European retail and wholesale organisation EuroCommerce has filed a formal complaint against the new pricing law adopted by the French government earlier in 2023.
The complaint against the legislation, Loi Descrozaille, was lodged with the European Commission (EC).
The new law is the third in a series of laws on commercial relations between suppliers and buyers. It was passed in March 2023 and is due to take effect in March 2024.
The law places a 34% cap on promotions a retailer can offer on beauty, hygiene and personal care products.
According to EuroCommerce, the new law provides French courts with exclusive jurisdiction for all commercial negotiations on products intended for the French market.
This affects the European Union’s (EU) regulations on free movement of goods, services and establishment within its single market.
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The law also strengthens the power of global manufacturers, who take full advantage of the single market by producing centrally.
EuroCommerce director general Christel Delberghe said that the new law’s implementation prevents retailers and wholesalers from buying products at a pan-European level, thereby impacting their ability to offer lower prices to shoppers.
Delberghe stated: “The Loi Descrozaille prevents retailers and wholesalers from seeking better sourcing conditions in the European single market.
“This in turn prevents retailers and wholesalers from providing greater choice and more affordable prices to consumers across Europe. We ask the European Commission to urgently address this violation of EU rules on choice of law and free movement with the French authorities.”