Amazon under investigation by British watchdog over late payments
The United Kingdom’s Groceries Code Adjudicator (GCA) is investigating Amazon for possible violations of the grocery delivery code of practice. The investigation stems from concerns that Amazon has delayed payments to its suppliers, which could significantly damage their financial stability and hinder their ability to grow.
This is not the first time Amazon has come under scrutiny by the GCA. Last year, the watchdog warned the online giant to better comply with industry rules designed to protect suppliers. The current investigation focuses on a period starting in early 2024 and aims to gain a full understanding of Amazon’s current payment practices.
The GCA is encouraging suppliers to submit evidence by Aug. 8 and assures them that all responses will be kept confidential. This investigation is the third time the GCA has investigated Amazon’s retail arm since its inception in 2013, following previous investigations into Tesco and Co-op.
If Amazon is found guilty of violating regulations, the company could be fined up to 1% of sales. The GCA stresses the importance of timely payments for suppliers, saying delays can expose them to undue risk and unexpected costs.
Amazon has expressed disappointment with the investigation, but remains committed to cooperating fully with the GCA. The company claims it has significantly improved its experiences with suppliers, including payment practices, and promises to continue working with suppliers to make further changes.
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