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Article

8 Feb 2016

Author:
Traidcraft

Traidcraft welcomes findings & calls for expansion of supermarket watchdog's remit to include indirect suppliers

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In January 2016, the supermarkets' watchdog (or Groceries Code Adjudicator) announced the results of an investigation into Tesco. This showed that the supermarket giant had been abusing its position by delaying payments to suppliers.   Fiona Gooch from Traidcraft commented:  'Traidcraft welcomes the findings of the Groceries Code Adjudicator investigation into Tesco. However the Adjudicator is currently only able to look at abuses against direct suppliers. Our research shows that when supermarkets dump risk onto their suppliers in the form of delayed payments or additional costs, these risks are often passed on down the supply chain which can ultimately lead to the exploitation of workers and producers in developing countries. This is why the Adjudicator’s remit should be extended when it comes up for review later this year.'  Tesco stated that the company has now changed its practices.