The Federation says the review also fails to deliver any benefit to consumers.
The NFRN is calling for a new fully inclusive industry code of practice for both newspapers and magazines to be introduced. It also believes the code should be overseen by an industry-funded ombudsman.
National president Sam Whiteside said: "A consistent service can only be achieved through a comprehensive
code of practice that is legally underpinned and enforced with real teeth."
But the Association of News Retailing (ANR) believes the NFRN's suggestions are not enough for retailers and that the existing monopoly system must be broken up completely.
ANR managing director John Lennon told Convenience Store: "We think this needs to go much further. We certainly would not support any further form of industry regulation and there is no need for an ombudsman at all. We need greater competition in order to improve the service for retailers."