Amazon.com Inc. (AMZN) could be facing a formal investigation in the United Kingdom if it does not improve its treatment of suppliers, as per the country's grocery regulator.
Despite some progress in the overall treatment of suppliers, Amazon's compliance score, as perceived by suppliers, dropped from 59% to 47%.
The Groceries Code Adjudicator (GCA) has cautioned Amazon that it must undertake swift and comprehensive measures to demonstrably comply with the Grocery Supply Code of Practice. The GCA is closely observing the adjustments Amazon is making and their impact on suppliers to assess their adequacy.
Mark White, the Groceries Code Adjudicator, commented: "I am encouraged to see improvements in retailers' treatment of suppliers across various issues, including the management of cost price increase requests, as well as the resolution of invoice discrepancies and data entry errors."
"However, the survey clearly indicates that many suppliers do not believe Amazon is adhering to the Code. Amazon needs to ensure that suppliers understand the changes implemented since its designation and in response to these survey results, and must make any further adjustments necessary to ensure full compliance with the Code."
"I will not hesitate to initiate a formal investigation if it becomes appropriate and necessary to ensure Amazon treats its suppliers fairly and lawfully."
This development follows the GCA's release of its annual survey into compliance with the Grocery Supply Code of Practice, which evaluates how well retailers manage their supplier relationships.
