The French Government will finally publish the ordinance on prices

The ordinance on the threshold for reselling at a loss and discounts measures will be presented to the French Cabinet ministers. They should be implemented from 1st of February 2019. Initially, the increase of the threshold for reselling at a loss (+10%) will be compulsory from 1st February.

Regard the measures to applying for discounts; they will take place in two stages. From 1st January 2019, it will be forbidden to offer a discount superior to 34%. From 1st of March 2019, the settlement for discount will apply for a maximum volume of 25%.

While this will affect retailers, Systeme U and Leclerc say they are committed and engaged in improving the income of producers through trade negotiations. As for the French trade association for retail and distribution, they highlight that the actors of the sector have not yet agreed on the indicators for the production cost, market price and quality. All of which should be used for negotiations between the industrials and distributors.

Merlaud 10th December 2019, www.lineaires.com
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