Ombudsman could lead to higher prices, warns Asda boss
Plans for an industry ombudsman to police supermarkets' relationships with their suppliers could cost the industry millions of pounds and lead to higher prices for consumers, Asda chief executive Andy Bond warned today.
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| Andy Bond |
In response to the Competition Commission's final report into the UK grocery market, released this morning, Bond said: "The CC's proposals on the new code and an ombudsman could cost the industry hundreds of millions, leading to higher prices for customers which will hit families hard at a time when they are already feeling the pinch.
"We strongly believe that the ombudsman should act as a mediator to resolve disputes rather than diving straight into binding arbitration, and should remain focused on the interests of the consumer.
"We look forward to discussing the precise remit with the CC so that we end up with an ombudsman who promotes effective competition, and doesn't dampen it."
On the commission's other findings, Bond said: "It's clear that supermarkets like Asda deliver a good deal for their customers, and after yet another exhaustive investigation the CC has again reached the same conclusion.
"While we welcome its proposals to improve local competition, and improve the relationship between retailers and suppliers, the bottom line is that any changes to how the market works must help us to lower prices and deliver an even better deal for customers.”
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