Commercial negotiation between Suppliers and Distributors: new mandatory rules for Foreign Suppliers

06 November 2023
Catherine ROBIN

Once again, new mandatory rules apply to commercial negotiation between Suppliers and Distributors (Law No. 2023-221, March 30th, 2023, also called « Loi Descrozaille » or « Egalim 3 »). One of the main rules involves Foreign Suppliers.

The marketing of products on French territory is now governed by the provisions of the French Commercial Code relating to commercial relations (general conditions of sale, sole agreement (“convention unique”), invoicing and payment deadlines, etc.), unfair commercial practices (imbalance, brutal rupture, etc.) and agricultural products and food products. To secure their application, the law has established them as rules of public order and has given French courts exclusive jurisdiction to hear disputes relating to their application.

Thus, Foreign Suppliers who intend to commercialise their products in France must comply with the French Commercial Code, even if they had chosen their national Law to govern their relationship with French Distributors.

There are still many questions and difficulties. Alerion Distribution Team remains at the disposal of foreign companies to assist them with this new issue.