French Commercial code
In forceI.-Any trader who resells or advertises the resale of a product in its unaltered state at a price lower than its actual purchase price is liable to a fine of €75,000. This fine may be increased to half the advertising costs if an advertisement, regardless of the medium, mentions a price lower than the actual purchase price. The cessation of the advertising may be ordered under the conditions set out in article L. 121-3 of the Consumer Code.
The effective purchase price is the net unit price shown on the purchase invoice, reduced by the amount of all other financial benefits granted by the seller expressed as a percentage of the net unit price of the product and increased by turnover tax, specific taxes relating to this resale and the price of transport.
The effective purchase price is multiplied by a coefficient of 0.9 for wholesalers who distribute products or services exclusively to professionals who are independent of the wholesaler and who act as retail resellers, processors or final service providers. Any business that is free to determine its commercial policy and has no capital link or affiliation with the wholesaler is considered independent.
II.-The provisions of I are not applicable:
1° To voluntary or forced sales motivated by the cessation or change of a commercial activity;
2° To products whose sale is of a marked seasonal nature, during the terminal period of the sales season and in the interval between two sales seasons;
3° To products which no longer meet general demand due to changes in fashion or the appearance of technical improvements;
4° To products, with identical characteristics, which have been restocked at a lower price, the actual purchase price then being replaced by the price resulting from the new purchase invoice ;
5° To food products marketed in a shop with a sales area of less than 300 square metres and to non-food products marketed in a shop with a sales area of less than 1,000 square metres, the resale price of which is aligned with the price legally charged for the same products by another trader in the same area of activity;
6° Provided that the offer of a reduced price is not the subject of any advertising or publicity outside the sales outlet, to perishable products from the moment they are threatened with rapid deterioration;
7° To the sale products mentioned in article L. 310-3.
These exceptions do not preclude the application of 2° of Article L. 653-5 and 1° of Article L. 654-2.
III.-Corporate entities found criminally liable for the offence provided for in I shall incur the penalty mentioned in 9° of Article 131-39 of the Criminal Code.
The cessation of advertising may be ordered under the conditions set out in article L. 121-3 of the Consumer Code.
