Supermarket supply ombudsman will be enforced

In its final report examining the British grocery sector, the commission said that it will seek undertakings from major grocery retailers to establish the ombudsman. His role will mainly be to make sure supermarkets comply with the new, tougher Groceries Supply Code of Practice. The ombudsman will arbitrate in disputes between suppliers and retailers and receive and investigate complaints from suppliers.

If the supermarkets failed to reach agreement on setting up the ombudsman within a “reasonable period of time”, the Department for Business should take steps to do so, the report said.

The commission added that, if this were the case, the ombudsman should be given “the power to levy significant financial penalties on the retailers for non-compliance”.