Supermarket ombudsman plans unveiled

The government has unveiled plans to introduce a supermarket ombudsman.

The Department for Business, Innovation and Skills said it had accepted the Competition Commission’s recommendation to create a watchdog to monitor supermarket behaviour.

The Ombudsman will enforce the Groceries Supply Code of Practice (GSCOP), which will come into force on 4 February.

Announcing the decision on Wednesday (13 January), consumer minister Kevin Brennan said a consulation would begin in February to decide how to enforce the code, as well as what powers the ombudsman should have.

“The revised GSCOP is a great improvement on the current regime,” he said.

“However, the power that large grocery retailers remain able to wield over their suppliers can still create pressures on small producers, especially in these difficult economic times, which ultimately may impact on consumers.

“Free and fair competition is the key to a healthy market and it is right that there should be an enforcement body to make sure that consumers are getting the best value for money.”

Mr Brennan said the governmemt did not expect the creation of a watchdog would impact on food prices, but more discussion was need on how the body would operate.

“The next step is to consult formally on its nature and role, to ensure that all interested parties can make their views heard and that informed decisions are made.”

DEFRA secretary Hilary Benn said: “The new ombudsman will help strike the right balance between farmers and food producers getting a fair deal and supermarkets enabling consumers to get the high quality British food that they want, at an affordable price.”

View a timeline of the key events in the campaign to get a supermarket ombudsman (Source: NFU).