Caution needed in entering deals with French mass retailers

For many suppliers, trading terms discussed with French mass merchandisers are, at least, murky if not simply unfair. Auchan, a large chain of French hypermarkets, has been condemned on 2011, Sept 7th by the Lille court of commerce to pay an €1 million fine; plaintiff was the French government itself.

The litigation has been on the back burner for years (if not decades) but reached the boiling point. At stake, rows of unfair clauses in agreements signed with suppliers like a rate of service (if not respected, penalties) and a "review" of agreed prices within the covered contract period. No doubt that an appeal is likely to follow.