The Groceries Code Adjudicator (GCA) has launched an investigation into Amazon to see if the online retail giant has broken rules over late payments.
The UK grocery watchdog started an investigation into Amazon almost by improving a year ago saying the online retail giant must take “swift and comprehensive action” their compliance with industry regulations.
Adjudicator Mark White said: “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.”
An Amazon spokesman said, “Amazon takes the Groceries Supply Code of Practice incredibly seriously and we will co-operate fully with the adjudicator as he carries out his investigation.
“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 falling year-on-year.
“We will continue to listen and work with our grocery suppliers as we roll out further changes.”
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