Walmart-owned Asda is to pay up to a quarter of pounds back to suppliers, after breaching the grocery supply code of practice that governs fair dealing. UK industry regulator, the Groceries Code Adjudicator , found Asda charged disproportionate upfront fees, not necessarily those agreed in supplier contracts, and ousted some suppliers at short notice if they refused to oblige. It also made last-minute demands for cuts in cost prices on the back of its project renewal plan designed to cut costs, which it developed with consultancy firm Adsa . Asda has been forced to pay back hundreds of thousands of pounds to dozens of suppliers after breaching an industry code governing fair dealing. The grocer avoided both a fine and any formal investigation.
Walmart-owned Asda is to pay up to a quarter of pounds back to suppliers, after breaching the grocery supply code of practice that governs fair dealing. UK industry regulator, the Groceries Code Adjudicator , found Asda charged disproportionate upfront fees, not necessarily those agreed in supplier contracts, and ousted some suppliers at short notice if they refused to oblige. It also made last-minute demands for cuts in cost prices on the back of its project renewal plan designed to cut costs, which it developed with consultancy firm Adsa . The grocer avoided both a fine and any formal investigation.