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Business practices
Trade negotiations for consumer products advanced to January 2024
Publié le 23 novembre 2023 - Legal and Administrative Information Directorate (Prime Minister)
In order to rapidly reduce the price of consumer products, the deadline for commercial negotiations between distributors, such as supermarkets, and suppliers is moved from 1 to January 2024er March 2024.
In a context of high inflation, the annual round of trade negotiations between suppliers and distributors has just been advanced by a law of 17 November 2023. The aim is to speed up the process of lowering prices for consumers.
Which agreements are involved?
These new provisions apply to conventions on consumer goods marketed in France concluded before 1er september 2023 between any distributor engaged in a retail trade food predominance and everything consumer goods supplier.
Please note
They do not apply to distributors located overseas.
New dates in the trade round
The dates set for negotiating new sales prices vary according to the supplier's turnover excluding tax (CAHT).
Deadline for supplier with turnover less than EUR 350 million
Suppliers with a CAHT of less than EUR 350 million have until 15 january 2024 inclusive to conclude the agreement with the distributor. This will apply from 16 january 2024 at the latest.
Agreements between traders signed before 1er september 2023 automatically end on January 15, 2024.
Deadline for the supplier with a turnover of EUR 350 million or more
Suppliers with a CAHT of EUR 350 million or more have up to and including 31 january 2024 to conclude the agreement with the distributor. This will apply from 1er february 2024 at the latest.
Agreements between traders signed before 1er september 2023 automatically end on January 31, 2024.
What is the penalty for non-compliance with these dates?
Suppliers who fail to comply with these deadlines may be fined, by infringement, €200,000 maximum for a natural person and €5 000 000 maximum for a business.
Please note
These dates shall also apply to the possibility of interrupting deliveries or applying an advance notice of termination in the event of failure of the annual negotiation. Thus:
- for suppliers with a CAHT of less than EUR 350 million, this possibility shall be open if no agreement is concluded by 15 January 2024. In the event of a dispute over the terms of the notice, the parties may refer the matter to the Ombudsman for Agricultural Commercial Relations or the Ombudsman for companies in order to conclude, before the 15th February 2024, an agreement setting out the conditions of notice;
- for suppliers with a CAHT of EUR 350 million or more, this possibility shall be open if no agreement is concluded by 31 January 2024. In the event of a dispute over the terms of the notice, the parties may refer the matter to the Ombudsman for Agricultural Commercial Relations or the Ombudsman for companies in order to conclude, before the 29th February 2024, an agreement setting out the conditions of notice.
Deadlines for communicating the general terms and conditions of sale to the distributor
Concerning the general terms and conditions of sale (GTC)However, the cut-off dates also change according to the CAHT of the supplier:
- if its CAHT is less than EUR 350 million, the supplier has until 21 november 2023 inclusive to communicate its GTC to the distributor
- if its CAHT is greater than or equal to EUR 350 million, the supplier has until 5 December 2023 inclusive to communicate its GTC to the distributor.
FYI
The distributor has a period of 1 month from receipt of the GTC to accept, reject or indicate the conditions he wishes to negotiate.
Summary table
Deadline for concluding the agreement between traders | Deadline to communicate the GTC to the distributor | |
The supplier's CAHT is less than EUR 350 million | January 15, 2024 | November 21, 2023 |
The supplier's CAHT is EUR 350 million or more | January 31, 2024 | December 5, 2023 |