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Competition Commission Investigation into supermarket
practices called for by CLA
Editorial
Filed 02 Jun 05
©www.land-care.org.uk
The Country Land and Business Association
(CLA) is calling for a new Competition Commission investigation
into the practices of supermarkets in dealing with their suppliers.
In 2000, the Commission identified 25 bad practices but only 6 of
these practices have been thoroughly explored by the Office of Fair
Trading (OFT).
As the OFT closes its consultation on the
supermarkets Code of Practice, which attempts but fails to redress
the aggressive purchasing tactics of the big supermarkets, the CLA
strongly disagrees that a lack of evidence of abuse of the Code
is proof that the code is working.
"If the OFT remains blinkered to suppliers'
fear of complaining and being dropped by the large chains, then
we must turn to the Competition Commission. If the Commission found
over twenty types of improper practices in 2000, and they found
further evidence as they considered the Morrisons - Safeway merger,
then we are confident that a new investigation would confirm that
unfair practices are still happening despite the voluntary Code,"
said Mark Hudson, CLA President.
"It's not just the suppliers who will be
affected if no action is taken. With no written contracts, vague
agreements and suppliers expected to carry the cost of price cuts
and special offers controlled by the supermarkets, no wonder our
domestic suppliers are finding it increasingly difficult to run
viable businesses. At some stage, they won't find it viable and
then, without domestic suppliers, the consumers will find rising
prices and limited choices in the stores," he continued.
The CLA has written to the OFT to recommend that
an independent ombudsman is created to police the Code and that
the Competition Commission immediately launch a new market investigation.
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