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New powers for the Grocery Code Adjudicator

new powers for the Grocery Code Adjudicator

7 December 2012

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.

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Service charges – the bad news keeps coming for tenants!

A few months ago, we discussed a case where the Court of Appeal ruled that the wording of a lease precluded the tenant from arguing that certain costs should not have been included in the service charge calculation. A recent high-profile case concerns a broadly similar issue, this time in relation to the proportion of the landlord’s costs payable by a tenant.

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