How to prepare for the summer “sales” (i.e. French soldes) ?

Linkea
Linkea
Avocats, Conseils en réseaux
14/05/2024

Under French law, the sales are defined as tending, through a reduction in price, to accelerate the clearance of goods in stock (article L.310-3 of the French Commercial Code).

Sales have a dual advantage: they enable professionals to sell-off their stock, and consumers to benefit from price reductions.

Regulations governing sales:

Regulations lay down the rules to be complied with by professionals during the sales period, and set the timetable. These rules apply to both physical stores and online sales sites.

Products on sale “must have been offered for sale and paid for by the retailer for at least thirty days prior to the start of the sale period” (article L.310-3 of the French Commercial Code).

Unlike promotional operations, during sales the professional may not restock.

Price reduction:

If products can be resold at a loss during the sales period, any announcement of a price reduction must indicate “the previous price charged by the professional before the application of the price reduction” in accordance with the provisions of article L.112-1 paragraph 1 of the French Consumer Code.

In addition, the reference price (the price charged before the sale period) must be indicated on the sale product. It “corresponds to the lowest price charged by the professional to all consumers over the last thirty days prior to the application of the price reduction” (article L.112-1-1 paragraph 2 of the French Consumer Code).

It is therefore necessary to indicate the last lowest price charged during the thirty days preceding the start of the sale period.

Paragraph 3 of article L.112-1-1 of the French Consumer Code provides for an exception in the case of “successive price reductions during a given period”, for which it is possible to take as the reference price “the price charged before the application of the first price reduction”.

Consequently, if the retailer grants several markdowns during the same sales period – corresponding to a single promotional operation – the “previous price” is that charged during the last 30 days prior to the start of the sales.

In the event of a DGCCRF inspection, retailers must keep proof of the reference price charged during the 30 days preceding the sale

Determining and differentiation products on sale:

Traders are under no obligation to offer sales.

The distinction between products sold with a reduction and the other shall be clear. In stores, this can be indicated by colored labels on products, or by a “new collection” label on new items. On the Internet, the distinction can be made by means of a specific tab devoted to products sold through a sale operation.

Guarantee, exchange and reimbursement of products on sale:

Sales have no impact on the legal warranties of conformity and hidden defects, which remain fully applicable to products sold on sale.

Furthermore, whether a product is on sale or not also has no impact on the right of withdrawal enjoyed by a consumer in the event of a distance purchase. This period remains 14 days from delivery of the product.

With regard to the conditions for exchanging or refunding products on sale through physical point of sale, the professional must indicate clearly the rule it wishes to apply in the shop and on the sales receipt.

The sales calendar:

Sales take place twice a year: winter sales and summer sales, during 4 weeks. Sale dates are set by decree.

The 2024 summer sales will take place from Wednesday June 26 at 8 a.m. to Tuesday July 23 for most French departements.

Outside the sales periods, retailers may run promotional operations with price reductions, but may not use the word “sale”, nor resell their products at a loss (unless under specific circumstances).

Linkea
Linkea
Avocats, Conseils en réseaux
14/05/2024
illu

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