Menu
05/02/2015
New Regulator To Investigate Tesco
A new regulator is to investigate supermarket chain Tesco over its relations with suppliers.
The announcement follows concerns that the company breached the Groceries Supply Code of Practice.
The Groceries Code Adjudicator (GCA) is the latest organisation to investigate the retailer, after the Serious Fraud Office and the Financial Reporting Council.
GCA adjudicator, Christine Tacon, said she made the decision to investigate after receiving information "relating to practices associated with the profit over-statement announced by the retailer in September 2014".
It will look into the company's profits and delays in payments to suppliers.
Following discussions with Tesco, she said further information is needed from direct suppliers and other parties to determine if, or what, further action should be taken.
Ms Tacon has said she had "reasonable suspicion" that the code had been breached, but the GCA will be unable to find the supermarket for any past offences.
The investigation could take up to nine months, and evidence is to be submitted by 3 April 2015.
Ms Tacon commented: "This is the first investigation I have launched and it is a significant step for the GCA. I have taken this decision after careful consideration of all the information submitted to me so far.
"I have applied the GCA published prioritisation principles to each of the practices under consideration and have evidence that they were not isolated incidents, each involving a number of suppliers and significant sums of money."
Meanwhile, a spokesperson for Tesco is quoted as saying: "We have worked closely with the office of the adjudicator since its creation to put in place strong compliance processes.
"An internal review we carried out and shared with the GCA identified some areas of concern. We have taken action to strengthen compliance and, as we have announced, we are changing the way we work with suppliers."
(JP/CD)
The announcement follows concerns that the company breached the Groceries Supply Code of Practice.
The Groceries Code Adjudicator (GCA) is the latest organisation to investigate the retailer, after the Serious Fraud Office and the Financial Reporting Council.
GCA adjudicator, Christine Tacon, said she made the decision to investigate after receiving information "relating to practices associated with the profit over-statement announced by the retailer in September 2014".
It will look into the company's profits and delays in payments to suppliers.
Following discussions with Tesco, she said further information is needed from direct suppliers and other parties to determine if, or what, further action should be taken.
Ms Tacon has said she had "reasonable suspicion" that the code had been breached, but the GCA will be unable to find the supermarket for any past offences.
The investigation could take up to nine months, and evidence is to be submitted by 3 April 2015.
Ms Tacon commented: "This is the first investigation I have launched and it is a significant step for the GCA. I have taken this decision after careful consideration of all the information submitted to me so far.
"I have applied the GCA published prioritisation principles to each of the practices under consideration and have evidence that they were not isolated incidents, each involving a number of suppliers and significant sums of money."
Meanwhile, a spokesperson for Tesco is quoted as saying: "We have worked closely with the office of the adjudicator since its creation to put in place strong compliance processes.
"An internal review we carried out and shared with the GCA identified some areas of concern. We have taken action to strengthen compliance and, as we have announced, we are changing the way we work with suppliers."
(JP/CD)
Related UK National News Stories
Click here for the latest headlines.
11 November 2009
Which? Asks Regulators To Investigate Energy Suppliers
Some energy suppliers could be breaching Consumer Protection Regulations (CPRs) by allowing customers to unknowingly build up large debts through underpaid bills, says Which? Consumers can be left owing huge amounts from years of underpayment because their energy bills have been based on estimates, instead of meter readings.
Which? Asks Regulators To Investigate Energy Suppliers
Some energy suppliers could be breaching Consumer Protection Regulations (CPRs) by allowing customers to unknowingly build up large debts through underpaid bills, says Which? Consumers can be left owing huge amounts from years of underpayment because their energy bills have been based on estimates, instead of meter readings.
22 February 2008
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses. Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms. The regulator has no strong evidence of failure in the gas and electricity market.
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses. Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms. The regulator has no strong evidence of failure in the gas and electricity market.
07 October 2014
Fifth Tesco Executive Asked To 'Step Aside'
A fifth Tesco executive has been asked to step aside, while the supermarket continues to investigate an alleged £250 million profit forecast overstatement. Kevin Grace, commercial director at Tesco has been asked to step aside, as part of the investigation, according to a report by the Financial Times.
Fifth Tesco Executive Asked To 'Step Aside'
A fifth Tesco executive has been asked to step aside, while the supermarket continues to investigate an alleged £250 million profit forecast overstatement. Kevin Grace, commercial director at Tesco has been asked to step aside, as part of the investigation, according to a report by the Financial Times.
17 July 2006
Parents warned over children's internet use
A third of children, many as young as 11, use blogs and social networking sites at least two or three times a week, yet two-thirds of parents don't know what a blog is, a new report has revealed. The 'Get I.T.
Parents warned over children's internet use
A third of children, many as young as 11, use blogs and social networking sites at least two or three times a week, yet two-thirds of parents don't know what a blog is, a new report has revealed. The 'Get I.T.
28 February 2006
Powergen announces price rises
Energy supplier Powergen has announced that it is to increase gas and electricity prices this year. The increases, which will come into effect from March 10, will electricity prices rise by 18.4% and gas prices increase by 24.4%. Rising wholesale gas costs have been blamed for the price hikes.
Powergen announces price rises
Energy supplier Powergen has announced that it is to increase gas and electricity prices this year. The increases, which will come into effect from March 10, will electricity prices rise by 18.4% and gas prices increase by 24.4%. Rising wholesale gas costs have been blamed for the price hikes.
-
Northern Ireland WeatherThis Evening and Tonight:It will remain cloudy through the evening and overnight with some mist or the odd spot of drizzle possible at times. Light southwest winds continue. Minimum temperature 8 °C.
