The Groceries Code Adjudicator has today published her report, identifying that Tesco did breach the GSCOP (Groceries Supply Code of Practice) code - especially in regard to late payment.

She has made certain recommendations that Tesco must implement and report on. This includes a requirement that Tesco ceases making unilateral deductions - Tesco must first give suppliers 30 day's notice of a deduction and provide an explanation.

The report throws up no surprises - anyone familiar with grocery supply chain practices will recognise the activities which the report sets out. However, it does at least in an authoritative way demonstrate these practices have been happening. It might result in a shift in payment practices by supermarkets, and even a small shift will be good for suppliers.

The adjudicator was not permitted at law to fine Tesco. However going forward she does have the power to fine. Therefore all supermarkets will be considering the report to see if they need change practices and avoid an investigation, the risk of an adjudicator compelling changes in business practices and the risk of fine.

We will be reviewing the Tesco report in more detail and publish our analysis. The report has been published on the GCA website.