The GCA holds a reasonable suspicion that the Code has been breached by Tesco plc by some of its practices associated with the profit over-statement announced by the company in September 2014.
The investigation will focus on the conduct of Tesco plc in relation to the following provisions of the Code:
- Part 4 (paragraph 5) of the Code: No delay in Payments;
- Part 5 (paragraph 12) of the Code: No Payments for better positioning of goods unless in relation to Promotions.
The investigation will focus on Tesco plc only, at this stage, and will not extend to other designated retailers.
If during the course of the investigation evidence is presented to the GCA which indicates that the same practices have been carried out by other designated retailers, consideration will be given to extending the scope of the investigation to include them, in line with published GCA guidance including its prioritisation principles.