5th Feb 2015 06:49
LONDON (Alliance News) - The UK's Groceries Code Adjudicator on Thursday said it has launched an investigation into Tesco PLC, after concluding it had sufficient reason to suspect the retailer has breached the Groceries Supply Code of Practice.
The adjudicator, Christine Tacon, said she had made the decision to launch an investigation after considering information submitted regarding practices associated with Tesco's profit overstatement in September 2014.
Tacon has discussed the practices with Tesco and now needs further information from direct suppliers and others in order to decide what action to take.
The investigation is set to take place over the next six to nine months and the adjudicator has called for evidence to be submitted by April 3. The probe will cover Tesco's conduct from June 25, 2013 to February 2015.
It will focus on clauses in the code relating to there being no delay in payments and no payments for better positioning of goods unless in relation to promotions.
"This is the first investigation I have launched and it is a significant step for the GCA. I have taken this decision after careful consideration of all the information submitted to me so far," said Tacon.
By Sam Unsted; [email protected]; @SamUAtAlliance
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