Amazon faces UK investigation into late payments to suppliers
UK grocery regulators have launched an investigation by Amazon into violations of rules governing payments to suppliers.
The Groceries Code Audidicator (GCA) said there was “reasonable basis” to suspect that Amazon is violating the UK Grocery Supply Code Code (GSCOP).
The study will consider Amazon’s practices from March 2022 to June 2025 based on evidence received from “various sources,” the GCA said.
Watchdog said it will consider Amazon’s process for receiving and making payments and addressing supplier concerns regarding the use of payment deductions and deduction settlements in negotiations with suppliers.
“A suspicion of delays could expose Amazon’s suppliers to excessive risk and unexpected costs, which could impact their investment and innovation capabilities.”
An Amazon spokesperson said Just food On Friday (June 20), the retail giant filmed GSCOP “incredibly serious” and “works perfectly with the arbitrator.”
“We have already significantly improved the experience of grocery suppliers, including payment practices. This is because supplier contacts have been reduced year-over-year,” the spokesman added.
Amazon has made changes that include giving to suppliers for 30 days to challenge shortages and chargebacks before the money is deducted. Retailers also pointed out the introduction of a “minimum notification period” before the product was removed.
The GCA investigation followed an order from WatchDog almost a year ago when urging Amazon to take “quickly and comprehensive action” to comply with UK regulations protecting its suppliers.
According to WatchDog’s 2024 annual survey, less than half of Amazon-directly supplied respondents believed that retailers were “consistently” or “mostly” attached to the code.
“Amazon Faced with UK Survey on Delayed Payment to Suppliers” was originally created and published Just drinka brand owned by GlobalData.
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