Overview

This bill establishes an independent Grocery Market Ombudsman to oversee fair dealing between grocery retailers and their suppliers. The Ombudsman will investigate complaints and disputes, enforce the Groceries Supply Code of Practice, and promote competition, ultimately aiming to benefit consumers.

Description

The bill creates the Office of the Grocery Market Ombudsman, appointed by the Office of Fair Trading (OFT). The Ombudsman's key duties include establishing and publishing procedures for monitoring and enforcing the Groceries Supply Code of Practice, investigating complaints and disputes, and issuing determinations. These determinations can include ordering parties to take specific actions or imposing monetary penalties and costs awards. The Ombudsman will have the power to gather information and investigate claims of abuse of the system. Decisions of the Ombudsman are generally final and binding, though appeals on points of law are possible. The OFT will fund the Ombudsman, recouping costs from retailers based on a formula linked to the number of complaints made and upheld against each retailer. This formula aims to ensure that retailers who engage in unfair practices contribute more towards the Ombudsman’s funding. The bill also includes provisions for reporting requirements and the enforcement of penalties and costs orders.

Government Spending

The bill initially involves government expenditure for the establishment and initial running of the Ombudsman's office. However, the long-term cost will be recovered from retailers through a reimbursement formula managed by the OFT. Specific figures are not provided in the bill itself.

Groups Affected

• Grocery Retailers: Will be responsible for funding the Ombudsman through a reimbursement formula, potentially facing monetary penalties for non-compliance or breaches of the Groceries Supply Code of Practice.
• Grocery Suppliers: Can use the Ombudsman to resolve disputes with retailers and will benefit from fairer dealings.
• Consumers: Will indirectly benefit from increased competition and fairer prices due to the improved oversight of the grocery supply chain.
• Office of Fair Trading (OFT): Responsible for appointing and initially funding the Ombudsman and managing the retailer reimbursement system.
• The Ombudsman: Will be responsible for investigating complaints and disputes and enforcing the Groceries Supply Code of Practice.

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