Supermarket watchdog one step closer to becoming a reality

11 March 2010

Thank you to everyone who took the time to write to their MP calling for a supermarket ombudsman. The Supermarket Ombudsman Bill is one step closer to becoming law.

The Grocery Market Ombudsman Bill was debated by MPs in parliament for around four hours on Friday 5 March. If passed into law, the proposed Bill would create an ombudsman to monitor supermarkets and enforce the new Groceries Supply Code of Practise.

Campaigners and MPs say that without an ombudsman with proper powers to enforce it (as recommended by the Competition Commission after an exhaustive 2 year investigation) the Code would be ineffective in stopping the British supermarkets from squeezing small producers and continuing to push for lower prices and higher profits.

While there was a vigorous debate inside the main chamber of the House of Commons about the need for an ombudsman, no MP voted against the Bill. The next stage in the process is for the Bill to be examined in detail by a special committee.

Dominic Eagleton, ActionAid Corporates Policy Officer, said: “By voting this bill through, MPs can take the initiative and set up a watchdog that will stop the rot. Not one MP voted against the Bill and this shows cross-party consensus to ensure supermarkets use their market power fairly, we now urge the Government to move quickly and ensure it becomes law.”

There is cross-party support for an ombudsman, but supermarkets are lobbying hard to water it down and we are up against the clock for the legislation to be passed before Parliament dissolves prior to the election.  

By preventing supermarkets from squeezing suppliers unfairly, an Ombudsman would give farmers and workers in poor countries a chance to improve their pay and conditions, whilst protecting quality and choice for British shoppers.

We need an independent, proactive Ombudsman that will allow suppliers to make anonymous complaints and we will be working hard to ensure that this does not fall off the agenda of the new Government.

To find out in detail what went on read the full House of Commons debate.

photo : ©Eric Miller/Panos/ActionAid.

Contact us

Sean Kenny

T: +44 (0)207 561 7636
M: +44 (0)7872 378 251
E: sean.kenny@actionaid.org

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