General election manifestos and supermarket regulation - a 'blow' for democracy?

Last week, the Labour Party, Conservatives and the Liberal Democrats rolled out their manifestos ahead of the general election on 6 May 2010.

Each manifesto alludes to the Grocery Supply Code of Practice which came into force on 4 February 2010 through The Groceries (Supply Chain Practices) Market Investigation Order 2009 (GSCOP).

Specifically, both the Labour and Conservative manifestos propose the creation of a Supermarket Ombudsman. Its mission will be to protect farmers and food suppliers from unfair and uncompetitive practices by major retailers, and to ensure that the GSCOP is applied fairly.

Somewhat more nuanced, the Liberal Democrat manifesto states that it will create a so-called 'legal' Supermarket Code and a powerful independent regulator of Britain's food market.

So far, so good, as the parties' proposals all reflect a desire for an independent enforcement body. But, as commentators have pointed out in relation to the parties' manifestos, the detail on the nature and powers of this regulator is wanting. These proposals are also arguably premature and flying in the face of an ongoing democratic process.

The UK Department for Business, Innovation and Skills (BIS) is already engaged in a public consultation relating to the GSCOP, where one of the main focus points is the Competition Commission's recommendation that an independent enforcement body is established.

The consultation asks who this independent body should be, whether there is an existing body that can take on the role, and whether there are strong arguments for or against the creation of a new body. Indeed, in the foreword of the consultation, MP Kevin Brennan states that: "[BIS] are also considering the name given to the body. Many representations received by my department have indicated that the term Ombudsman may confuse and mislead as to its role." The consultation also aims to establish what powers the body might have. The consultation runs until 30 April and therefore, has not yet been concluded.

It is unfortunate that Labour and the Conservatives have already decided to create a Supermarket Ombudsman without waiting for the findings of the consultation. A legitimate response might now be to question how much notice the parties will take of the consultation's findings, and, if there is scant regard for them, what is the point of asking interested parties for their response in the first place?

More information on the impact of the GSCOP and practical actions to consider can be found in a previous analysis prepared by the firm's commercial experts.

If you have any queries please call your normal contact at Wragge & Co LLP or David Lowe (direct dial: +44 (0)20 7664 0322 or email david_lowe@wragge.com), Anita Adam (direct dial: +44 (0)121 629 1844 or email anita_adam@wragge.com) or Bernardine Adkins (direct dial: +44 (0)870 733 0649 or email bernardine_adkins@wragge.com).