EGALIM Act now voted : the word « gratuit » (« for free ») prohibited for food promotional operations. Two ordinances up to come regarding Minimum Resale Price and legally capped promotions over food and petfood, but also new rules applicable to relations between suppliers and retailers …

EGALIM Act now voted : the word « gratuit » (« for free ») prohibited for food promotional operations. Two ordinances up to come regarding Minimum Resale Price and legally capped promotions over food and petfood, but also new rules applicable to relations between suppliers and retailers …

The food product seller can no longer use the word « gratuit »  (to be inserted in Article L441-2 of Commercial Code). « Offered » or « X products for the price of Y » remain possible.

An ordinance related to the increase of the minimum resale price for food and petfood will be shortly published:

a- minimum resale price for food and petfood will be the ordinary minimum resale price x 1.10 time.

b- discount, rebates, remunerations, whether immediate or deffered, over a food or petfood product, negotiated for the sale to consumers, shall be capped to 34% of the sale price of the product.

c- such promotional advantage granted by either suppliers or distributor shall not affect products which represent more than 25% (before such deductions):

  1. turnover forecasts ;
  2. volume forecasts ;
  3. minimum volume commitments.

Another ordinance should be shortly published with modifications of invoicing rules, T&Cs, distribution agreements and significant imbalance between professionals…

 

Frédéric Fournier
Partner