The UK grocery regulator has launched an investigation into Amazon for alleged breaches of rules governing payments to suppliers.
The Groceries Code Adjudicator (GCA) said it has “reasonable grounds” to suspect Amazon has breached the UK’s Groceries Supply Code of Practice (GSCOP), which requires no delays in supplier payments.
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The investigation will examine Amazon’s practices from March 2022 to June 2025, based on evidence received from “a range of sources”, the GCA said.
The watchdog said it would look into Amazon’s processes for receiving goods and making payments, handling supplier concerns about payment deductions and the use of deduction settlements in negotiations with suppliers.
“The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,” GCA adjudicator Mark White said in a statement.
An Amazon spokesperson told Just Food on Friday (20 June) the retail giant takes the GSCOP “incredibly seriously” and will “cooperate fully with the adjudicator”.
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By GlobalData“We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing year-on-year,” the spokesperson added.
Amazon has made changes including giving suppliers 30 days to challenge shortages and chargebacks before any money is deducted. The retailer also pointed to its introduction of “minimum notification periods” before any products are de-listed.
The GCA’s investigation follows a directive from the watchdog nearly a year ago when it urged Amazon to take “swift and comprehensive action” to comply with UK rules protecting suppliers.
According to the watchdog’s 2024 annual survey, fewer than half of respondents directly supplying Amazon believed the retailer “consistently” or “mostly” adhered to the code.
