2023-02-07 23:00:00
Taking up the so-called “Consumer Products” bill on commercial relations, the Senate’s Economic Affairs Committee has significantly modified the text to rebalance the balance of power between suppliers and distributors, while preserving contractual freedom and to try to reduce inflation on food products.
It drew the conclusions from the failure of the experiment to raise the threshold for resale at a loss on food products by 10% (“SRP+ 10”), which resulted in a blank check to large retailers, without any improvement in the situation of farmers. Due to inflation which reached 14% over one year for food products, it suspended until 1is January 2025 this mechanism which represents, each year, approximately €600 million taken from the consumer’s pocket without having “dribbled” onto the farmers.
Noting that the regulation of promotions on food products had led to a significant increase in promotions on drugstore-perfumery-hygiene (DPH) products, greatly threatening employment and investment in our territory, it extended this protection to all consumer products. This measure would have a minimal inflationary effect, well below the purchasing power gains represented by the suspension of the SRP+ 10.
Faced with the legal vagueness caused by the absence of an agreement on the 1is march between supplier and distributor, the commission has clarified the situation by providing that the price applicable during the notice of termination must now take into account the economic situation of the market (inflation, average increases accepted by competitors, etc.) and cover, at at the very least, the evolution of the price of agricultural raw materials. This last device makes it possible both to avoid the risk of supply disruption feared by distributors, the constraint that would represent the fact of delivering “at a loss” and the risk of sudden delisting feared by SMEs.
For Anne‑Catherine Loisier, rapporteur of the text: “The commission has found a satisfactory balance here, which specifies the rules of the game without intervening directly in the negotiations. Everyone will benefit from it, since the fears and tensions stem precisely from the lack of clarity of the law. In addition, the suspension of the SRP+ 10 will make it possible to restore purchasing power to the French without relaunching a price war detrimental to farmers, since the Egalim 2 law has intervened in the meantime to protect agricultural materials in the negotiations “.
For Sophie Primas, president of the commission: “Parliament does not intervene on these subjects for pleasure; it does so above all because of the unique level of tension and distrust that reigns between industrial players and large retailers, of which we have had several examples recently. , it is up to the legislator to correct the situation when an adopted measure has side effects: this is what we are doing by regulating promotions on non-food products. Without this, and given the number of these products manufactured in France, we would run a significant risk in terms of employment, investment and innovation in these sectors”.
Senate Communication Department – Philippe Péjo
Telephone: +33 1 42 34 35 98 – [email protected]
1681994367
#Law #relations #suppliers #distributors #Senate #rebalances #balance #power
