Amazon lags in latest UK compliance test and is threatened with investigation over poor treatment of suppliers
Amazon.com Inc. could face a formal investigation in the U.K. if it fails to improve the way it treats its suppliers, according to the country’s grocery regulator.
Less than half of Amazon suppliers responding to Groceries Code Adjudicator’s annual survey believe the online retailer always or almost always complies with the watchdog’s code of practice.
Amazon came last out of the 14 retailers subject to the regulation, with a compliance score of 47%, down 12 percentage points from a year earlier. This compares with 98% for the Co-op, which topped the latest list.
“The survey clearly shows that many suppliers do not believe Amazon is following the rules,” Grocery Rules Adjudicator Mark White said in a statement. “I will not hesitate to launch a formal investigation if appropriate and necessary to ensure Amazon is treating its suppliers fairly and lawfully.”
The regulator’s code requires retailers to pay suppliers on time and compensate for forecast errors, among other commitments.
Amazon said it has taken steps to improve supplier relationships and plans further changes, including faster resolution of financial disputes.
“We are disappointed with these results and are committed to improving them,” the retailer said in an emailed statement.
