The Groceries Code Adjudicator (GCA) has initiated a targeted investigation into Amazon.com, Inc. (Amazon) to determine whether the company has breached paragraph 5 of the Groceries Code.
This paragraph specifically addresses the issue of payment delays to suppliers, with the GCA having reasonable grounds to suspect a breach of this regulation between March 1, 2022, and June 20, 2025.
The investigation aims to understand the extent of these delays and their impact on suppliers, as well as to identify any underlying causes of the issues.
Focus of the Investigation
The GCA will examine whether Amazon’s actions have caused significant delays in payments to suppliers, focusing on several key areas:
- Amazon’s receipt of goods and payment processes: This involves looking at how Amazon handles the receipt of goods and the subsequent payment to suppliers.
- Supplier concerns over payment deductions: The investigation will explore how Amazon manages any deductions made from payments and how suppliers’ concerns regarding these deductions are addressed.
- Settlements of deductions in commercial negotiations: It will also look into how settlements related to deductions are handled during negotiations with suppliers.
Although the investigation will cover the period from Amazon’s designation on March 1, 2022, to June 20, 2025, it will particularly focus on practices since January 2024 to gain a more accurate picture of Amazon’s current operations.
Statement from the GCA Adjudicator
Mark White, the Groceries Code Adjudicator, expressed concerns over the potential harm caused to suppliers by payment delays. He noted that such delays could expose suppliers to unforeseen risks and costs, affecting their ability to invest and innovate.
White emphasized that this investigation is necessary to determine whether Amazon has breached the Groceries Code and, if so, to identify the root causes of such breaches.
Previous Engagement with Amazon
The GCA had previously engaged with Amazon following reports from suppliers about issues with the Groceries Code. In 2024, White advised Amazon to take swift action to comply with the Code, and the GCA has since been monitoring the situation.
Despite Amazon’s attempts to address concerns, further evidence from suppliers indicated that an investigation specifically into paragraph 5, dealing with payment delays, was required.
Other Issues at Amazon
In addition to the investigation into payment delays, the GCA has also received information about other potential breaches of the Groceries Code at Amazon.
The GCA continues to engage with Amazon and expects the company to take corrective actions. If necessary, further investigations will be launched to address these additional concerns.
Call for Evidence
The GCA has issued a call for evidence to direct suppliers and stakeholders who have experience supplying Amazon. Suppliers are encouraged to share their experiences by completing the GCA’s confidential questionnaire or by submitting their responses in paper or electronic form to the GCA by the deadline of August 8, 2025.
All responses will be treated confidentially, and the GCA has committed to ensuring the privacy of suppliers, with no individual supplier being identified in the report unless they consent to the release of their information. The GCA may use anonymized evidence in its investigation report to ensure confidentiality.
Data Protection and Confidentiality
The GCA is required by law to keep all submitted information confidential. Personal data will be processed in accordance with applicable data protection laws, and any identifying details will be kept private unless explicit consent is given.
However, it’s important to note that any information submitted may be subject to requests under the Freedom of Information Act 2000 or other applicable UK legislation.
The investigation into Amazon’s potential breach of paragraph 5 of the Groceries Code will look into the impact of payment delays and other practices that may affect suppliers. It’s crucial for suppliers to share their experiences to help ensure fair treatment and compliance with the Groceries Code.
The investigation is an important step in ensuring that large retailers like Amazon adhere to fair business practices, particularly when it comes to timely payments to suppliers.
