Britain’s Grocery Code Adjudicator has threatened Amazon.com Inc (NASDAQ:AMZN) with a formal investigation under the Groceries Supply Code of Practice (GSCOP).
GSCOP, a regulatory framework designed to ensure fair treatment of suppliers by large grocery retailers, was established to address concerns about the balance of power between large supermarkets and their suppliers.
The GCA’s annual compliance survey noted an overall improvement in the treatment of suppliers, but Amazon was a major outlier, with less than half of suppliers believing they are fairly treated by the US e-commerce giant.
“The survey shows clearly that many suppliers do not believe that Amazon is complying with the Code. Amazon must ensure suppliers understand the changes it has made since its designation and in response to these survey results, and make any further changes that are needed to ensure Code compliance.
“I will not hesitate to launch a formal investigation if appropriate and necessary to ensure Amazon is treating its suppliers fairly and lawfully.
“I encourage suppliers to continue to confidentially tell me about the issues they are facing with Amazon.”
Proactive has asked Amazon for a comment.