Investigation Will Cost Tesco Over $1 Million

Sponsored Message
MangoesLearn More

Mon. February 8th, 2016
- by Melissa De Leon Chavez     

UNITED KINGDOM - Tesco has been sent the bill for the costs of the Grocery Code Adjudicator (GCA) investigation into the company’s business practices.

GCA’s Christine Tacon has instructed the retail giant to pay the watchdog organization £1.2 million ($1,730,286) for the year-long investigation, according to The Guardian.

Photo Source: Forbes

As we previously reported, the GCA looked deeply into Tesco’s practices after questions were raised about it and other major retailers acting unfairly within the supply chain, finding that the chain would delay or not pay suppliers in instances where disagreements occurred. Many of those that were denied or delayed payments for months or year were farmers and ranchers.

After the findings were announced, Tesco’s CEO Dave Lewis accepted the allegations publicly, releasing a company statement detailing implemented fourteen new initiatives the company has implemented to improve the way it works with suppliers.

A clip of that statement can be found below.


While the GCA would normally have the power to levy fines up to 1% of turnover in value, this was not granted to them until after the infractions it found in Tesco’s practice took place. Therefore, while its findings were made publically known, the GCA was unable to bring any monetary penalties to the retailer.

Christine Tacon, Groceries Code Adjudicator, United Kingdom“I asked Tesco to contribute this money, which is a sizeable sum for any business,” Tacon said, according to The Guardian, in regards to the $1.7 million charge.

The investigation was launched in February of last year, with the findings having been released last month on Jan. 26th. To view the full findings, click here.

AndNowUKnow will continue to follow any influential moves by Tesco and other retailers that could affect the produce industry.