// The Groceries Code Adjunctor has launched a probe into Tesco’s new fulfilment fees policy over concerns it breaches GSCOP guidelines
// Tesco has promised its suppliers will not be delisted if suppliers refuse to pay new fulfilment fees
Tesco has said that none of its suppliers will be delisted if they refuse to agree to its new fulfilment fees.
Groceries Code Adjudicator Mark White told The Grocer a probe had been launched into the supermarket giant over concerns it’s new policy was in breach of the Groceries Supply Code of Practice (GSCOP)
Last week, Tesco wrote to its suppliers about its plans to introduce a new fulfilment fee and warned those who don’t comply could face the threat of range reviews or reduced prices.
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White said the letter raised concerns on whether it was a “pay to stay” request, which is banned under the GSCOP guidelines, and if it breaks the code of treating suppliers fairly.
“Whenever one of my retailers makes a change that could potentially affect or does affect suppliers, I engage with that retailer to make sure it doesn’t fall foul of the code,” he told the publication.
“That’s all part of my collaborative approach and that’s exactly what I have been doing, and will continue to do, in response to this proposed introduction of fulfilment fees.”
White went on to say that Tesco had assured him the fulfilment fee was voluntary and that suppliers can opt in.
He added: “Tesco has told me no one will be delisted if they refuse to agree or refuse to negotiate.”
White has asked suppliers to come forward if they have evidence Tesco may have been in breach of GSCOP.