Groceries Code Adjudicator - draft bill begins to take shape

After announcing plans to establish the Groceries Code Adjudicator (GCA), an independent body to monitor and enforce the revised Groceries Supply Code of Practice (GSCOP), the Government issued a draft GCA Bill in May. This set out the need for the GCA, its role and powers of enforcement, and invited comments from stakeholders.

A Select Committee of the Department for Business Information and Skills (BIS) has since issued a report recommending a number of changes to the Bill. These include giving the GCA the power to issue fines and allowing information from trade associations representing direct and indirect suppliers to trigger an investigation.

This month the Minister for Employment Relations, Consumer and Postal Affairs, Edward Davey MP, confirmed that the Government aims to introduce the GCA Bill as soon as Parliamentary time allows. However, despite subsequent questions from Parliament, the timescales for implementation remain uncertain. This suggests the Bill's arrival may not be imminent, even though a presentation by BIS earlier this month indicated the GCA could be up and running by 2013.

Where the Government has given clarity is in its response to the BIS Select Committee's recommendations. While the main elements of the GCA Bill are unchanged, a number of the committee's minor recommendations have been incorporated, such as providing the GCA with the power to escalate remedies. The Government has also agreed that the GCA role and operation will be reviewed after two years, instead of the original three.

On the subject of whether information from indirect suppliers should be allowed to trigger a GCA investigation, the Government is yet to reach a conclusion. For now, it has taken the view that it should not, but further consideration is being given. 

A full copy of the Government's response to the BIS Select Committee's report is available to download online.

For more information on GSCOP and to understand how it might affect your business, please visit our earlier alerts:

• Draft Groceries Code Adjudicator Bill - time to have your say. Details of the draft GCA bill and the opportunity for comment.
• Consultation on supermarket regulator. A discussion of BIS's consultation on matters related to enforcement of the Groceries Supply Code of Practice.
• Terms to be imposed into supplier: retailer grocery contracts. An analysis of the Groceries (Supply Chain Practices) Market Investigation Order 2009 and points to consider.
• Is it time for the supermarkets to bite back? An analysis of the Competition Commission's report on competition in the grocery market.