Government - owned Asda is to pay hundreds of thousands of pounds back to suppliers , after violating the grocery supply code of practice that governs fair dealing . UK food regulator , the Groceries Code Adjudicator , found Adsa charged disproportionate upfront fees , not necessarily those agreed in the contracts , and ousted some suppliers at short notice if they refused to oblige . Some of those who refused to make these payments, which were greater than those agreed in suppliers’ contracts, were given notice that they would be ousted within as little as four to eight weeks, according to the industry watchdog. It also made last - minute demands for cuts in cost prices on the basis of its contract renewal plan designed to cut costs , which it developed with consultancy firm Bain & Company . The grocer avoided both a fine and any formal investigation .
Government - owned Asda is to pay hundreds of thousands of pounds back to suppliers , after violating the grocery supply code of practice that governs fair dealing . UK food regulator , the Groceries Code Adjudicator , found Adsa charged disproportionate upfront fees , not necessarily those agreed in the 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 basis of its contract renewal plan designed to cut costs , which it developed with consultancy firm Bain & Company . The grocer avoided both a fine and any formal investigation .