Statutory code: Groceries ombudsman still debating powers five years on
The role, to enforce the Groceries Supply Code of Practice, was introduced as part of the Groceries (Supply Chain Practices) Market Investigation Order 2009. The code covers disputes between supermarkets and suppliers only. Disputes relating to other areas of the code are arbitrated by the Office of Fair Trading.
The code applies to ten retailers who all have an annual turnover of £1bn or more.
The GCA can conduct arbitration and investigations. There are expected to be two to four investigations a year and if these find a breach of the code the GCA has three options: to issue recommendations against the retailer; to require them to publish details of the breach; and to issue a fine. This last option is reserved for severe or repeated breaches only.
The role, which pays £115,000 pro-rata for a three-day week, went to Christine Tacon, a chartered engineer who had previously run the Co-Op’s farming unit for 11 years. She was appointed on a fixed four-year term but can reapply in 2017.
She was appointed in January 2013 and acted as adjudicator-designate until the bill was given Royal Assent in April of that year. She then published a draft code for consultation in July with final guidance issued and investigation powers started in December.
Even now, five years on from the first publication of the order, Tacon is still waiting for parliamentary assent for her recommendation of a maximum fine. She wants this set at 1% of UK retail turnover (£482m in the case of Tesco).
