Quote:
Originally Posted by OldWelshGuy
tescos have been accused of using unethical tactics on their suppliers, as in forcing them to supply goods at a price that actually costs the suppliers money to supply. They make demand for offers (reduced prices) that the supplier has two options
1. agree and supply at a loss
2. refuse, and be removed from the suppliers list.
In effect tesco blackmail and bully suppliers, including local farmers etc. I would like to see the OFT getting involved rather than boycotting.
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Some may call it unethical, but why would any business pay more for goods than it had to? For this situation to occur, there are obviously too many players amongst the suppliers.
I tend to go with the belief that, left alone, these things will eventually sort themselves out. After all, Tesco's tactics can't last forever.
However, in this case we risk losing a valuable industry, so I agree - The OFT should deal with it (where British suppliers are involved).