A British regulator demanded Amazon to take "swift and comprehensive action" to improve its compliance with industry regulations regarding supplier protection.
The Independent reported that the Groceries Code Adjudicator (GCA) would be forced to launch a formal investigation if necessary to ensure that the company would treat its suppliers fairly and according to law.
In addition, the GCA encouraged suppliers to confidentially submit information about any issues they might be facing with Amazon.
A 2024 annual survey showed that there was a fall in the percentage of retailers not complying with the Groceries Supply Code of Practice (GSCOP), from 36% last year to 33% this year. However, Amazon's perceived code compliance score fell from 59% last year to 47%.
GCA chief Mark White said that he welcomed the improvement in retailers' treatment of suppliers in multiple issues, but at the same time, noticed that it was getting worse for Amazon.
The results are in! The GCA has published its 2024 annual survey results, showing improved treatment of grocery suppliers by the 14 largest retailers. Find out more here: https://t.co/O7PGuvfi3v
— Groceries Code Adjudicator (@UKGCA) July 11, 2024
Amazon Performs Poorly on UK's Grocery Code
The GCA found that less than half of its respondents directly supplying Amazon said that the retailer "consistently" or "mostly" complied with the code, which aimed to ensure that Britain's largest grocery retailers would treat suppliers fairly.
The code also restricts firms from making changes to supply contracts abruptly, as well as requiring retailers to give an appropriate time period before ending the contract and provide a reason for doing so.
Currently, the Jeff Bezos-founded retailer is competing against local grocery chains like Tesco, Sainsbury's, and Marks & Spencer.
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