Sunday, February 17, 2008

Offshop to police big stores

BRITAIN’S supermarkets are to have a watchdog to keep them in check, it was confirmed last night.

An ombudsman – nicknamed Offshop – will get the power to hand out fines if supermarkets use their size to force down prices paid to suppliers.

The Competition Commission recommended a tougher code of practice.

It said local authorities should have greater powers when making planning decisions involving new, large grocery stores.

But it said councils should only block developments if one supermarket is too powerful in the area.

Asda welcomed the findings, while Tesco dismissed the watchdog as “unnecessary red tape”.

The Association of Convenience Stores, which represents 33,000 local shops, said the Commission did not “go far enough”.

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