Amazon could face investigation if it fails to improve compliance with the industry code to protect suppliers. Credit: Jevanto Productions/Shutterstock.

E-commerce major Amazon has been asked by UK regulator the Groceries Code Adjudicator (GCA) to improve its treatment of suppliers.  

The GCA has expressed concerns following a survey in which under half of Amazon’s direct suppliers believed that the company consistently followed the Groceries Supply Code of Practice (GSCOP).  

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The code seeks to ensure that major UK grocery retailers, including Tesco, Sainsbury’s and Marks & Spencer, treat suppliers fairly.  

The GCA’s 2024 annual survey indicated that only 47% of Amazon’s direct suppliers perceived the company as consistently complying with the code, a notable decline from the previous year’s 59%. 

The 11th annual survey received 3,000 responses and revealed a slight decrease in suppliers experiencing code issues, down from 36% to 33%.  

The average compliance score across the 14 largest UK grocery retailers was 91%, excluding Amazon. With Amazon included, the average was 94%, indicating that its performance significantly lagged behind its peers. 

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Amazon, which became subject to the GSCOP in 2022, has been urged to take “swift and comprehensive action” to demonstrate compliance.  

The GCA is currently assessing the effectiveness of changes implemented by Amazon and their impact on suppliers.  

Groceries code adjudicator Mark White said: “I am encouraged to see improvements in retailers’ treatment of suppliers across a range of issues including the management of cost price increase requests, but also resolution of invoice discrepancies and data input errors. 

“However, the survey shows clearly that many suppliers do not believe that Amazon is complying with the Code. Amazon must ensure suppliers understand the changes it has made since its designation and in response to these survey results, and make any further changes that are needed to ensure code compliance. 

“I will not hesitate to launch a formal investigation if appropriate and necessary to ensure Amazon is treating its suppliers fairly and lawfully. 

“I encourage suppliers to continue to confidentially tell me about the issues they are facing with Amazon.”