Milk price fixing scandal puts pressure on Competition Commission, says FSB.

The Federation of Small Businesses (FSB) called on the Competition Commission to make sure that its current inquiry into the grocery sector finally delivers a fair market for all retailers and suppliers. This comes after the Office of Fair Trading (OFT) provisional decision that the large supermarkets and dairy producers have been fixing milk prices, costing consumers around £270 million whilst small dairy farmers see no benefit.

The FSB has heard from many of its members that the supermarkets pay their invoices late and that they pressure suppliers with unfair demands to enable them to undercut their rivals.

The current Competition Commission inquiry into the supermarkets is the third in seven years and the FSB believes that this alone demonstrates that there is a case for them to answer. The FSB is reminding the Competition Commission that it is their job to ensure fair competition across the board, not jut between the big four supermarkets, and that another failure to act is unacceptable.

John Wright, FSB National Chairman, said:

“Following on from the Competition Commission’s demands that some of the supermarkets hand over e-mails sent to suppliers to check for bullying, this scandal over milk price-fixing further raises the scrutiny on Asda, Tesco, Sainsbury’s and Morrisons.

“The current inquiry into the supermarkets by the Competition Commission is the third in seven years. Small retailers, who lose out due to unfair competition, and suppliers, who are bullied and paid late, will all hope that it is third time lucky.

“We are not asking for special treatment for small businesses, we are just asking for fair treatment. It is now incumbent on the Competition Commission to make that happen.”

ENDS

Notes to Editors:

1. Details of the OFT decision can be found at https://www.gnn.gov.uk/Content/Detail.asp?ReleaseID=315929&NewsAreaID=2

2. Small businesses employ 58 per cent of the private sector workforce, contribute over 50 per cent of UK GDP and make up more than 99 per cent of all UK businesses.

3. The FSB is Britain’s biggest business organisation with over 210,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.