# Groceries Code Adjudicator Act 2013

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U.K.

# Groceries Code Adjudicator Act 2013

# 2013 CHAPTER 19

An Act to set up a Groceries Code Adjudicator with the role of enforcing the Groceries Code and encouraging compliance with                        it.                     

[25th April 2013]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons,                           in this present Parliament assembled, and by the authority of the same, as follows:—                        

## IntroductionU.K.

### 1The AdjudicatorU.K.

A Groceries Code Adjudicator is established (see Schedule 1).

## How does the Adjudicator arbitrate disputes?U.K.

### 2ArbitrationU.K.

(1)If a supplier refers a dispute to arbitration under the Groceries Supply Order, the Adjudicator must either—                  

(a)arbitrate the dispute; or                  

(b)appoint another person to arbitrate.                  

(2)If a large retailer refers a dispute to arbitration under a supply agreement, the Adjudicator may accept appointment as the                        arbitrator.                  

### 3Information about arbitrationU.K.

(1)If the Adjudicator appoints another person as arbitrator under section 2(1)(b), the Adjudicator may require the arbitrator,                        or a party to the dispute, to provide information to assist the Adjudicator in carrying out functions under this Act.                  

(2)The Adjudicator may enforce the requirement to provide information by bringing civil proceedings to obtain—                  

(a)in England and Wales or Northern Ireland, an injunction; or                  

(b)in Scotland, an order for specific performance under section 45 of the Court of Session Act 1988.                  

## How does the Adjudicator carry out investigations and enforce their findings?U.K.

### 4InvestigationsU.K.

(1)The Adjudicator may investigate whether a large retailer has broken the Groceries Code if the Adjudicator has reasonable grounds                        to suspect that—                  

(a)the retailer has broken the Code; or                  

(b)the retailer has failed to follow a recommendation made under section 7.                  

(2)For powers to require a person to provide information, see Schedule 2.                  

(3)The Adjudicator may not carry out an investigation until the guidance required by section 12(1) has been published.                  

### 5Investigation reportsU.K.

(1)Following an investigation the Adjudicator must—                  

(a)publish a report on the outcome of the investigation; and                  

(b)consider whether to use any of the enforcement powers mentioned in section 6.                  

(2)An investigation report must, in particular, specify—                  

(a)any findings that the Adjudicator has made;                  

(b)any action that the Adjudicator has taken or proposes to take; and                  

(c)the reasons for the findings and any action taken or proposed.                  

(3)It is not necessary for an investigation report to identify the retailer concerned.                  

(4)If a retailer is identified in a report, the retailer must have been given a reasonable opportunity to comment on a draft                        of the report before publication.                  

### 6Investigations: forms of enforcementU.K.

If, as a result of an investigation, the Adjudicator is satisfied that a large retailer has broken the Groceries Code, the                     Adjudicator may take one or more of the following enforcement measures—                  

(a)make recommendations;                  

(b)require information to be published;                  

(c)impose financial penalties.                  

### 7Investigations: enforcement using recommendationsU.K.

(1)If the Adjudicator chooses to enforce through making recommendations, that means recommending what the large retailer should                        do in order to comply with the Groceries Code.                  

(2)The Adjudicator must monitor whether a recommendation has been followed.                  

(3)For powers to require a person to provide information, see Schedule 2.                  

### 8Investigations: enforcement using requirements to publish informationU.K.

(1)If the Adjudicator chooses to enforce through requiring information to be published, that means requiring the large retailer                        to publish information relating to the investigation.                  

(2)The publication requirement is imposed by giving written notice to the large retailer specifying—                  

(a)what information is to be published;                  

(b)how it must be published; and                  

(c)the time by which it must be published.                  

(3)The Adjudicator may enforce the requirement to publish information by bringing civil proceedings to obtain—                  

(a)in England and Wales or Northern Ireland, an injunction or any other appropriate remedy or relief; or                  

(b)in Scotland, an order for specific performance under section 45 of the Court of Session Act 1988 or any other appropriate                        remedy or relief.                  

### 9Investigations: enforcement using financial penaltiesU.K.

(1)If the Adjudicator chooses to enforce through imposing financial penalties, that means imposing a penalty on the large retailer                        of an amount not exceeding the amount of the permitted maximum (see subsection (6)).                  

(2)The financial penalty is imposed by giving the large retailer written notice specifying—                  

(a)the grounds for imposing the penalty;                  

(b)the amount of the penalty;                  

(c)the period within which it must be paid; and                  

(d)how it must be paid.                  

(3)The large retailer may appeal against the imposition of a financial penalty or its amount—                  

(a)to the High Court, in England and Wales or Northern Ireland; or                  

(b)to the Court of Session, in Scotland.                  

(4)Financial penalties under this section are recoverable by the Adjudicator as a debt.                  

(5)Financial penalties received by the Adjudicator must be paid into the Consolidated Fund.                  

(6)The Secretary of State must make an order—                  

(a)specifying the amount of the permitted maximum, or                  

(b)specifying how that amount is to be determined.                  

(7)The Adjudicator must, within 6 months beginning with the day on which section 1 comes into force, make a recommendation as                        to the amount that should be specified in the first order under subsection (6) or the method for determining the amount.                  

(8)Before making a recommendation the Adjudicator must consult any person he or she thinks appropriate.                  

(9)The Secretary of State—                  

(a)must have regard to the Adjudicator's recommendation when making the first order under subsection (6);                  

(b)may amend or replace an order under subsection (6) only if the Secretary of State has considered whether to do so as part                        of a review under section 15.                  

(10)The Adjudicator may not impose a financial penalty in respect of a breach of the Groceries Code that occurs before the first                        order under subsection (6) comes into force.                  

### 10Recovery of investigation costsU.K.

(1)The Adjudicator may require a large retailer to pay some or all of the costs of an investigation (including any costs incurred                        in exercising the enforcement powers) if satisfied that the retailer has broken the Groceries Code.                  

(2)The Adjudicator may require a person to pay some or all of the costs of an investigation if the Adjudicator carried out the                        investigation as a result of a complaint by the person which, the Adjudicator is satisfied, was vexatious or wholly without                        merit.                  

(3)A requirement to pay costs is imposed by giving written notice specifying—                  

(a)the grounds for imposing the requirement to pay costs;                  

(b)how much is to be paid; and                  

(c)by when the costs are to be paid.                  

(4)A person required to pay costs under this section may appeal against the imposition of the requirement or the amount to which                        it relates—                  

(a)to the High Court, in England and Wales or Northern Ireland; or                  

(b)to the Court of Session, in Scotland.                  

(5)Costs required to be paid under this section are recoverable by the Adjudicator as a debt.                  

## What advice, guidance and recommendations does the Adjudicator give?U.K.

### 11AdviceU.K.

### 12GuidanceU.K.

### 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## What are the Adjudicator's reporting requirements?U.K.

### 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## How is the Adjudicator supervised?U.K.

### 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 16Transfer of Adjudicator functions and abolition etcU.K.

### 17Information to Secretary of StateU.K.

## How does the Adjudicator handle information?U.K.

### 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## How may the Adjudicator be funded?U.K.

### 19Levy fundingU.K.

(1)The Adjudicator may require the specified retailers to pay a levy towards the 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.                  

(4)The Adjudicator may take into account estimated as well as actual expenses.                  

(5)The Adjudicator may require different specified retailers to pay different amounts of levy but any differences must be based                        on criteria broadly intended to reflect the expense and time that the Adjudicator expects (in the light of previous experience)                        to spend in dealing with matters relating to different specified retailers and any subsidiaries.                  

(6)The Adjudicator must inform each specified retailer of —                  

(a)the amount of any levy payable by the retailer; and                  

(b)when payments are due.                  

(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 (including any criteria                        under subsection (5)).                  

(9)If the Adjudicator has a surplus, the Adjudicator may repay some or all of it to the specified retailers.                  

(10)In this section—                  
          -  “specified retailer” means a retailer mentioned in Article 4(1)(a) or (b) of the Groceries Supply Order;                         
          -  “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
(b)
the total amount of any grants made by the Secretary of State under section 20 during that financial year or earlier ones.
 

### 20Payments by Secretary of StateU.K.

(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 repayment with or without interest).                  

## Amendments and transitionU.K.

### 21Amendments and transitionU.K.

#### *Parliamentary Commissioner Act 1967 (c. 13)*

(1)In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc subject to investigation) at the appropriate place                        insert— “ Groceries Code Adjudicator. ”                  

#### *House of Commons Disqualification Act 1975 (c. 24)*

(2)In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices) at the appropriate                        place insert— “ Groceries Code Adjudicator or Deputy Groceries Code Adjudicator. ”                  

#### *Freedom of Information Act 2000 (c. 36)*

(3)In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities) at the appropriate place insert— “ Groceries Code Adjudicator. ”                  

#### *Enterprise Act 2002 (c. 40)*

(4)In each of Schedules 14 and 15 to the Enterprise Act 2002 (provisions about disclosure of information) at the appropriate                        place insert— “ Groceries Code Adjudicator Act 2013. ”                  

(5)Section 161(5) of the Enterprise Act 2002 (limitation on variation or revocation of orders) does not apply to a variation                        of the Groceries Supply Order made in consequence of the Arbitration (Scotland) Act 2010 or this Act.                  

#### *Arbitration (Scotland) Act 2010 (asp 1)*

(6)Until the Arbitration (Scotland) Act 2010 is in force in relation to any arbitrations carried out by the Adjudicator, or a                        person appointed by the Adjudicator, that Act applies as if it were in force in relation to those arbitrations.                  

## Definitions and final provisionsU.K.

### 22DefinitionsU.K.

In this Act—
          -  “the Adjudicator” means the Groceries Code Adjudicator;                         
          -  “direct supplier” means a person who is a supplier within the meaning given by Article 2 of the Groceries Supply Order;                         
          -  “dispute” has the meaning given by Article 2 of the Groceries Supply Order;                         
          -  “financial year” 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;
 
          -  “Groceries Code” means the code of practice set out in Schedule 1 to the Groceries Supply Order;                         
          -  “Groceries Supply Order” means the Groceries (Supply Chain Practices) Market Investigation Order 2009, made by the Competition Commission under section                           161 of the Enterprise Act 2002;                         
          -  “indirect supplier” means a person who would be a supplier within the meaning given by Article 2 of the Groceries Supply Order but for the reference                           to direct supply;                         
          -  “large retailer” means a designated retailer as defined by Article 2 of the Groceries Supply Order or a subsidiary of a designated retailer;                         
          -  “supplier” means—                          (a)
a direct supplier; or
(b)
an indirect supplier;
 
          -  “supply agreement” has the meaning given by Article 2 of the Groceries Supply Order.                         

### 23OrdersU.K.

(1)Orders under this Act are to be made by statutory instrument.                  

(2)A statutory instrument containing an order under section 9(6), 15(11) or 16(1) or (2)(a) or (b) may not be made unless a draft                        of the instrument has been laid before and approved by a resolution of each House of Parliament.                  

(3)Any other statutory instrument under this Act, other than one that contains only an order under section 25, is subject to                        annulment as an instrument to which section 5(1) of the Statutory Instruments Act 1946 applies.                  

(4)Orders under this Act may include measures that are consequential, supplementary, incidental, transitional or transitory.                  

### 24ExtentU.K.

This Act extends to—

(a)England and Wales;                  

(b)Scotland; and                  

(c)Northern Ireland.                  

### 25CommencementU.K.

(1)Sections 1 to 21 and the Schedules come into force on whatever day the Secretary of State by order appoints.                  

(2)The other provisions of this Act come into force on the day on which this Act is passed.                  

(3)An order under subsection (1) may make different provision for different purposes.                  

### 26Short titleU.K.

This Act may be cited as the Groceries Code Adjudicator Act 2013.

# SCHEDULES

 Section 1

## SCHEDULE 1U.K.The Adjudicator

### StatusU.K.

1U.K.The Adjudicator is a corporation sole.

2U.K.The Adjudicator carries out functions on behalf of the Crown.

### AppointmentU.K.

3U.K.The Adjudicator is to be appointed by the Secretary of State.

### Deputy AdjudicatorU.K.

4U.K.The Secretary of State may appoint a Deputy Adjudicator.

5U.K.The Deputy Adjudicator may carry out any of the Adjudicator's functions.

### Term of office etcU.K.

6U.K.A person holds and vacates office as the Adjudicator or Deputy Adjudicator in accordance with the terms of his or her appointment,                        but—

(a)a person's initial term of office may not be more than four years;

(b)a person may be appointed for one or two further terms of office;

(c)a further term may not be more than three years;

(d)a person may resign by giving written notice to the Secretary of State; and

(e)the Secretary of State may dismiss the person if satisfied that the person is unable, unwilling or unfit to perform his or                        her functions.

7U.K.Service as the Adjudicator, or as the Deputy Adjudicator, is not service in the civil service of the state.

### RemunerationU.K.

8(1)The Adjudicator may pay to or in respect of the person holding office as the Adjudicator or the Deputy Adjudicator—U.K.

(a)remuneration;

(b)allowances;

(c)sums by way of or in respect of pensions.

(2)The Secretary of State must determine rates and eligibility criteria for the payments.

### StaffU.K.

9(1)The Adjudicator may make arrangements with the Secretary of State or any other public authority for staff to be seconded to                        the Adjudicator.U.K.

(2)The arrangements may include provision for payments by the Adjudicator.

### Conflicts of interestU.K.

10(1)The Adjudicator must make procedural arrangements for dealing with any conflict of interest affecting—U.K.

(a)the Adjudicator;

(b)the Deputy Adjudicator; or

(c)staff working for the Adjudicator.

(2)The Adjudicator must consult the Secretary of State before making or revising the arrangements.

(3)The Adjudicator must publish a summary of the arrangements.

11(1)This paragraph applies if both the Adjudicator and the Deputy Adjudicator are unable to act in relation to a matter because                        of conflicts of interest.U.K.

(2)The Secretary of State must appoint a person to act as a Deputy Adjudicator if asked to do so by the Adjudicator.

(3)An acting Deputy Adjudicator may carry out any of the Adjudicator's functions for the purpose of dealing with the matter in                        respect of which he or she is appointed.

(4)A person holds and vacates office as an acting Deputy Adjudicator in accordance with the terms of his or her appointment (subject                        to sub-paragraph (5)).

(5)Paragraphs 6(d) and (e) and 7 and 8 apply to an acting Deputy Adjudicator as they apply to the Deputy Adjudicator.

### Validity of actsU.K.

12U.K.A defect in appointment does not affect the validity of things done by—

(a)the Adjudicator;

(b)the Deputy Adjudicator; or

(c)an acting Deputy Adjudicator.

### Application of seal and proof of documentsU.K.

13U.K.The application of the Adjudicator's seal must be authenticated by the signature of—

(a)the Adjudicator; or

(b)some other person who has been authorised by the Adjudicator for that purpose (whether generally or specially).

14U.K.A document purporting to be duly executed under the seal—

(a)is to be received in evidence; and

(b)is to be treated as duly executed unless the contrary is shown.

### AccountsU.K.

15(1)The Adjudicator must keep proper accounts and proper records in relation to the accounts.U.K.

(2)For each financial year the Adjudicator must prepare a statement of accounts in respect of that financial year.

(3)The statement must be in whatever form the Secretary of State directs.

(4)The Adjudicator must send a copy of the statement, within a period specified by the Secretary of State, to—

(a)the Secretary of State; and

(b)the Comptroller and Auditor General.

(5)After the Adjudicator has sent a copy of a statement of accounts to the Comptroller and Auditor General, the Comptroller and                        Auditor General must—

(a)examine, certify and report on the statement; and

(b)send a copy of the certified statement and the report to the Secretary of State as soon as possible.

(6)The Secretary of State must lay before Parliament a copy of the certified statement and of the report.

### Incidental powersU.K.

16U.K.The Adjudicator may do anything that is calculated to facilitate the carrying out of the Adjudicator's functions or is conducive                        or incidental to the carrying out of those functions.

### Assistance from Office of Fair TradingU.K.

17U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

### Exemption from liability for damagesU.K.

18(1)The following are exempt from liability in damages for anything done or omitted in the exercise or purported exercise of their                        functions—U.K.

(a)the Adjudicator;

(b)the Deputy Adjudicator;

(c)acting Deputy Adjudicators;

(d)staff working for the Adjudicator.

(2)But sub-paragraph (1) does not apply—

(a)if the act or omission is shown to have been in bad faith; or

(b)so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful                        as a result of section 6(1) of the Human Rights Act 1998.

 Sections 4 and 7

## SCHEDULE 2U.K.Information powers

1(1)The Adjudicator may, for the purposes of an investigation, require a person—U.K.

(a)to provide documents in the person's possession or control;

(b)to provide other information in the person's possession or control.

(2)The Adjudicator may, for the purposes of monitoring whether a large retailer has followed a recommendation made under section                        7, require the retailer—

(a)to provide documents in the retailer's possession or control;

(b)to provide other information in the retailer's possession or control.

(3)A requirement imposed under this paragraph may include a requirement for information to be provided orally.

(4)A requirement is imposed by giving a written notice specifying—

(a)to whom the information is to be provided;

(b)where it is to be provided;

(c)when, or the time by which, it is to be provided;

(d)the form and manner in which it is to be provided.

(5)A notice must also explain the possible consequences of failing to comply.

(6)If a notice requires an individual to attend at a particular place the Adjudicator must offer to pay necessary travelling                        expenses.

(7)A person may not be required under this paragraph to do anything that the person could not be compelled to do in civil proceedings                        before—

(a)the High Court in England and Wales or Northern Ireland; or

(b)the Court of Session in Scotland.

2(1)It is an offence for a person intentionally to fail to comply with a requirement under this Schedule.U.K.

(2)It is a defence for a person charged with that offence to prove that there was a reasonable excuse for the person's failure.

3U.K.It is an offence for a person knowingly to provide false information in response to a requirement under this Schedule.

4U.K.A person guilty of an offence under this Schedule is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to a fine.