New regulations have come into force governing how supermarkets behave towards suppliers. The Groceries Supply Code of Practice (GSCOP) replaces the Supermarkets Code of Practice (SCOP) which was introduced in 2001 following the Competition Commission’s 2000 report on supermarkets. The GSCOP officially replaced the SCOP on 4 February 2010.
The Competition Commission has announced that it accepts there needs to be a body established to enforce the GSCOP and will consult shortly on what powers the body might have and who it will be. It has also recommended to the Department of Communities and Local Government - and the devolved administrations in Scotland, Wales and Northern Ireland - that they take the necessary steps to introduce a competition test in planning decisions on larger grocery stores.
In addition, the Commission has published a revised draft Controlled Land Order, outlining arrangements to restrict the practice of grocery retailers attempting to prevent entry by their competitors to a particular area. The move is aimed at improving competition in local areas. The Commission has also published a provisional recommendation to the Office of Fair Trading on the choice of software to be used to determine the area covered by each local market.
