The Groceries Code Adjudicator (GCA) has launched a targeted investigation into whether Amazon has breached the Groceries Code.
The GCA said it has reasonable grounds to suspect that Amazon has breached paragraph 5 of the Code (No delay in Payments) from 1 March 2022 to 20 June 2025. This is based on evidence from a range of sources.
“The investigation will cover the extent to which paragraph 5 of the Code may have been breached; any impact of Amazon’s conduct on suppliers; and the root causes of any issues,” the GCA said.
“In particular, it will focus on the nature, extent and impact of practices which may have resulted in delays in payments including Amazon’s receipt of goods and payment processes, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers.”
Why Amazon is being investigated
Delays in payment can significantly harm suppliers, said Adjudicator Mark White.
“The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate.
“I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources. It will allow me to determine whether Amazon has breached paragraph 5 of the Groceries Code and the root cause of any breach.
“I encourage all direct suppliers and other stakeholders to respond to my call for evidence and provide information about your experiences with Amazon. All responses will be completely confidential.”
The Adjudicator has called for direct suppliers and other stakeholders to respond to the GCA’s call for evidence to share experiences of supplying Amazon as part of the investigation.
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