OFT criticised over supermarket code

The BPIF has complained to the Office of Fair Trading (OFT) about the draft of the supermarkets Code of Practice, which has not entirely scrapped the third-party rebate scheme

The BPIF has complained to the Office of Fair Trading (OFT) about the draft of the supermarkets Code of Practice, which has not entirely scrapped the third-party rebate scheme.


The draft was drawn up in consultation with supermarkets that had more than 8% market share after the Competition Commission stipulated that an official code should be set up to improve relations between supermarkets and suppliers.


BPIF director of corporate affairs Mike Hopkins. believed that many clauses in the code such as the one concerning the third-party rebate scheme (PrintWeek, 13 October 2000) were qualified with clauses that in effect placed supermarkets in the stronger position.


During the formulation of the draft, the BPIF had offered its assistance, which had been refused as it was not "part of the process".


The OFT said it could not respond to all of the 100 trade associations or "the timetable would fall apart".


Hopkins also criticised the OFT for taking four and a half months to "deliberate" about the draft, when suppliers were subsequently only given three weeks to respond.


"This is quite a normal timescale," said an OFT spokeswoman. "And we have been flexible. We have granted extensions, especially given the foot and mouth disease which has affected suppliers."


But British Carton Association chairman John Hilton said: "Its as if we were being asked for our input as an after-thought." He also believed that the time frame for a response was "disappointing".


He said that because packaging companies were among many suppliers, it would be hard for the industry to make its views clear.


"At least the cartonboard industry was asked to make a contribution, but Im not 100% sure if this will make any difference," he said.


The OFT is looking at suppliers responses and will report these comments to trade and industry secretary Stephen Byers by the end of April.


The BPIF is awaiting a response from the OFT before deciding what action to take.


Story by Jeremy Allen