Thursday, November 10, 2016

Bercy continues to Carrefour for “unfair commercial practices” – The World

The ensign is accused by the ministry of economy of user practices “abusive” in the context of the annual negotiations with its suppliers.

World | • updated | By

The ministry of economy and finance has put pressure on the brands of the large food distribution then that opens the so-called period of ” trade negotiations “. Between October and February, large areas to discuss with their suppliers feed-in tariffs for the year, as provided for in the law on modernising the economy of 2008.

Wednesday, November 9, in the evening, the minister Michel Sapin, Christophe Sirugue, secretary of State in charge of industry, and Martine Pinville, secretary of State responsible for trade and consumer affairs, announced that they have assigned the Crossroads in front of the tribunal of commerce ” for unfair commercial practices, contrary to the provisions of the commercial code “.

The release of Bercy says :

” in particular, It is criticized Carrefour be required of its suppliers, without any consideration, a “discount distribution” of a material amount of, the payment of such discount being erected prior to the opening of trade negotiations-annual. the These practices, which are contrary to the law, are likely to destabilize the economic balance of the sector, weaken the industrial enterprises and agricultural producers, with possible consequences on the job or, ultimately, the diversity of the offer. “

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discussion more tense by the day

This procedure is a result of the survey conducted by the Directorate-general for competition, consumption and repression of fraud (DGCCRF) at the previous period of trade negotiations. The administration was then controlled 88 institutions during this period of time, or 70 % more than in 2015, and searched the Carrefour group on 9 February.

According to evidence gathered at the time from several manufacturers, Carrefour had asked its suppliers to share with him the cost of logistics for the development of its convenience stores, more expensive to deliver to a very large surface area.

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The sign ” has calculated the revenue it makes with each industrial in its convenience stores and asked them to pay logistics costs, conditioning the opening of negotiations for trade agreement “, explained a professional in The World, at the end of February. The amount claimed by Carrefour with its suppliers would have been between 4 % and 6 % of this turnover.

With the price war and the reconciliations of the brands to create large power plants to purchase commons, the discussions turn more and more to the strength : requests of price reduction to the provider with threats of exit rays, the products of the brand as long as it has not accepted the conditions, staged dramatised racking off, placardage hangers products dereferenced in the box of the negotiations. And this year, they will all the more that the retailers are not satisfied with their sales in an economic context that is complicated by the weather, the attacks, the events and, overall, a change in consumer behaviour.

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Increase in the maximum fines

Between the length of the proceedings and various appeals, no penalty has actually been applied

With the adoption of the act Macron, 2015 the government hoped to have discouraged the distributors to continue their practices, the maximum fines being increased from € 2 million to 5 % of the turnover. But it has not been. To the extent that, until now, between the length of the proceedings and various appeals, no penalty has actually been applied.

In 2015, following negotiations very tense, Intermarché and System U had been assigned in justice by Bercy for abusive practices. The cases are still under investigation. System U has recently filed an appeal in cassation in order to attempt to cancel another decision pronounced in 2006 and confirmed on June 29 by the court of appeal of Paris, which ordered the ensign to repay almost € 77 million on four suppliers (Nestlé, Danone, Yoplait and Lavazza).

for Crossroads, the court of appeal has confirmed that in 2015 the adjudication of a matter dating back to 2008 in which the sign was to repay in sixteen of its suppliers for a total of 16.1 million euros (2 million euros of fine to the key). Here, too, the appeal is in progress.

Finally, the fine of 61 million euros imposed on Leclerc in July, 2015, to have seen under the stress of patronage dividends with respect to its suppliers which has not been paid, the brand has also appealed in cassation.

” to this day, the ministers are also parties in a forty contentious cases before the court, and recall that these are likely to give rise to heavy sentences (fines and civil restitution of amounts improperly charged) “, has warned the ministry of the economy, adding that the controls of the DGCCRF ” should continue intensively this year.”

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