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Supermarket Regulator

I am sure that OFT officials will read the record of the debate very carefully. The major concern with the current code is that suppliers will not make complaints to the OFT for fear that such action would limit their ability to secure contracts with other supermarkets. I have listened carefully to that concern. Farmers and suppliers have indicated that they would be more likely to make formal complaints to the OFT if the OFT could guarantee anonymity for complainants. However, any complaint system will require the supermarkets to be made aware of the details of the complaint. An ombudsman or independent regulator would normally need to share complaints with operators, so that the circumstances and legitimacy of the allegations could be verified and the complaint addressed. Clearly, there are some difficulties here. The code has a disputes process which incorporates the recognised ombudsman model. Introducing anonymity to the complaints process under the code would run counter to one of the code’s main objectives—to put relations between supermarkets and their suppliers on a clearer and more predictable basis. In pursuit of that objective, the OFT has encouraged supermarkets to put more of their dealings with suppliers in writing. Of course, suppliers have a right under the code to seek terms of business offered by supermarkets to suppliers in writing. That should help suppliers to be more assertive in their dealings with supermarkets. We welcome the OFT’s commitment to continue to monitor the operation of the code proactively. That is to be achieved through a number of measures, including encouraging greater use of written terms between suppliers and supermarkets.