UK Grocery Watchdog Investigates Amazon Over Supplier Payment Delays
The UK’s grocery regulator, the Groceries Code Adjudicator (GCA), has opened an investigation into Amazon to determine whether the company breached rules requiring timely payments to suppliers over a three-year period.
The GCA suspects Amazon of violating paragraph 5 of the Groceries Supply Code of Practice (GSCOP), which mandates prompt supplier payments. Adjudicator Mark White warned that such delays could place Amazon’s suppliers at risk and increase unexpected costs, potentially impacting their ability to invest and innovate.
An Amazon spokesperson expressed disappointment with the investigation but pledged full cooperation, emphasizing the company’s commitment to comply with the code.
The probe will cover the period from March 2022, when Amazon was designated under the code, through June 2025. It will scrutinize Amazon’s payment systems, handling of supplier disputes over payment deductions, and whether the company uses such deductions unfairly in commercial negotiations.
Last year, the GCA threatened formal action against Amazon if it did not improve compliance with GSCOP. A 2024 survey found that fewer than half of Amazon suppliers believed the company “consistently” or “mostly” complied with the code.
Amazon stated it had made several improvements since then, including clearer explanations of cost price decisions, minimum notice periods for delisting products, and upgrades to invoice dispute handling.
The GCA has the authority to impose financial penalties of up to 1% of a retailer’s UK turnover.