Tesco investigated by Groceries Code Adjudicator

Thursday 5th February 2015

As we anticipated, the Groceries Code Adjudicator, Christine Tacon, has today launched an investigation to determine whether Tesco Plc has breached the Groceries Supply Code of Practice (‘GSCOP’).

The Adjudicator took the decision after she received information relating to Tesco’s profit overstatement. Ms Tacon had asked Tesco to consider and include in its internal investigation whether there had been any breaches of GSCOP.

Interestingly, the Adjudicator has said that the investigation will take 6-9 months and involve a review of Tesco’s practices between 25 June 2013 and 5 February 2015. As we mentioned in our earlier article, the Adjudicator expects from 6 April 2015 to have the power to fine retailers up to 1% of their turnover if she finds there have been breaches of GSCOP.

The investigation will focus on whether Tesco has delayed in paying its suppliers or received payments for the better positioning of suppliers’ non-promotional goods.