Groceries Code Adjudicator Bill [HL]

Session 2012 - 13
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Other Bills before Parliament

Groceries Code Adjudicator Bill [HL]

Groceries Code Adjudicator Bill [HL]
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A
Bill
To
Set up a Groceries Code Adjudicator with the role of enforcing the Groceries
Code and encouraging compliance with it.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Introduction
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The Adjudicator
There is to be a Groceries Code Adjudicator (see Schedule 1).
How does the Adjudicator arbitrate disputes?
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Arbitration
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(1)
If a supplier refers a dispute to arbitration under the Groceries Supply Order,
the Adjudicator must either—
(a)
arbitrate the dispute; or
(b)
appoint another person to arbitrate.
(2)
If a large retailer refers a dispute to arbitration under a supply agreement, the
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Adjudicator may accept appointment as the arbitrator.
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Information about arbitration
(1)
If the Adjudicator appoints another person as arbitrator under section 2(1)(b),
the Adjudicator may require the arbitrator, or a party to the dispute, to provide
information to assist the Adjudicator in carrying out functions under this Act.
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(2)
The Adjudicator may enforce the requirement to provide information by
bringing civil proceedings to obtain—
(a)
in England and Wales or Northern Ireland, an injunction; or

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Groceries Code Adjudicator Bill [HL]
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(b)
in Scotland, an order for specific performance under section 45 of the
Court of Session Act 1988.
How does the Adjudicator carry out investigations and enforce their findings?
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Investigations
(1)
The Adjudicator may investigate whether a large retailer has broken the
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Groceries Code if the Adjudicator has reasonable grounds to suspect that—
(a)
the retailer has broken the Code; or
(b)
the retailer has failed to follow a recommendation made under
section 7.
(2)
For powers to require a person to provide information, see Schedule 2.
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(3)
The Adjudicator may not carry out an investigation until the guidance
required by section 12(1) has been published.
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Investigation reports
(1)
Following an investigation the Adjudicator must—
(a)
publish a report on the outcome of the investigation; and
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(b)
consider whether to use any of the enforcement powers mentioned in
section 6.
(2)
An investigation report must, in particular, specify—
(a)
any findings that the Adjudicator has made; and
(b)
any action that the Adjudicator has taken or proposes to take.
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(3)
It is not necessary for an investigation report to identify the retailer concerned.
(4)
If a retailer is identified in a report, the retailer must have been given a
reasonable opportunity to comment on a draft of the report before publication.
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Investigations: forms of enforcement
If, as a result of an investigation, the Adjudicator is satisfied that a large retailer
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has broken the Groceries Code, the Adjudicator may take one or more of the
following enforcement measures—
(a)
make recommendations;
(b)
require information to be published;
(c)
impose financial penalties.
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Investigations: enforcement using recommendations
(1)
If the Adjudicator chooses to enforce through making recommendations, that
means recommending what the large retailer should do in order to comply
with the Groceries Code.
(2)
The Adjudicator must monitor whether a recommendation has been followed.
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(3)
For powers to require a person to provide information, see Schedule 2.

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Investigations: enforcement using requirements to publish information
(1)
If the Adjudicator chooses to enforce through requiring information to be
published, that means requiring the large retailer to publish information
relating to the investigation.
(2)
The publication requirement is imposed by giving written notice to the large
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retailer specifying—
(a)
what information is to be published;
(b)
how it must be published; and
(c)
the time by which it must be published.
(3)
The Adjudicator may enforce the requirement to publish information by
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bringing civil proceedings to obtain—
(a)
in England and Wales or Northern Ireland, an injunction or any other
appropriate remedy or relief; or
(b)
in Scotland, an order for specific performance under section 45 of the
Court of Session Act 1988 or any other appropriate remedy or relief.
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9
Investigations: enforcement using financial penalties
(1)
The Adjudicator may enforce through imposing financial penalties only if an
order made by the Secretary of State is in force authorising the Adjudicator to
do so (see Schedule 3).
(2)
If the Adjudicator chooses to use this method of enforcement, that means
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imposing a financial penalty on the large retailer.
(3)
The financial penalty is imposed by giving the large retailer written notice
specifying—
(a)
the grounds for imposing the penalty;
(b)
the amount of the penalty; and
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(c)
the period within which it must be paid.
(4)
The large retailer may appeal against the imposition of a financial penalty or
its amount—
(a)
to the High Court, in England and Wales or Northern Ireland; or
(b)
to the Court of Session, in Scotland.
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(5)
Financial penalties under this section are recoverable by the Adjudicator as a
debt.
(6)
Financial penalties received by the Adjudicator must be paid into the
Consolidated Fund.
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Recovery of investigation costs
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(1)
The Adjudicator may require a large retailer to pay some or all of the costs of
an investigation (including any costs incurred in exercising the enforcement
powers) if satisfied that the retailer has breached the Groceries Code.
(2)
The Adjudicator may require a person to pay some or all of the costs of an
investigation if the Adjudicator carried out the investigation as a result of a
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complaint by the person which, the Adjudicator is satisfied, was vexatious or
wholly without merit.

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(3)
A requirement to pay costs is imposed by giving written notice specifying—
(a)
the grounds for imposing the requirement to pay costs;
(b)
how much is to be paid; and
(c)
by when the costs are to be paid.
(4)
A person required to pay costs under this section may appeal against the
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imposition of the requirement or the amount to which it relates—
(a)
to the High Court, in England and Wales or Northern Ireland; or
(b)
to the Court of Session, in Scotland.
(5)
Costs required to be paid under this section are recoverable by the Adjudicator
as a debt.
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What advice, guidance and recommendations does the Adjudicator give?
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Advice
The Adjudicator may give advice on any matter relating to the Groceries Code
to suppliers or large retailers.
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Guidance
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(1)
The Adjudicator must publish guidance about—
(a)
the criteria that the Adjudicator intends to adopt in deciding whether
to carry out investigations;
(b)
the practices and procedures that the Adjudicator intends to adopt in
carrying out investigations; and
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(c)
the criteria that the Adjudicator intends to adopt in choosing whether
to use the enforcement powers and which ones.
(2)
In addition, the Adjudicator may publish guidance about the practices and
procedures that the Adjudicator intends to adopt in carrying out other
functions.
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(3)
The Adjudicator may publish guidance about—
(a)
the application of any provision of the Groceries Code;
(b)
steps that large retailers need to take in order to comply with the
Groceries Code;
(c)
any other matter relating to the Groceries Code.
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(4)
Before publishing guidance under this section the Adjudicator must consult
any persons he or she thinks appropriate.
(5)
The Adjudicator must publish the first guidance under subsection (1)(a), (b)
and (c) within 6 months beginning with the day on which section 1 comes into
force.
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(6)
Where there is any guidance in force under this section, the Adjudicator must
take account of it in carrying out functions.
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Recommendations to Office of Fair Trading
If the Adjudicator considers it appropriate for any changes to be made to the
Groceries Code, he or she must recommend them to the Office of Fair Trading.
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