TITLE II: Anti-competitive practices.

Articles in this section · 10

Article L420-5

French Commercial codeIn force

Updated 7 Nov 2023

A price offer or practice of selling prices to consumers that are unreasonably low in relation to production, processing and marketing costs is prohibited where the purpose of such an offer or practice is, or may be, to eliminate an undertaking or one of its products from a market or prevent access to a market.

In Guadeloupe, French Guiana, Martinique, Réunion and the Department of Mayotte, when foodstuffs identical or similar to those produced and marketed locally are offered to consumers at prices that are clearly lower than those charged in mainland France, the conclusion of an agreement between those involved in import and distribution, on the one hand, and those involved in local production and processing, on the other, may be made compulsory by the State representative in the territory. This takes into account the volumes of products concerned, the economic situation of local producers and the interests of consumers on very low incomes. This agreement, which is negotiated under the aegis of the State and the local authorities responsible for economic development, must mention the ongoing operations carried out by retailers to offer consumers locally produced foodstuffs, as well as the policy carried out by local producers to best meet consumer needs. The agreement is made public by order of the prefect. In the absence of an agreement within ten working days of the start of negotiations, the State representative in the territory shall take any measures falling within his or her remit to meet the aforementioned objectives by order.

Marketing costs shall also imperatively include all costs resulting from legal and regulatory obligations relating to product safety.

The first and third paragraphs of this article shall not apply in the event of resale as is, with the exception of sound recordings reproduced on physical carriers and videograms intended for the private use of the public.

Mariela Petrova

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Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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