The Groceries Code Adjudicator (GCA) has launched a targeted investigation into whether Amazon has breached the Groceries Code.
GCA stated that it suspected Amazon had breached paragraph five of the code, which states that “a retailer must pay a supplier for groceries delivered to that retailer’s specification in accordance with the relevant Supply Agreement and, in any case, within a reasonable time after the date of the supplier’s invoice”.
Based on evidence from a “range of sources”, GCA suspected the breaches took place from 1st March 2022 to 20th June 2025.
Having previously heard from suppliers reporting code issues, the adjudicator, Mark White, told Amazon in 2024 that it must take “swift and comprehensive action” to demonstrably comply with the code.
The GCA then monitored actions taken by Amazon and heard further evidence about experiences with Amazon. Based on this evidence, said GCA, it was clear that an investigation into compliance with paragraph five of the Groceries Code specifically was required.
“The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate.”
The investigation will cover the extent to which paragraph five of the code may have been breached; any impact of Amazon’s conduct on suppliers; and the root causes of any issues. In particular, it will focus on the nature, extent and impact of practices that may have resulted in delays in payments, including Amazon’s receipt of goods and payment processes, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers.
The investigation will cover the period between Amazon’s designation (1st March 2022) and 20th June 2025 but will focus on the period since 1st January 2024, in order to have the “fullest understanding of Amazon’s contemporaneous practices”.
Mark White, the adjudicator, stated: “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.
“I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources. It will allow me to determine whether Amazon has breached paragraph 5 of the Groceries Code and the root cause of any breach.
“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.”
Amazon “disappointed” with GCA decision
An Amazon spokesperson said: “Amazon takes the Groceries Supply Code of Practice incredibly seriously and we will cooperate fully with the adjudicator as he carries out his investigation.
“While we are disappointed with this decision, we welcome the opportunity to further demonstrate our ongoing compliance with this particular section of the Code.
“We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing year-on-year. We will continue to listen and work with our grocery suppliers as we roll out further changes.”
The GCA has also received information about other issues at Amazon, and said it would be continuing to engage with Amazon as part of its “ongoing collaborative approach” and expects Amazon to take action to address these issues.
The adjudicator has called for direct suppliers and other stakeholders to respond to the GCA’s call for evidence to share experiences of supplying Amazon. The call for evidence will close on 8th August 2025.
