Amazon is ‘disappointed’ with GCA investigation into supplier payment delays

The Groceries Code Adjudicator is today launching an investigation into online giant Amazon over alleged delay in payments to suppliers. The announcement comes just days before he is due to publish the findings of his latest supplier survey.

The GCA said he had “reasonable grounds” to suspect that Amazon had breached paragraph 5 of the Groceries Code (no delay in payments), between 1 March 2022 to 20 June 2025. This is based on evidence from a range of sources.

Today’s statement from Adjudicator Mark White says the investigation will cover the extent to which paragraph 5 of the code may have been breached; any impact of Amazon’s conduct on suppliers; and the root causes of any issues.

In particular it will focus on the ”nature, extent and impact of practices which may have resulted in delays in payments including 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, with particular focus on the period since 1 January 2024, in order to have the fullest understanding of Amazon’s contemporaneous practices.

Amazon’s track record

Amazon came rock bottom in the GCA’s 2024 survey, with its perceived code compliance score falling from 59% to 47%.

At the time White said he was “monitoring the actions that Amazon is taking”, having warned the company that unless it took “swift and comprehensive action” he would launch his first investigation since taking over as Adjudicator in 2020.

Read more: Amazon problem poses Adjudicator’s ‘biggest ever test’

White, who was appointed in October 2020 and reappointed in May 2024 for a further three-year term, has repeatedly warned that unless Amazon can urgently respond to the concerns, he will launch an investigation.

The Adjudicator has the powers to fine a retailer up to 1% of its annual turnover if it finds the retailer has breached the code.

In December, The Grocer revealed Amazon had carried out a major overhaul of its rules of engagement in a bid to ward off GCA action, including relaunching a supplier dashboard dealing with disputes over “shipment variances” and offering concessions to suppliers over proof of delivery.

‘Disappointed with this decision’ 

White said: “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.

“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.”

In response to the news, an Amazon spokesperson told The Grocer that it takes the Groceries Supply Code of Practice “incredibly seriously” and it will fully cooperate with the Adjudicator as he carries out his investigation.

“While we are disappointed with this decision, we welcome the opportunity to further demonstrate our ongoing compliance with this particular section of the Code,” they continued.

“We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing year-on-year. We will continue to listen and work with our grocery suppliers as we roll out further changes.”

Suppliers welcome the move

Reacting to today’s decision Simply Supply Chain director Jonathan Kittow (who has been spearheading suppliers’ calls for action against the online giant) said: “We’ve been campaigning for this since Amazon first came under the auspices of GSCOP.

“We see this as vindication of all the evidence we’ve been able to share so far.”

David Sables, CEO of Sentinel Management Consultants, said: “It’s absolutely the right decision and should have happened sooner.

“The announcement must come with predictably poor scores to come in the latest survey. Over three years Amazon’s treatment of suppliers have, if anything, got worse.”

John Noble, director of the British Brands Group, added: “Vendors have been concerned for some time about Amazon’s compliance and have been frustrated that its efforts haven’t made a sufficient effect. This investigation is welcomed.”