Tesco Knowingly Delayed Payments To Suppliers

mikey4444 | 17:07 Tue 26th Jan 2016 | News

19 Answers

http://www.bbc.co.uk/news/business-35408064

Tesco is banged to rights here, and not a day too soon.

'plane Stupid' Protesters Could Face Jail Sentences.

Htf Can You Have A Vegan Butcher?

Answers

1 to 19 of 19

Best Answer

No best answer has yet been selected by mikey4444. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.

wolf63

Is this not 'old news'? I am sure that we read about it last year or the year before.

1581960

We all have the ability to judge Tesco if we want, we either shop there or elsewhere.

mikey4444

Question Author

1581960...Yes I agree but if shoppers didn't know that Tesco acts in this way, they can't really exercise any choice.

Read the link...the evidence is pretty damning.

ToraToraTora

standard practice among virtually all firms mikey.

bazwillrun

it is wolf but mikey for some reason thinks hes an alternative news service and loves to regurgitate old stories and especially ones where he thinks you should have the same views as him...

I use Tescos regularly and have no intention of not using them.. most businesses will pay suppliers as late as possible, hardly a new thing, the fact that it was a policy is neither here nor there, the majority of companies always pay late to further their own position ...

Islay

Yes I am aware of this - will it stop me shopping there? Probably not!

Baldric

This from FEB 2015

http://metro.co.uk/2015/02/05/tesco-probed-over-late-payments-to-suppliers-5050089/

Orderlimit

Yes, very common, probably why Experian acquired 'Riskdisk' in 2011

'It allows you to determine the credit worthiness of your customers and prospects in an instant using our unique Experian Commercial Delphi scorecard and many other publicly & privately available data sources.'

http://www.experian.co.uk/business-express/about-business-express.html

mikey4444

Question Author

Wolfie....no, not old news but fresh today. That fact that TESCO was being investigated has been around for a while, but the verdict of The Grocery Code Adjudicator, Christine Tacon, was released today. She was interviewed on the World at One this lunchtime. Read the link !

Do try to keep up ( ! )

jno

people seem unable to follow the distinction between an allegation and a ruling. No doubt that's why they're so quick to judgment when people are first charged.

ichkeria

It is a current news item. Reported because of the findings of the Grocery Code Adjudicator (no I didn't either :-) )

"Accounting irregularities still outstanding" I see

There was no suggestion of people boycotting Tesco because of that, was there?
Are Tesco really just doing what everyone does, or is it worse in their case?
I don't know, but it would be a more worthwhile discussion than the unnecessary personal attacks.

mikey4444

Question Author

jno...most of the allegations have been proven, as shown in Ms Tacon's report::::

Ms Tacon cannot fine Tesco as she only acquired this power after the investigation began.

The adjudicator examined three key areas: the length of time taken to pay money due to suppliers, unilateral deductions from suppliers and an intentional delay in paying suppliers in some cases.

On the issue of payment for better shelf positions or space for products, Ms Tacon found no evidence that Tesco breached this part of the grocery code.

However, she found evidence of a range of practices that she would like examined.

Her five recommendations include stopping Tesco from making unilateral deductions from money owed for goods supplied. Suppliers will be given 30 days to challenge any proposed deduction and if challenged Tesco will not be permitted to make the deduction.

Ms Tacon has set a four-week deadline for Tesco to say how it plans to implement her recommendations. She will then require regular reports from the company on its progress.

mikey4444

Question Author

ichkeria...thanks at 17:40 !

If people took the trouble to read the BBC link, it would have been obvious that this was "new" news today.

Bazile

The fact that most companies do it , doesn't make it right .

I suspect that to a lot of smaller companies , it's serious enough as to threaten their continual trading

//Tesco apologised for the practices, saying they had harmed its suppliers.//

Orderlimit

No it doesn't make it right and hopefully this case will bring about change

mikey4444

Question Author

Well said Bazile and OL !

!The investigation by the SFO is still ongoing but to quote the BBC link ::

The SFO investigation began in October 2014.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said stockbrokers believed Tesco would be hit with a substantial fine from the SFO.

"Cantor Fitzgerald are suggesting Tesco could face financial penalties in excess of £500m for its accounting misdemeanours, pending the publication of the forthcoming Serious Fraud Office investigation," he said"

jno

mikey, yes, I know. That was the point I was making: just because a thread ran when the allegations were first made, it doesn't mean it can no longer be mentioned when judgment is reached.

Svejk

Svejk

^There's plenty more where they came from. One can only wonder what poor old Tescos have done to mikey.
(how about it, mikey? get it off your chest. You'll feel much better.)

1 to 19 of 19

Do you know the answer?