Afternoon:
9°c
Bid to stop supermarkets ‘ripping off suppliers’
4 Aug 2009The Competition Commission today called on the Government to appoint an ombudsman to stop supermarkets ripping off their suppliers.
The Commission, which has long been at war with the big grocery chains led by Tesco, said it has recommended the Department for Business establish an ombudsman to arbitrate on disputes between retailers and suppliers, and oversee a code of practice.
Commission chairman Peter Freeman said pressure on suppliers from retailers ultimately hurts consumers.
“Our inquiry last year clearly revealed problems that require action and which, if left unchecked, would damage the consumer,” he said. “We continue to believe everyone's interests – and that includes retailers – would be served by tackling a problem that has clouded the industry for many years.
“The current economic difficulties if anything reinforce the need for action. While some retailers have recognised this, regrettably the majority have not. We are left with no alternative but to set out the new code of practice and recommend the Department set up the ombudsman.”
The ombudsman, said Freeman, would cost £5 million to operate. That will be recovered from the supermarkets, according to their size, but also according to the number of complaints they get tangled up in.
Reader views (2)
The four major Supermarket chains are just plain greedy, and it's greed of the worst kind.... A hunger for power and the destruction of all their competition. In many cases they have collectively destroyed our High Streets.
When they finish their fighting for supremacy we will no doubt be ripped off even more than currently, but at least there will only be one of them left, and we will then be spared the interminable bickering advertising !
Given the growing power of the supermarkets and accepting the ultimate supremacy of one, It is surely likely that this country will end up flying perhaps the ‘Tesco Flag’ and being called ‘Tesco’. [None of this United Kingdom rubbish] Though it could not be much worse a State than the politicians have made of this country to date ! At least on the world stage we would be like the Americans, not getting involved unless there is an ultimate profit to be made ! [Cynical or what ?]
Seriously though, the power ‘Supermarkets’ are beginning to wield is a cause for concern. When they move into a market they buy our custom, destroy their competition in so doing, then proceed to make us all pay.
- Ken Fitzgerald, Maldon, 06/08/2009 12:35
Report abuse
ITS NOT ONLY SUPPLIERS THAT ARE RIPPED OFF BY SUPERMARKETS, SO ARE THE CUSTOMERS. TWO FOR ONE IS AN ABSOLUTE FIDDLE BECAUSE THOSE BUYING JUST ONE MUST BE PAYING IN EXCESS OF THE REAL PRICE, TO SAY NOTHING OF THE ENORMOUS WASTE WHEN PEOPLE BUY TO MUCH. TODAY I SAW BOTTLES OF WINE, £6,99 IF YOU PURCHASED JUST ONE, BUT 3 for £10, AND WE WORRY ABOUT BINGE DRINKING?
SIMILARLY A WINE WAS OFFERED REDUCED FROM £6.99 TO £3.99 BUT IT WAS ON DISPLAY RIGHT NEXT TO A VIRTUALLY IDENTICAL LABEL, EXCEPT FOR THE WORD RESERVE IN VERY SMALL PRINT, AT £8.99. HOW MANY PEOPLE PICKING UP SEVERAL BOTTLES WATCH THE PRICE BEING RUNG UP AT THE TILL.
MANY YEARS AGO IF YOU OFFERED AN ITEM AT A REDUCED PRICE, THAT ARTICLE HAD TO BE ON SALE FOR ONE MONTH IN THE LAST SIX, AT THE FULL PRICE. HOW MANY STORES TODAY ABIDE BY THAT RULE.
MONEY OFF DISPLAYS MEAN NOTHING, MONEY OFF OF WHAT. ALL MULTIPLE OFFERS SHOULD BE AGAINST THE LAW. WE NEED A NEW CONSUMER ACT. HOW CAN THE SAME STRAWBERRIES BE £1.35 AT ONE STORE AND 2 FOR £1.99 at another, WHILE IN THE LOCAL MARKET THEY ARE 79p
- Alan Green, Woodford Green, 04/08/2009 13:37
Report abuse
