LONDON (Reuters) – European retail and wholesale federation EuroCommerce has filed a formal complaint with the European Commission over a French law that limits promotions on certain consumer products.
EuroCommerce claims that the Descrozailles law violates European Union rules on the free movement of goods and services within the single market. In a press release published on Thursday, the federation called on the European Commission to “take urgent measures”.
Christel Delberghe, director general of EuroCommerce, said the law prevented retailers and wholesalers from purchasing products at a pan-European level, preventing them from offering lower prices to consumers.
Soaring inflation has exacerbated tensions between supermarket chains and manufacturers in Europe over the price of consumer products.
The CEO of Carrefour, Alexandre Bompard, estimated that the continued rise in prices on the shelves was notably linked to manufacturers who refuse to renegotiate despite the decline in raw material prices.
He also called for a one-year moratorium on the application of the Descrozailles law which leads to limiting promotions, particularly on beauty, hygiene and care products.
The Descrozailles law, passed in March 2023, should come into force in March 2024.
(Reporting Helen Reid; Camille Raynaud)
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