Tesco Under Investigation Over Dealings With Suppliers
Published on Feb 5 2015 11:27 AM in Retail
An investigation has been launched against Tesco by the British Grocery Codes Adjudicator (GCA), following allegations that the supermarket delayed payments to suppliers and unfairly handled payments for shelf promotions.
The GCA made the decision after considering information about practices associated with Tesco's first half profit over-statement. Adjudicator, Christine Tacon commented, "I have reasonable suspicion that Tesco breached the code in two areas. One is reasonable payments and the second is payments for better positions on shelf outside promotions."
Speaking on BBC Radio 4's Today programme, she asked suppliers to come forward and promised their anonymity would be protected. She said, "I have a legal duty to protect their anonymity. And in this case there is very much safety in numbers and I frequently hear about the same issues from every sector in groceries from toilet rolls, to apples, to wine. I'm just looking for a large amount of evidence and anonymity will be protected."
Tesco is already under investigation in the UK by Britain's Serious Fraud Office and the Financial Reporting Council, after it overstated profit by £263 million.
© 2015 - Checkout Magazine by Jenny Whelan