The Groceries Code Adjudicator (GCA) could be scrapped as the government announces a third review into the regulator since it was established only eight years ago.
The consultation, launched earlier this week, could see the GCA's functions being merged into those of the Competition and Markets Authority (CMA).
The independent regulator ensures that retailers, in which 14 are currently signed up to the groceries code of practice, treat their direct suppliers - including farmers - lawfully and fairly.
First mooted in 2008, it took until 2013 for the GCA to be set-up, and was only given the power to issue fines following a cross-party campaign by MPs.
During its time, it has been involved in what is widely regarded as a landmark investigation which rooted-out unfair retailer practices.
The regulator also launches an annual survey for suppliers to raise any issues or concerns they are facing with the UK's largest supermarkets and retailers.
The most recent survey, the results of which were published last month, showed that inflation had weakened the supplier-retailer relationship.
But the government is now seeking views and evidence which will allow it to assess the performance of the GCA, the third such review in eight years.
Jane Hunt, MP and Minister for Small Business, Consumers & Labour Markets who has launched the consultation, said: "The government has not made any decisions about a possible transfer.
"But [it] would be particularly interested in whether there might be gains in efficiency and effectiveness in transferring the GCA functions to the CMA."
Gordon MP Richard Thomson has expressed concern at the announcement. “The big concern I have is the CMA may lose sight of complaints of suppliers being bullied by the big supermarkets when it has things like mergers and takeovers to scrutinise.
"The GCA’s single focus is the application of the Code and we need that to continue.”
The launch of the review comes as the government is looking for efficiencies, but Mr Thomson highlighted that the GCA was funded by a levy imposed on the major retailers, with a turnover of over £1 billion per year.
He added: "It’s therefore difficult not to conclude there must be some other reason for introducing this review now, the third for a body which is not yet a decade old."
The consultation closes at 11:45pm on 11 October 2022
