UK newsagents threatened by new supply agreement

Posted by Emily Dilling on April 28, 2009 at 5:03 AM

In the United Kingdom, Lord Mandelson's modification of the 1994 Newspaper Code of Practice risks leaving newsagents without a product to sell, The Grocer reported today.

The Grocer's David Visick writes that publishers are "no longer forced to supply newsagents who order their titles," leading to a certain fear among vendors whose retail locations are off the beaten path. Last week, the rule was deemed out-of-date by the Office of Fair Trading.

This fear was addressed by John Lennon of the Association of News Retailers who stated, "Without a statuary obligation to supply, wholesalers may be tempted to price 'hard to serve' retailers out of the market by increasing their carriage charges to unacceptable levels," the Grocer reported.

The Association of News Retailers and the National Federation of Retail Newsagents have appealed to the Office of Fair Trading (OFT), requesting an investigation into the affair.

The OFT said it will take into account "representations regarding recent market developments" before a final decision to refer the case to the Competition Commission is made, according to the Grocer.