The GCA (Groceries Code Adjudicator) has published a set of ‘golden rules’ based on examples of good practice, aimed at ensuring that retailers manage these discussions fairly, transparently and in line with the GSCOP (Groceries Supply Code of Practice).
These rules are designed to support a fair, and respectful approach and to help suppliers understand what good practice looks like during CPI negotiations.
The golden rules: What retailers should be doing
The GCA’s guidance sets out seven clear expectations for retailers when dealing with CPI requests:
- Clear communication from the outset about the process and how long it will take.
- Awareness of the greater impact on smaller suppliers, with appropriate prioritisation.
- Support for buyers from colleagues experienced in handling CPI discussions.
- Only requesting the specific information needed to make a decision – no unnecessary data demands.
- Clear communication of the outcome, avoiding any ambiguity.
- No automatic delists or fixed delist notice periods as a result of CPI negotiations.
- Strict compliance with competition law, including never asking suppliers about other retailers’ plans or retail prices.
These principles reinforce the standards retailers must uphold under GSCOP and provide suppliers with clarity about what they should expect from a compliant process.
The golden rules serve as an important reminder that retailers have clear responsibilities when handling CPI requests. Suppliers should feel confident that there are established standards in place, and that they can raise concerns if those standards are not met.
NFU asks
We are calling on the government to incorporate the GCA’s seven ‘golden rules’ into the GSCOP to address unfair trading practices around cost price negotiations.
Raising concerns
Producers should come forward if they have concerns about how their requests are being handled, particularly if they believe a retailer may be in breach of the Code. Early reporting helps the GCA identify issues, intervene where necessary and maintain a fair-trading environment.
Find out more about the complaints procedure on GOV.UK.
Fairness and transparency
During this difficult time, when farmers and growers are facing volatile input costs and availability pressures, the NFU believes it is vital to have a supply chain that is genuinely supportive, assisting businesses to navigate the current challenges, while ensuring all parties act in a fair and transparent way.
