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This week the Department for Business, Innovation and Skills announced that the Groceries Code Adjudicator, a position to be established under the Groceries Code Adjudicator Bill which is currently passing through parliament, will have the power to impose immediate fines to enforce compliance with the Grocery Supply Code of Practice.
One of the main purposes of the Adjudicator is to protect suppliers from unfair practices by large supermarkets. Under the Bill the Adjudicator will arbitrate disputes and investigate breaches of the code.
Jo Swinson, Minister for Employment Relations and Consumer Affairs, said “we expect fines to be used as a last resort, but the fact that the Adjudicator has the power to impose them will send a strong message to retailers that compliance with the Code is not optional.”
Undoubtedly, this new power will provide the Adjudicator with the backbone needed to ensure compliance with the Code and to fulfil their role effectively.
H&M is the latest retailer to confront its landlords about this ‘two tier retail market’ in an attempt to explore and negotiate more favourable terms.
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Ann Summers is the latest retailer to have entered into new voluntary deals with the majority of their landlords, rather than using the CVA process.
We previously reported on the High Court decision of S Franses Ltd v The Cavendish Hotel (London) Ltd in which it was held that a landlord’s motive could not prevent it from successfully utilising ‘ground (f)’ under s30(1) of the Landlord and Tenant Act 1954 to oppose a lease renewal.
The FCA are encouraged to find that the implementation of the new rules has encouraged financial institutions to manage whistleblowing cases and concerns fairly, consistently and in a manner that protects the individual whistleblower.
Senior Associate
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