The creation of a retail ombudsman could lead to strained relationships between supermarkets and suppliers, pushing up food prices, Asda has claimed.
According to Asda, if such a regulatory body was created, then the relationship between supermarkets and suppliers would become strained by red tape.
Documents sent by the retailer to the Competition Commisison said that the ombudsman would be favourable towards suppliers, something chief executive at Andy Bond said is “one-way traffic”, reports the Daily Mail.
He commented: “We’ve become increasingly concerned that the ombudsman will not be sufficiently qualified to understand the way the market works.”
A spokeswoman at the supermarket added that relations with suppliers ought to be “fast-moving”, something that could be hindered with the creation of the complaints official.
Last month, Association of Convenience Stores chief executive James Lowman said that the government’s ombudsman suggestions should be given the go-ahead.
Retailers polled by IGD last week said that the relationship between suppliers and supermarkets is becoming difficult as the credit crunch hits and retailers try to reduce costs.
A draft proposal is to be published by the end of November.
