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Tesco forced to pay £1 million over GCA investigation

04 February 2016

The country’s supermarket ombudsman has ordered Tesco to pay £1 million to cover the cost of her investigation into the retailer. 

Christine Tacon, the Groceries Code Adjudicator, said the sum was not a punitive measure. Instead, it would cover the £1.2 million costs that were spent investigation Tesco over its relationship with suppliers. 

“I asked Tesco to contribute this money, which is a sizeable sum for any business,” she was quoted as saying by the Guardian. 

The GCA was not able to fine Tesco for breaches to the Groceries Code, as legislation which empowered the regulator to do so were introduced only after the investigation had begun. 

Details of the two year investigation, from 2013 to 2015, was released to the public last month. 

They suggested Tesco knowingly delayed payments to suppliers in order to boost reported margins. The delays lasted for months, sometimes years. 

One supplier had to wait for two years to be paid a multi-million pound sum. 

Tesco welcomed the report and said it had already introduced changes to how it behaves toward suppliers. 

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