compliance Officers from all 14 designated retailers to embed these fair negotiation principles. While the GCA does not dictate the outcome of price negotiations, it is committed to intervening if unfair practices are identified.
In related news, a targeted investigation launched by the GCA into Amazon.com, Inc. (Amazon) on 20 June 2025, remains ongoing. The investigation is examining whether Amazon breached paragraph 5 of the Groceries Code, which mandates prompt payments to suppliers. The GCA had reasonable grounds to suspect payment delays occurred between 1 March 2022 and 20 June 2025. This probe is focusing on goods receipt and payment processes, the handling of deductions, and the use of deduction settlements in commercial negotiations, with the aim of determining the extent and impact of any breaches.
The GCA has collected evidence from both suppliers and Amazon and is currently analysing this information. The watchdog has reiterated its commitment to protecting supplier confidentiality throughout the investigation. Delays in payment can significantly harm suppliers, exposing them to financial risks and unexpected costs, which can then ripple through the supply chain and potentially affect the availability and price of goods for consumers.
Looking ahead, the GCA's annual conference is scheduled for Tuesday, 29 September 2026. This event will bring together suppliers, retailers, and industry representatives to reflect on the GCA's work and discuss available support for suppliers, including confidential channels for raising concerns. The conference will also feature a detailed analysis of the results from the 2026 annual survey, providing further insights into the state of the grocery sector.