The Groceries Code Adjudicator (GCA) will be allowed to intervene in a High Court case between Aldi and two of its former sprout and brassica suppliers, marking one of the few times the Groceries Supply Code of Practice (GSCOP) has been directly applied in a UK courtroom.
A ruling by Deputy Master Bowles has confirmed that the GCA, Mark White, can present evidence in the US$4.7 million lawsuit brought by suppliers John Clappison and Matthew Rawson. Clappison alleges that Aldi breached the GSCOP by delisting his company, W Clappison Ltd (WCL), without providing adequate notice.
This is only the second case in which GSCOP has featured in court proceedings and the first where the regulator has been permitted to take an active role. Aldi's legal representatives had opposed the GCA's involvement, arguing it would add "unnecessary complexity and costs" to the case, but the judge ruled in favour of allowing the intervention.
The dispute centres on claims that Aldi gave assurances of continued business before removing WCL from its supplier network with little warning. The plaintiffs, who supplied Aldi with sprouts and brassicas for several years, argue that the delisting led to their company's closure and heavy financial losses. Under GSCOP, retailers are required to give suppliers "reasonable notice" before ending a relationship, considering factors such as contract value, duration of partnership, and product type. The GCA's legal team maintains that these factors should be "front and centre" of the case.
The ruling comes ahead of the GCA's 2025 annual survey, expected to include findings on short-notice delistings and pressure on suppliers. The High Court trial is scheduled for April 2026 and could influence how GSCOP is interpreted and enforced in future disputes.
While GSCOP has legal standing, there is little case law to guide its application in court. The GCA's participation is expected to test how compliance with the Code is evaluated judicially. If the court upholds the suppliers' claims, the decision could encourage more producers to pursue legal action when alleging breaches by retailers.
Aldi has faced other legal challenges in recent months. In June 2025, the UK Supreme Court dismissed Aldi's appeal in a trademark dispute with Thatchers over its Cloudy Lemon Cider, forcing the retailer to review aspects of its private-label strategy.
The upcoming trial is expected to draw attention across the UK grocery sector, particularly from suppliers seeking greater clarity on their rights under GSCOP.
Source: MichelMores
