In the insurance sector, this is seen in suppliers enduring lengthy durations before they are paid or having their contracts terminated without notice. Read MoreThe authority, in its annual report for the period to June 2020, said it investigated 32 cases of buyer power abuse, of which 12 were small businesses having made complaints about the insurance industry. “In terms of abuse of buyer power conducts investigated, delayed payments was the most prevalent at 66 per cent, followed by unilateral termination without notice or on short notice at 15 per cent,” said CAK. The authority said many of the suppliers affected when large companies abuse buyer power are small and medium enterprises, some which have had to shut down after failing to sustain operations owing to cash flow problems. They are the biggest casualties of abuse of buyer power.”

Source: Standard Digital February 23, 2021 07:07 UTC