The NFU has welcomed news that online retailer Amazon will be brought under the jurisdiction of the Groceries Supply Code of Practice (GSCOP).
The Competition and Markets Authority (CMA) announced this week that Amazon will now have to abide by GSCOP rules when it comes to dealing with its supply chain.
The CMA said it had taken into account Amazon’s “increasing activity in the UK groceries’ sector in recent years” in its decision to designate the retailer.
Amazon recently reached the all-important £1 billion from grocery sales needed to qualify.
The US-based firm currently supplies groceries in the UK through two wholly owned subsidiaries: Amazon EU Sarl and Fresh & Wild Limited.
The NFU has welcomed the decision after lobbying efforts for the CMA to annually review the grocery market to ensure organisations like Amazon were included in the GSCOP remit.
"The NFU welcomes the decision as it will mean Amazon will have to alter their trading practices to ensure they comply with GSCOP," the union said.
"Thousands of companies supplying Amazon with groceries are now safeguarded against potential unfair trading practices."
The GSCOP is legislation which came in to protect food and drink suppliers to major supermarkets from being treated unfairly.
To be classed as a designated GSCOP retailer, a company’s UK grocery sales turnover must be greater than £1 billion.
It currently covers, Tesco, Asda, Sainsbury’s, Morrisons, Aldi, Lidl, Co-Op, Marks & Spencer, Waitrose, Iceland, B&M, Ocado, Home bargains, and now Amazon.
Adam Land, senior director at the CMA, said households across the UK were increasingly using Amazon to buy food and other essential items.
"Today’s decision to designate Amazon helps to ensure a level playing field for companies active in the groceries sector as people’s buying habits evolve," he added.
“These rules mean that the thousands of companies supplying Amazon with groceries are now protected from potential unfair business practices.
“We’ll continue to keep a close eye on the sector to make sure all major grocery retailers are bound by the same rules.”
