Thursday 5th February, 2015

In yet another blow to the wounded Tesco brand, it's been announced today that they are set to be investigated by the Groceries Code Adjudictor (GCA) in relation to its treatment of suppliers.

The investigation is expected to take place over the next 6-9 months and the Adjudicator has called for evidence to be submitted by 3 April 2015. It will cover the conduct of Tesco plc from 25 June 2013 (when the GCA was created) to 5 February 2015 and focus on Parts 4 and 5 of the code which state; no delay in payments and no payments for better positioning of goods (unless in relation to promotions).

However, even if the retailer is found guilty, it's unlikely that anything more than a public apology will result, as until last week, the GCA lacked the teeth to be able to impose fines, and Tesco's conduct falls before the code's latest amendements.

The GCA has said that other retailers may face similar investigations if found to be acting in a similar fashion.