Industry supports OFT's Code review

Industry bodies have welcomed possible moves by the Office of Fair Trading (OFT) to encourage suppliers to speak out anonymously over the supermarket code of conduct.

The OFT is currently reviewing comments put forward by trade bodies and suppliers following the publication of its audit of the supermarkets' relationship with suppliers. That report was branded a "whitewash" by several parties.

According to press reports, the OFT's review could result in the complaints procedure being made anonymous to encourage suppliers to talk.

"If this is the case, then I absolutely welcome it," said BPIF Cartons president John Monks. "It would be an opportunity for people to report incidents of unfairness in a neutral way."

Monks added that currently suppliers are afraid to voice concerns about the code because of fears of reprisals by supermarkets.

The Packaging Federation chief executive Ian Dent has written to the OFT arguing that with the fear of reprisals "suppliers are therefore
left with a kamikaze situation on which the OFT should have taken some positive action by now".

He added that the code should take on the Australian model because it is participative and "not one-sided, as the UK code is often seen as for the benefit of retailers only".

"In Australia they appoint their own ombudsman and give suppliers more of a protective barrier," said Dent.

BPIF deputy chief executive Cicely Brown added that it could be viewed as "unfair" for supermarkets to be challenged by unknown sources.

"This issue needs to be kept in the public domain as supermarkets care more about the public perception of them," she added.

Story by Philip Chadwick