Obligation to report logistics penalties to the authorities

Since the law of 30 March 2023, known as the "Descrozailles" Act, came into force on 1^er April 2023, suppliers and distributors have an obligation to inform annually the authorities of any logistical penalties applied between them.

In November 2023, the French Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) updated its guidelines to provide practical details on this new annual reporting obligation.

OBLIGATIONS FOR DISTRIBUTORS

• Before 31 December 2023: notify the authorities of the amounts of the logistical penalties imposed on its suppliers in 2021 and 2022 respectively, detailing them month by month, as well as the amounts actually received.

• By 31 December each year (starting in 2023), notify the authorities of the amounts of logistical penalties it has imposed on its suppliers over the last twelve months, as well as the amounts actually received. These amounts should be detailed for each month.

The penalties imposed must be understood as corresponding to the penalty invoices issued but not yet collected. The amounts actually collected correspond to the penalties recovered by the distributor.

OBLIGATIONS FOR SUPPLIERS

• By 31 December each year (starting in 2023), notify the authorities of the amounts of logistics penalties imposed on it by its distributors over the last twelve months, as well as the amounts it has actually paid.

The logistical penalties imposed should be understood as those corresponding to penalty invoices received but not yet paid. The amounts actually paid correspond to the penalties settled by the supplier.

This data must be broken down month by month and store by store.

SANCTIONS

The authorities may impose an administrative fine:

• Up to EUR 75,000 for an individual. That maximum amount will be increased to EUR 150,000 in the event of a repeat offence

• Up to EUR 500,000 for a legal entity. That maximum amount will be increased to EUR 1,000,000 in the event of a repeat offence.

IN PRACTICE

⇒ How should this information be sent to the DGCCRF? A model table will shortly be sent to the professional organisations representing suppliers and distributors. Otherwise, the supplier or distributor is free to present this information in a format of its choice.