CLA loses patience with OFT

THE COUNTRY Land and Business Association has called for a new Competition Commission investigation into supermarkets’ dealings with their suppliers.

The call came as the Office of Fair Trading closed its consultation on the supermarkets Code of Practice.

The CLA said it strongly disagreed that a lack of evidence of abuse of the code was proof that the code is working.

“If the OFT remains blinkered to suppliers’ fear of complaining and being dropped by the large chains, then we must turn to the Competition Commission,” said Mark Hudson, CLA president.

“We are confident that a new investigation would confirm that unfair practices are still happening despite the voluntary code.”

Mr Hudson pointed out suppliers would not be the only ones affected if no action was taken.

“At some stage, they won’t find it viable and then, without domestic suppliers, the consumers will find rising prices and limited choices in the stores,” he continued.

The CLA has also written to the OFT to recommend that an independent ombudsman is created to police the code.