The Groceries Code Adjudicator (GCA) has announced that it is launching a “targeted investigation” into whether Amazon has breached paragraph 5 (No delay in Payments) of the Groceries Supply Code of Practice (GSCOP).
The GCA stated that it has “reasonable grounds” to suspect that the e-commerce giant breached the Code from 1 March 2022 to 20 June 2025, based on evidence from a range of sources.
The investigation will cover the extent to which paragraph 5 of the Code may have been breached; any impact of Amazon’s conduct on suppliers; and the root causes of any issues. In particular, the GCA will focus on the nature, extent and impact of practices which may have resulted in delays in payments, including Amazon’s receipt of goods and payment processes, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers.
The investigation will cover the period between Amazon’s designation (1 March 2022) and 20 June 2025, but will focus on the period since 1 January 2024 in order to have the “fullest understanding of Amazon’s contemporaneous practices”.
The Adjudicator, Mark White, commented: “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. It will allow me to determine whether Amazon has breached paragraph 5 of the Groceries Code and the root cause of any breach.
“I encourage all direct suppliers and other stakeholders to respond to my call for evidence and provide information about your experiences with Amazon. All responses will be completely confidential.”
Having heard from suppliers reporting Code issues, White told Amazon in 2024 that it must take comprehensive action to demonstrably comply with the Code. The GCA then monitored actions taken by the retailer and heard further evidence about experiences with Amazon. Based on this evidence, White decided that an investigation into compliance with paragraph 5 of the Groceries Code was required.
The GCA noted that it had also received information about other issues at Amazon. It is “continuing to engage” with Amazon as part of a “collaborative approach” and expects the company to take action to address these issues. “If a further investigation is necessary to resolve these issues, the GCA will not hesitate to launch one,” a statement said.
Last year, it was reported that Amazon was overhauling its guidelines and systems for working with suppliers in an attempt to ward off an investigation.
Responding to the GCA announcement, Amazon said that it took the grocery code “incredibly seriously” and would cooperate fully with the watchdog during the investigation.
It added: “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.”
Commenting on news, David Sables, CEO of Sentinel Management Consultants, told trade magazine The Grocer: “It’s absolutely the right decision and should have happened sooner.
“The announcement must come with predictably poor scores to come in the latest survey. Over three years Amazon’s treatment of suppliers have, if anything, got worse.”
John Noble, director of the British Brands Group, added: “Vendors have been concerned for some time about Amazon’s compliance and have been frustrated that its efforts haven’t made a sufficient effect. This investigation is welcomed.”
The Adjudicator is calling for direct suppliers and other stakeholders to respond to the call for evidence to share experiences of supplying Amazon. Submissions can be made by completing the GCA’s online questionnaire, on paper, or in electronic form.
The call for evidence will close on 8 August 2025. The GCA stressed that all responses will be treated as confidential.
NAM Implications:
- Amazon’s consumer-centricity is accepted.
- But not at a cost to its partners in the chain.
- All based on trust…
- Meanwhile, the GCA’s ability to act depends on evidence of breaches in GSCOP…
- …‘based on evidence from a range of sources’ says it all.
- i.e. the more the GCA is told, the more action can be taken.
- Over to you…
