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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What are the Adjudicator’s reporting requirements?
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Annual report
(1)
After the end of each reporting period the Adjudicator must prepare and
publish a report describing what the Adjudicator has done during the period.
(2)
The report must include a summary of—
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(a)
disputes referred to arbitration under the Groceries Supply Order;
(b)
investigations carried out by the Adjudicator; and
(c)
cases in which the Adjudicator has used the enforcement measures
mentioned in section 6.
(3)
If the Adjudicator has made recommendations under section 7, the report must
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include an assessment of whether they have been followed.
(4)
The report must set out any recommendations that the Adjudicator has made
to the Office of Fair Trading for changes to the Groceries Code.
(5)
As well as publishing the report, the Adjudicator must send a copy to—
(a)
the Secretary of State; and
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(b)
the Office of Fair Trading.
(6)
In this section “reporting period” means—
(a)
the period beginning with the day on which section 1 comes into force
and ending with the following 31 March; and
(b)
each successive period of 12 months.
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How is the Adjudicator supervised?
15
Review of Adjudicator and guidance from Secretary of State
(1)
The Secretary of State must review the Adjudicator’s performance for each
review period.
(2)
The first review period is the period ending on the first 31 March that is at
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least 2 years after section 1 comes into force.
(3)
Subsequent review periods are each successive period of 3 years after the first
review period.
(4)
A review must, in particular—
(a)
consider how much the Adjudicator’s powers have been exercised; and
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(b)
assess how effective the Adjudicator has been in enforcing the
Groceries Code.
(5)
If an order has not yet been made under subsection (10), the review must also
consider whether it would be desirable to make an order under that subsection.
(6)
As soon as practicable after a review period, the Secretary of State must—
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(a)
publish a report of the findings of the review for that period; and
(b)
lay a copy of the report before Parliament.
(7)
In carrying out a review, the Secretary of State must consult—
(a)
the Adjudicator;
(b)
the Competition Commission;
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Groceries Code Adjudicator Bill [HL]
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(c)
the Office of Fair Trading;
(d)
the large retailers;
(e)
one or more persons appearing to the Secretary of State to represent the
interests of suppliers;
(f)
one or more persons appearing to the Secretary of State to represent the
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interests of consumers; and
(g)
any other person the Secretary of State thinks appropriate.
(8)
As a result of the findings of a review, the Secretary of State may give guidance
to the Adjudicator about any matter relating to the Adjudicator’s functions.
(9)
The Adjudicator is to take account of the guidance in carrying out functions.
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(10)
The Secretary of State may by order provide that the following section is to be
inserted after section 4 if, as a result of the findings of a review, the Secretary
of State thinks that it would be desirable to do so—
“4A
Information that may be considered when deciding whether to
investigate
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(1)
In deciding whether to carry out an investigation the Adjudicator may
consider only—
(a)
information provided by a supplier;
(b)
information that is publicly available;
(c)
information provided by a person who obtained the
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information at a time when the person was a worker employed
by the retailer in question or a company in the same group;
(d)
information provided by the retailer in question about whether
it has complied with a recommendation made under section 7.
(2)
When carrying out an investigation the Adjudicator may consider any
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information that it seems appropriate to consider and is not limited to
considering the information mentioned in subsection (1).
(3)
In this section—
“group” has the same meaning as in Part 15 of the Companies Act
2006 (see section 474(1) of that Act);
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“worker” and “employed” have the same meaning as in Part 4A of
the Employment Rights Act 1996 (see sections 43K and 230 of
that Act).”
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Transfer of Adjudicator functions and abolition etc
(1)
The Secretary of State may by order transfer some or all of the Adjudicator’s
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functions to a public body and in deciding whether to do so must take account
of the desirability of—
(a)
increasing efficiency, effectiveness and economy in the exercise of
public functions; and
(b)
ensuring appropriate accountability to Ministers in the exercise of
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public functions.
(2)
The Secretary of State may by order abolish the Adjudicator—
(a)
if, as a result of the findings of a review, the Secretary of State is
satisfied that the Adjudicator has not been sufficiently effective in

Groceries Code Adjudicator Bill [HL]
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enforcing the Groceries Code to justify the continued existence of an
Adjudicator;
(b)
if, as a result of the findings of a review, the Secretary of State is
satisfied that it is no longer necessary for there to be an Adjudicator to
enforce the Groceries Code;
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(c)
if the Secretary of State transfers all of the Adjudicator’s functions
under subsection (1); or
(d)
if the Groceries Supply Order is revoked and not replaced.
(3)
An order under subsection (2) may include provision transferring the
Adjudicator’s property, rights and liabilities.
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(4)
The Secretary of State may by order amend this Act in consequence of any
order amending or replacing the Groceries Supply Order.
(5)
For the purpose of giving effect to a transfer of functions or to the abolition of
the Adjudicator an order under this section may amend or repeal this Act or
any other enactment.
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Information to Secretary of State
(1)
The Secretary of State may require the Adjudicator to provide information to
assist the Secretary of State in carrying out functions under this Act.
(2)
The requirement to provide information to the Secretary of State does not
override section 18.
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How does the Adjudicator handle information?
18
Confidentiality
(1)
The Adjudicator may not make an unauthorised disclosure of information
relating to an arbitration under the Groceries Supply Order or under a supply
agreement if—
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(a)
the information identifies a party to the arbitration; or
(b)
the Adjudicator thinks that the identity of a party to the arbitration
could be deduced from it.
(2)
The Adjudicator may not make an unauthorised disclosure of information that
the Adjudicator thinks might cause someone to think that a particular person
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has complained about a large retailer failing to comply with the Groceries
Code.
(3)
For the purposes of this section a disclosure of information is unauthorised
unless—
(a)
the Adjudicator has obtained the required consent;
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(b)
the disclosure is required for the purpose of an EU obligation; or
(c)
the disclosure is required, under rules of court or a court order, for the
purposes of legal proceedings of any description.
(4)
The required consent is—
(a)
in the case of information to which subsection (1) applies, the consent
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of the parties to the arbitration;
(b)
in the case of information to which subsection (2) applies, the consent
of the person.

Groceries Code Adjudicator Bill [HL]
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(5)
The prohibitions contained in this section are in addition to any that apply by
virtue of Part 9 of the Enterprise Act 2002.
How is the Adjudicator funded?
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Levy funding
(1)
The Adjudicator may require large retailers to pay a levy towards the
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Adjudicator’s expenses.
(2)
Before imposing a levy the Adjudicator must obtain the Secretary of State’s
consent.
(3)
In deciding the amount of a levy the Adjudicator must take into account any
sums received or expected to be received from other sources.
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(4)
The Adjudicator may take into account estimated as well as actual expenses.
(5)
The amount of a levy must be the same for each large retailer, unless an order
made by the Secretary of State is in force conferring power on the Adjudicator
to require large retailers to pay different amounts based on criteria broadly
intended to reflect the expense and time that the Adjudicator expects (in the
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light of previous experience) to spend in dealing with matters relating to
different retailers.
(6)
The Adjudicator must inform each large retailer of —
(a)
the amount of any levy payable by the retailer; and
(b)
when payments are due.
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(7)
A levy required to be paid under this section is recoverable by the Adjudicator
as a debt.
(8)
The Adjudicator must publish details of levies and an explanation of how the
amounts have been decided.
(9)
If the Adjudicator has a surplus, the Adjudicator may repay some or all of it to
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the large retailers.
(10)
In subsection (9) “surplus” means money held by the Adjudicator at the end of
a financial year less—
(a)
liabilities shown in the Adjudicator’s statement of accounts for that
financial year; and
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(b)
the total amount of any grants made by the Secretary of State under
section 20 during that financial year or earlier ones.
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Payments by Secretary of State
(1)
The Secretary of State may make grants or loans to the Adjudicator.
(2)
The grants or loans may be subject to conditions (including conditions as to
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repayment with or without interest).