The Groceries Code Adjudicator (GCA) has been effective in ensuring fair trading relationships between big supermarkets and their suppliers, according to the body that recommended its creation.
The Competition and Markets Authority (CMA) said the GCA, which was established in 2013 to ensure large grocery retailers treat their suppliers fairly and lawfully, is considered a “valuable and trusted adjudicator” and has made “significant progress” in addressing competition concerns in the grocery sector.
The CMA was responding to the Department for Business and Trade’s latest statutory review of the GCA, which is held periodically to assess its performance. The previous three reviews have found the GCA to be effective in enforcing the Groceries Supply Code of Practice.
The latest review is also considering whether the introduction of a new Agricultural Supply Chain Adjudicator, established to enforce fair dealing regulations in specific sectors such as milk, has impacted on the GCA’s ability to enforce the Code.
The GCA’s origins lie in a 2008 investigation by the Competition Commission (since replaced by the CMA) into the UK retail grocery market which found certain retailers were transferring excessive risks and unexpected costs onto suppliers through the adoption of unfair supply chain practices. It recommended the creation of an ombudsman to monitor and enforce compliance with the Code.
The GCA currently regulates the dealings of 14 large retailers but does not cover out of home businesses like restaurant chains and contract caterers. It can arbitrate in disputes between retailers and suppliers and has the power to fine retailers for breaches of the Code. The Code covers unfair dealings such as delays in payments and demands for contributions to marketing costs.
In its latest annual survey published in June, the GCA found the number of suppliers reporting that they faced a Code issue fell from 33% in 2024 to 30% in 2025.
The GCA recently launched an investigation into whether Amazon has breached provisions in the Code relating to delays in payments after receiving evidence from a range of sources.
