backing for retail ombudsman

The code of practice was drawn up by Britain’s competition regulator after an investigation of the grocery industry from 2006 to 2008 concluded large grocery retailers were passing on excessive risks and unexpected costs to their suppliers.

The Competition Commission asked the Government in August to create an ombudsman to enforce the new code after a majority of retailers failed to agree on a voluntary system.

The new code will come into force on February 4 and a period of consultation will follow, including who the ombudsman should be.

Northern chief executive Stefan Barden said the ombudsman will give consu-mers a more transparent view of the industry. “The ombuds-man will support a process where all suppliers and retailers can hold constructive dialogue to resolve issues,” he said.