Tesco Plc received a rap on the knuckles from the U.K. grocery regulator, which said Britain’s largest supermarket chain prioritized its own finances over treating suppliers fairly in breach of an industry code.
Tesco delayed significant payments on a widespread basis and made unilateral deductions to the money it owed for goods already received, the Groceries Code Adjudicator said in a report Tuesday. The retailer apologized, saying that it accepts the rebuke and will work to rebuild trust with manufacturers.
The findings conclude an 11-month investigation prompted by Tesco’s admission that it overstated profit by 326 million pounds ($465 million.) The GCA investigated whether Tesco’s delaying of payments to suppliers violated industry rules and if the retailer demanded suppliers pay to receive preferential product placement in stores.
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