Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
The Groceries Code Adjudicator (the GCA) has concluded her first ever formal investigation, finding that Tesco seriously breached the Groceries Supply Code of Practice by failing to pay suppliers within a reasonable time. The report on her investigation has been published this week.
Helen Hart, solicitor in the Lexis®PSL Commercial team, provides a useful overview of the investigation below:
What was the background to the investigation?
On 22 September 2014, Tesco released the following trading update statement confirming that it had:
identified an over-statement of its expected profit for the half-year, principally due to the accelerated recognition of commercial income and delayed accrual of costs...the Board believes that the guidance issued on 29 August 2014 for the Group profits for the six months to 23 August 2014 was overstated by an estimated £250m.
As a result, the GCA launched an investigation in early 2015 into some of the practices associated with the profit over-statement.
After considering information submitted, the GCA held a reasonable suspicion that Tesco had breached the Groceries Supply Code of Practice regarding delayed payments and requests for payments for better positioning of goods. The investigation covered the period from 25 June 2013 to 5 February 2015.
What has the GCA found?
The GCA issued her report on 26 January 2016, finding that Tesco had seriously breached the Code.
She considered Tesco’s breaches of the Code to be serious due to the varying and widespread nature of the delays in payment. During the investigation she found that the retailer had acted unreasonably when delaying payments to suppliers, often for lengthy periods of time. She also found delay in payments arising from data input errors, duplicate invoicing, deductions to maintain Tesco margin an
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234