SUPERMARKET CODE OF PRACTICE

Motion Text

That this House notes the conclusions of the recent OFT review that the Supermarket Code of Practice has failed to protect suppliers to the biggest four supermarkets from unfair trading practices; notes that suppliers are too afraid to bring complaints forward under the existing mediation system; regrets that the OFT failed to recommend any firm action other than more investigations; notes the original findings of the Competition Commission that the trading practices of the four biggest supermarkets are leading to adverse effects including the loss of smaller suppliers and smaller retailers and the reduction of quality and choice to consumers; notes with concern that the adverse effects are felt most by small and family farmers in the UK and overseas, by independent shops and smaller retailers and by people without care that rely on local shops; and calls on the Ministers to draw up a new strengthened and legally-binding code of practice with stricter terms and to appoint an independent supermarket watchdog pro-actively to monitor the effectiveness of the code, provide an independent mediation process between suppliers and supermarkets, monitor other aspects of the grocery market, and make its findings public.