The Groceries Code Adjudicator Bill was given Royal Assent on Thursday 25 April, creating the UK's first independent adjudicator to oversee the relationship between large supermarkets and their direct suppliers.
Earlier this year, former Co-operative Farms head Christine Tacon was appointed to the Adjudicator role, enforcing the Grocery Supplier Code of Practice. She will outline how she intends to carry out the role shortly after Act comes into force in June.
Competition minister Jo Swinson said: "I am sure that the Adjudicator will make strides towards delivering fairer food supply chains and stronger growth in the industry."
She added that the Act "will give suppliers the stability to help them grow, innovate and compete in the market".
It gives the Adjudicator power to:
- arbitrate disputes between retailers and suppliers;
- investigate confidential complaints from direct and indirect suppliers, whether in the UK or overseas, and from third parties;
- hold to account retailers who break the rules by 'naming and shaming' or, if necessary, imposing a fine.