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Egalim law: Attal announces “very heavy sanctions” against three companies

2024-01-26T18:09:00.230Z

Highlights: Gabriel Attal announces “maximum pressure” on commercial negotiations between suppliers and distributors. This is a response to those who question the effectiveness of the Egalim law. The law is supposed to “protect” the price of the raw material agricultural sector in commercial negotiations involving the agri-food industry and mass distribution. Attal: “We are going to impose three very heavy sanctions against important companies which do not respect Egalin’” The law provides that fines may be imposed, of up to 2% of the turnover of the sanctioned company.


In the midst of the protest movement, Gabriel Attal announces “maximum pressure” on commercial negotiations between suppliers and


This is a response to those who, among the mobilized farmers, question the effectiveness of the Egalim law (parts 1 and 2 of which were adopted in 2018 and 2021), supposed to “protect” the price of the raw material agricultural sector in commercial negotiations involving the agri-food industry and mass distribution.

“Egalim, it was progress.

The challenge is that Egalim is fully applied,” declared the Prime Minister this Friday while traveling in Haute-Garonne.

“The objective is clear: to have Egalim respected everywhere, without exception,” he added.

To this end, the government has been announcing for several days the strengthening of controls by the Directorate General for Competition and Fraud Control (DGCCRF), with the mobilization of 100 inspectors.

VIDEO.

Angry farmers: “A sanction of 2% of turnover” for distributors who do not respect the Egalim law

This Friday noon, the Minister of the Economy Bruno Le Maire already indicated that these controls had “revealed a certain number of infractions” committed by manufacturers and distributors in the context of price negotiations and that “injunctions » would be sent to the companies concerned which would only have “a few days” to comply.

Fines of up to 2% of turnover

Gabriel Attal went further in his announcements: “We are going to impose three very heavy sanctions against important companies which do not respect Egalim,” he affirmed, without however disclosing the names.

The law provides that fines may be imposed, of up to 2% of the turnover of the sanctioned company, to suppliers and distributors who transgress the rules, for lack of transparency, by failing to clearly mention, for example, the price of agricultural raw materials.

There is no assurance at the moment that the procedures initiated will actually go as far as sanctioning the companies in the sights - three agri-food manufacturers.

“For the moment, we are not yet at the fine stage,” explains Bercy.

These companies received an injunction.

Then comes the adversarial phase and the possibility for the companies concerned to comply with the law.

Until now, according to Bercy, the government had increased checks but favored education and warnings - 500 checks carried out in 2022. These announcements come a few days before the end of negotiations between suppliers and distributors, on January 31.

These discussions, carried out each year, make it possible to negotiate the prices which will be displayed on store shelves from February for the coming year.

Source: leparis

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