The UK Groceries Code Adjudicator (GCA) has initiated a statutory investigation into Amazon for alleged breaches of payment delay rules under the Groceries Code, focusing on practices since January 2024.
This investigation highlights ongoing compliance issues, as Amazon has been the lowest performer in GCA compliance surveys for three consecutive years.
Details of the GCA’s Investigation into Amazon
The Groceries Code Adjudicator (GCA) has officially launched an investigation targeting Amazon’s adherence to payment timelines stipulated by the Groceries Code. This action follows consistent reports of Amazon’s lagging performance in sector-wide compliance surveys.
The investigation scrutinizes payment practices that have been in place since Amazon was designated under the Groceries Code in 2022, aiming to address and rectify ongoing compliance challenges.
How Payment Delays Are Straining Supplier Relationships
Delayed payments by Amazon have placed significant financial strain on suppliers, exposing them to excessive risk and unexpected costs. These practices potentially hinder suppliers’ ability to invest and innovate, affecting their overall market competitiveness.
According to the GCA’s 2025 survey, while there has been a slight improvement in overall sector compliance, 30% of suppliers still experience issues related to breaches of the Groceries Code.
Statements from Industry Leaders
Mark White, the current Adjudicator, has expressed concern over the detrimental effects of payment delays. He stated, “Delays in payment can significantly harm suppliers… exposing Amazon suppliers to excessive risk and unexpected costs.”
White decided to initiate the investigation based on “a range of evidence” from multiple sources, highlighting the systemic nature of the issues faced by suppliers dealing with Amazon.
Comparative Compliance Across the Sector
While Amazon continues to lag, other retailers have shown improvement in adhering to the Groceries Code. For instance, Lidl has reached a compliance rate of 91%, starkly contrasting with Amazon’s 66%.
This disparity raises questions about why Amazon has not managed to improve its compliance rates despite clear guidelines and the ongoing regulatory oversight by the GCA.
Insightful Data on Groceries Code Compliance
| Category | Detail |
|---|---|
| Amazon Compliance Rate | 66% |
| Lidl Compliance Rate | 91% |
| Suppliers Facing Issues | 30% |
Navigating the Regulatory Landscape and What Lies Ahead
The Department for Business and Trade (DBT) is concurrently conducting a statutory review, consulting on the GCA’s performance and effectiveness. This review, closing on 5 August 2025, could influence the ongoing investigation into Amazon.
The outcomes of this investigation and the statutory review may lead to significant changes in how the Groceries Code is enforced across the sector, potentially setting new precedents for compliance and regulatory oversight.
Timeline and Next Steps in the Investigation
The GCA has set a deadline for the call for evidence on 8 August 2025, allowing suppliers to submit information confidentially. This process is crucial for gathering comprehensive evidence to assess Amazon’s compliance fully.
Following the evidence collection, the GCA will proceed with detailed evaluations to determine the necessary actions to ensure Amazon adheres to the established payment practices under the Groceries Code.
Additional Reading
Sources: UK Government News, GCA Investigation Launch, and Food Manufacture.
Prepared by Ivan Alexander Golden, Founder of THX News™, an independent news organization delivering timely insights from global official sources. Combines AI-analyzed research with human-edited accuracy and context.
