Contracts – supply agreements with major UK supermarkets – GSCOP protection for suppliers
Contracts for the supply of wine to certain "Designated Retailers" (the major UK supermarkets – currently ten in number) are subject to regulations which impose a set of mandatory "fair dealing" terms that those Retailers must include in every supply contract, with every supplier, wherever in the world the supplier is located.
The Groceries Supply Code of Practice
By 2006 the behaviour of the major supermarkets towards their suppliers had become such a concern that the regulator (the UK Competition Commission) began an investigation into the sector. In April 2008 the Commission published a report which concluded that regulation was required, and in 2009 made a legislative order (the Order). This took effect in February 2010 and introduced the Groceries Supply Code of Practice (GSCOP). The Order applies to UK grocery retailers with a turnover of more than £1 billion pa. It is intended to make them desist from practices that are considered unacceptable, and generally behave fairly and lawfully towards their suppliers.
The Order
The Order applies to the "Designated Retailers" (DRs) – currently: Asda, Co-op, M&S, Morrisons, Sainsburys, Tesco, Waitrose, Aldi, Iceland, and Lidl.
The Order requires that every contract a DR makes with a Supplier must ......
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