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18th January 2010
Supermarket watchdog to be implemented
A supermarket ombudsman will be created after the upcoming general election, it has been revealed.
Regardless of the party elected to power later this year, a supermarket ombudsman will be put in place to oversee the propriety of the relationship between the superstore sellers and their suppliers.
Despite calls from the competition commission last year that an ombudsman service should be set up, the current government has failed to act accordingly, with opposition parties accusing them of reacting weakly.
However, Kevin Brennan, the consumer minister, recently revealed that such a service would be created.
He said: "It's not a question of whether a body is needed but exactly how that body will operate."
Supermarkets, which would cover the cost of the service, have reacted angrily to the scheme's proposed implementation, insisting it could increase prices.
Such prices rises could be beneficial to the UK's smaller retailers, with competition potentially being restored.
Wholesalers and suppliers will certainly benefit, with the fairness of supermarket-related operations more heavily scrutinised.
© 2010
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