Trade talks: Two European buying centers targeted by “prior penalties” – 02/21/2024 at 10:15 pm

Two European mass distribution buying centers that did not respect French law are being targeted by “pre-fines” amounting to “tens of millions of euros”, which they have two months to contest, Wednesday’s Economy Minister Bruno Le Maire made the announcement.

Distributors have in recent years set up purchasing and service centers in Europe to negotiate with their largest industrial suppliers, often multinationals. Some are accused of not respecting French law.

“European buying centers must respect national laws,” Bruno Le Maire said on Wednesday during a press conference hosted by Prime Minister Gabriel Etal. However, “the two power plants did not comply with the provisions of the law” and on February 19 a “prior fine” was issued “for an amount equal to ten million euros”.

The two centers have two months to put forward their conflicting arguments, at the end of which the sanctions will be “final”.

In addition, Bruno Le Maire announced that 1,000 establishments had checked the French origin of products sold and that 372 were non-compliant, “not respecting the Origin France label” or “fraudulent on this merchandise”.

In a message to AFP on Wednesday evening, the Origin France Guarantee Association clarified that “the Minister’s comments do not target products that benefit from the Origin France Guarantee certificate but agricultural products, especially fruits and vegetables, which show the + marking Origin France +” inadequate.

In a tweet on Wednesday evening, Bruno Le Maire indicated that the controls were carried out “on the French origin of the products”, without mentioning the “Origin France Guarantee” label.

The first reports should be issued “in the coming days”, he said.

“Not respecting” the rules regarding the display of French origin is considered “a deceptive commercial practice punishable by a criminal sanction” of up to 10% of turnover, the minister recalled in the morning.

He clarified that 150 agents of Fraud Repression (DGCCRF), Bercy’s division, were mobilized to control major manufacturers and supermarkets.

To date, 1,400 inspections had been carried out on the 200 largest manufacturers and 5 main distributors, Bruno Le Maire indicated, citing “150 cases of non-compliance, particularly for delays in signing contracts”. Prior restrictions have been notified.

“We are happy that it is going on,” commented Arnaud Rousseau, head of the agricultural union, on France 5. But “we will not give up, we will come and demand accountability for these restrictions,” he stressed.