Amazon under investigation over late payments to food suppliers
Amazon is being investigated by the Groceries Code Adjudicator (GCA) following concerns the ecommerce giant may have been delaying payments to food suppliers.
Amazon is being investigated by the Groceries Code Adjudicator (GCA) following concerns the ecommerce giant may have been delaying payments to food suppliers.
The investigation will look into whether Amazon failed to meet its obligations under paragraph 5 of the Groceries Supply Code of Practice (GSCOP), which requires designated retailers to ensure there is “no delay in payments” to suppliers.
The GCA said it had “reasonable grounds” to believe the retail giant may have breached the Code between March 2022, when it was formally designated under GSCOP, and 20 June 2025. The probe will place particular focus on the period since January 2024 to assess Amazon’s most recent practices.
The regulator said it had received “a range of evidence from multiple sources” and will now look at how Amazon’s practices around receiving goods, processing payments, and handling deductions may have impacted suppliers.
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“Delays in payment can significantly harm suppliers. The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,” said adjudicator Mark White.
White is urging direct suppliers and other stakeholders to contribute to the investigation through a call for evidence, which will remain open until 8 August. Submissions will remain entirely confidential.
The GCA said it had previously raised concerns with Amazon in 2024 and instructed the retailer to take swift action to improve Code compliance. However, further reports from suppliers prompted today’s formal investigation.
While the current focus is on delayed payments, the GCA also acknowledged it had received “information about other issues” relating to Amazon’s conduct and said it would continue engaging with the retailer. If necessary, additional investigations could follow.
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