The Groceries Code Adjudicator (GCA) has said it will launch a formal investigation into Amazon “if appropriate and necessary” to ensure that the retail giant is treating its grocery suppliers “fairly and lawfully.”

Despite recording a general improvement across the grocery market, in its latest annual compliance survey the regulator found that Amazon’s perceived compliance score under the Groceries Supply Code of Practice fell from 59 per cent to 47 per cent.

The code aims to ensure Britain's 14 largest grocery retailers, including Tesco and Marks and Spencer, treat their suppliers fairly.

It restricts firms from making changes to supply contracts at short notice and requires retailers to give an appropriate period of notice if they no longer want to use a supplier. Under the code, retailers must also provide reasons for ending a contract.

Amazon has been subject to the code since 2022.

The GCA told the e-commerce giant that it must take swift and comprehensive action to demonstrably comply with the code.

The watchdog added that it is monitoring any changes made by Amazon, as well as their impact on suppliers to determine whether these measures are sufficient.

“The survey shows clearly that many suppliers do not believe that Amazon is complying with the code,” said Mark White, the groceries code adjudicator. “Amazon must ensure suppliers understand the changes it has made since its designation and in response to these survey results, and make any further changes that are needed to ensure code compliance.”

White continued: “I will not hesitate to launch a formal investigation if appropriate and necessary to ensure Amazon is treating its suppliers fairly and lawfully. I encourage suppliers to continue to confidentially tell me about the issues they are facing with Amazon.”

Retail Systems has reached out to Amazon for comment.

Overall compliance scores across the retailers ranged from 98 per cent to 47 per cent.

Excluding Amazon, average compliance was 94 per cent which was unchanged from the non-Amazon score in 2023.

Co-op and Lidl both experienced a two per cent improvement, the biggest percentage improvement across the 14 Retailers.

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