Matalan is the latest firm to be criticised for putting the squeeze on smaller firms.
According to the Forum of Private Business (FPB), the chain is imposing a two per cent deduction on all payments to suppliers from September 1st.
The FPB states the company hopes the levy will help the firm to expand and also pass on the benefits of this growth to its smaller suppliers.
However, Phil Orford, chief executive of the FPB, disagrees.
"The fact that this latest charge is being justified to fund initiatives like marketing and international expansion adds insult to injury for many smaller firms, which are struggling to control essential costs as the economic downturn continues," he said.
Many small firms will also wonder why these activities cannot be funded through Matalan's profits, he added.
Such levies reflect a situation which is "endemic across a number of industry sectors", Mr Orford concluded.
Recently, the FPB urged the government to do more to help small firms win state contracts.
According to the body the process of tendering for such deals must be simplified.
