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, promote competition, and enforce the Groceries Supply Code of Practice. Retailers will contribute to the Ombudsman's funding based on the number of complaints made and upheld against them.

Description

The Office of Fair Trading (OFT) will appoint an independent Grocery Market Ombudsman. The Ombudsman's key duties include:

• Establishing and publishing procedures for monitoring and enforcing the Groceries Supply Code of Practice.
• Investigating complaints and disputes regarding breaches of the Code, from suppliers, retailers, or the OFT itself.
• Making determinations, including ordering remedies, monetary penalties, and awarding costs.
• Providing written reasons for all decisions.
• Gathering information, including requiring the production of documents.
• Publishing reports on investigations and annual reports on activities.

Appeals on points of law can be made to the High Court (England, Northern Ireland) or Court of Session (Scotland).

The OFT will fund the Ombudsman, recovering costs from retailers using a formula based on the number of complaints made and upheld against each retailer. The formula aims to reflect the proportion of complaints, with more complaints resulting in a larger contribution. The OFT and Ombudsman will collaboratively develop and potentially adjust the formula. Abuse of the formula or the Ombudsman's investigative function is punishable by penalties.

Government Spending

The bill will lead to increased government spending for the establishment and operation of the Ombudsman's office. The exact figure is not specified in the bill, but the costs will be initially met by the OFT which will recover costs from retailers.

Groups Affected

• Grocery Retailers: Will be responsible for funding the Ombudsman and may face monetary penalties for breaches of the code and/or abuse of the system.
• Grocery Suppliers: Will have a mechanism to resolve disputes with retailers and can initiate complaints with the Ombudsman.
• Office of Fair Trading (OFT): Responsible for appointing the Ombudsman and for managing the funding mechanism.
• Consumers: May indirectly benefit from greater fairness and competition in the grocery market.

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