The UK’s Groceries Code Adjudicator (GCA) is threatening Amazon with a formal investigation if they don’t improve their treatment of suppliers. The GCA is concerned about Amazon’s compliance with the Groceries Supply Code of Practice (GSCOP), which aims to protect suppliers from unfair practices by large retailers. In the GCA’s 2024 survey, only 47% of Amazon’s suppliers believed the company consistently or mostly complied with the GSCOP. This is a significant drop from 59% in 2023.
The GCA has demanded that Amazon take swift action to improve their compliance. They are monitoring the company’s progress and are prepared to launch a formal investigation if necessary. If the investigation finds serious violations, the GCA could impose financial penalties of up to 1% of Amazon’s UK turnover.
Amazon has expressed disappointment with the survey results and has pledged to make improvements. They have already implemented some changes, such as clearer explanations for price increases and a new system for handling invoice disputes. They are committed to making further changes in the future.