Rules in France
The French law no 2008-776 (of the 4.8.08, official journal of the 5th), which has come into force on January 1st, 2009, allows dealers to offer discounts and to organize clearance sales at any time. Moreover, it requires dealers to inform customers about the terms and conditions of these operations, referring to an act of the 31st of December 2008.
Clear information about store cards
In France, whenever a dealer advertises a discount in his store, there has to be an advertisement inside the point of sale to inform clients about the terms and conditions. Store cards are included, since very often only card owners can benefit from the discounts which are being offered. However, many among them are not aware of the exact conditions concerning those special discounts: for example, there might be discounts exclusively available to a certain age group.
In addition, in case of a clearance sale along with the catchword “everything MUST go”, the dealer has to stop advertising as soon as the concerned stocks have run out.
The basis price has to be available
In France, factory outlets and sales via internet may indicate the basis price using two methods:
- Either the dealer chooses to set the basis price to the lowest value the item has experienced within the last 30 days preceding the sale (it may also refer to a similar item), or he maintains the recommended retail price given by the manufacturer or importer.
- In case there is neither a recommended retail price nor a similar item available, the dealer might refer to a price that has been suggested beforehand and which can actually date up to three years.
Nevertheless, the customer has to be made aware of where the basis price has its origins and the store as well as the website has to be able to prove that the basis price is a realistic one.
July 2009
