This Order makes provision for the method of determining the maximum financial penalty that the Groceries Code Adjudicator may impose on a large retailer under section 6 of the Groceries Code Adjudicator Act 2013 (“the Act”) for a breach of the Groceries Supply Code of Practice. That Code of Practice is set out in the Groceries (Supply Chain Practices) Market Investigation Order 2009 (“the 2009 Order”). The 2009 Order is one made by the Competition Commission under the Enterprise Act and can be found at www.gov.uk/gca. Section 9(1) of the Act provides that the amount of the penalty must not exceed the amount of the “permitted maximum”, and article 2 of this Order provides that the “permitted maximum” is 1% of the large retailer’s turnover, as calculated in accordance with articles 2 and 3. This is limited to turnover in the United Kingdom.

“Large retailer” is defined in section 22 of the Act. It means those retailers listed in Schedule 2 of the 2009 Order or one meeting the conditions set out at Article 4(1)(b) or 4(1)(c) of that Order, and includes a subsidiary of a designated retailer.

An impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.