UK Regulator Investigates Amazon Over Supplier Payment Practices, Retail Stays Wary

The United Kingdom’s groceries watchdog announced Friday that it has opened a formal inquiry into Amazon.com, Inc. (AMZN) to determine whether the American e-commerce giant failed to comply with rules requiring timely payments to suppliers. 

The Groceries Code Adjudicator (GCA) stated it has reason to believe Amazon may have breached paragraph 5 of the Groceries Supply Code of Practice, which sets standards for prompt supplier compensation, between March 2022 and June 2025.

The probe will examine whether Amazon’s actions, such as receipt of goods, payment processes, deduction handling, and using settlement discussions in supplier negotiations, constitute breaches of paragraph 5. 

It will also assess the impacts on suppliers and uncover underlying causes, particularly from January 2024 forward.

Following complaints from suppliers, Adjudicator Mark White called on Amazon in 2024 to bring its practices into line with the Groceries Code swiftly. 

Although the company implemented some changes, ongoing reports from suppliers prompted the GCA to launch the current inquiry, which is centered on delayed payments.

The GCA has been made aware of other potential breaches of the Code and continues to work with Amazon on those matters. The regulator has indicated it will not hesitate to open new investigations if necessary. 

The GCA has encouraged suppliers and relevant parties to participate in its evidence-gathering process by submitting their experiences. All responses will be treated as confidential, and no supplier will be identified without permission. 

The GCA may cite evidence anonymously in its final report and could follow up with respondents for additional details if needed.

On Stocktwits, retail sentiment towards Amazon remained in ‘bearish’ territory with ‘low’ message volume.

Amazon stock has lost over 3% year-to-date and gained over 14% in the last 12 months.

Also See: Centrus Energy Secures 1-Year Extension To Supply DOE With Uranium, Draws Retail Praise

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