The Groceries Code Adjudicator is launching the investigation with reasonable grounds to suspect Amazon has breached the code and is asking suppliers to contribute anonymously
Retailer relationship watchdog the Groceries Code Adjudicator (GCA) is launching an investigation into online giant Amazon for suspected late payments to suppliers.
The GCA said it has “reasonable grounds” to suspect Amazon has broken paragraph five of the Groceries Supplier Code of Practice (GSCoP), which stipulates no delay in payments, relating to the period between 1 March 2022 and 20 June 2025 and based on evidence from a range of sources.
Any affected Amazon suppliers are being asked to contribute further evidence through an anonymous questionnaire, by post or email, with a deadline of 8 August.
The investigation will cover any impact of Amazon’s conduct on suppliers and the root causes of any issues.
It will focus on practices that may have resulted in delays in payments, including receipt of goods and payment, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers.
“Delays in payment can significantly harm suppliers. The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,” said adjudicator Mark White.
“I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources. I encourage all direct suppliers and other stakeholders to respond to my call for evidence and provide information about your experiences with Amazon. All responses will be completely confidential.”
The investigation follows a more informal conversation with Amazon after the GCA was informed of various issues by suppliers. The body said it told the retailer it should take swift and comprehensive action, but has since decided that a more specific investigation into late payments is required.
