The GCA says it has reasonable grounds to suspect that Amazon has breached paragraph 5 of the Code (No delay in Payments).
Paragraph 5 of the Code: No delay in Payments, states that:
“A Retailer must pay a Supplier for Groceries delivered to that Retailer’s specification in accordance with the relevant Supply Agreement, and, in any case, within a reasonable time after the date of the Supplier’s invoice.”
The investigation is off the back of evidence the GCA received from a range of sources and will cover the extent to which this section of the code may have been breached, along with any impact of Amazon’s conduct on suppliers, and the root causes of any issues.
Particular attention will be given to the nature, extent and impact of practices which may have resulted in delays in payments. This includes Amazon’s receipt of goods and payment processes, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers.
The investigation will cover the period between Amazon’s designation (1 March 2022) and 20 June 2025 but will focus on the period since 1 January 2024. The GCA has said this will provide it with the fullest understanding of Amazon’s contemporaneous practices.
“Delays in payment can significantly harm suppliers. The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,” the Adjudicator Mark White said.
“I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources. It will allow me to determine whether Amazon has breached paragraph 5 of the Groceries Code and the root cause of any breach.
“I encourage all direct suppliers and other stakeholders to respond to my call for evidence and provide information about your experiences with Amazon. All responses will be completely confidential.”
Last year, the GCA told Amazon that it must take swift and comprehensive action to demonstrably comply with the Code. This came as the company’s perceived Code compliance score fell from 59% to 47%, despite the GCA noting overall improvement in the treatment of suppliers.
The GCA has been monitoring actions taken by Amazon and heard further detailed evidence about experiences with the company. Based on this evidence, the GCA said it was clear that an investigation into compliance with paragraph 5 of the Groceries Code specifically was required.
‘Won’t hesitate to launch further investigation’
The GCA has also received information about other issues at Amazon.
It is continuing to engage with Amazon as part of its ongoing collaborative approach and expects Amazon to take action to address these issues.
If a further investigation is necessary to resolve these issues, the GCA says it will not hesitate to launch one.
Next steps
The Adjudicator has called for direct suppliers and other stakeholders to respond to the GCA’s call for evidence to share experiences of supplying Amazon.
Submissions may be made by completing the GCA’s confidential questionnaire, or on paper or in electronic form submitted to the GCA.
The call for evidence will close on 8 August 2025. The GCA says all responses to the call for evidence will be treated as completely confidential.
Amazon has been approached for comment.
