MPs agreed in principle to the Groceries Code Adjudicator Bill on 19 November 2012, which would create an adjudicator to oversee the relationship between large supermarket chains and their suppliers.
The Competition Commission has expressed concerns that many retailers may have been in breach of the groceries code, which was introduced in 2010 in an attempt to protect groceries suppliers from the transferral of excessive risk and unexpected costs from large retailers.
The adjudicator will be expected to investigate allegations that retailers have violated the code and attempt to resolve differences between retailers and suppliers.
It would be able to name and shame supermarkets that fail to adhere to the code.
The legislation will also give the government the power to introduce financial penalties to the regulatory regime if this were deemed necessary in the future.
The bill was approved at second reading without a vote.