Draft 2 Act: Effects on distribution agreements and on restrictive practices: increased contractual flexibility but strengthened sanctions.
On November 8, 2016, Sapin 2 Act (name of French Minister of the Economy) was enacted.
Retail distribution agreements for maximum three years but yearly pricing negotiation:
The requirement of an annual distribution agreement would disappear with an opportunity to make distribution agreement with retailers up to three years. Practically, small suppliers’ and retailers’ professional organizations FEEF and FCD have anticipated this since September 2013 in an agreement (http. // www.feef.org/Engagements-et-r%C3%A9ussites/Accords-sign%C3%A9s-avec-la-FCD/Plate-forme-diff%C3%A9renci%C3%A9e-PME) and number of suppliers and distributors now plan to stick at contractual terms for a certain period over one year to avoid to reinitiating negotiations of these terms each year. Lire la suite