A new law that aims to protect the interests of manufacturers of non-food consumer products will come into effect on March 1, 2024. The law, known as Egalim III, will limit the discounts that can be applied to products such as laundry detergent, shower gel, or diapers to 34% of their value.
The law follows the example of the Egalim I law, which was adopted in 2018 and imposed the same limit on discounts on food products. The purpose of the law is to ensure a fair balance between suppliers and distributors, especially for small and medium-sized enterprises (SMEs) that may struggle to compete with large retailers on price.
Discount limits in France were expanded to hygiene products on March 1, 2024.
Public
France
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
672
Content accuracy validation date:
12.03.2024
Content accuracy validation time:
08:00h
Products affected by the discount limits are:
- Household cleaning products, such as dishwashing liquid, bleach, or all-purpose cleaners.
- Personal care products, such as shampoo, toothpaste, or deodorant.
- Beauty products, such as makeup, perfume, or skincare.
- Baby products, such as wipes, diapers, or baby food,.
- Pet products, such as pet food, litter, or toys,.
The law does not ban discounts altogether but regulates them to prevent excessive price reductions that may harm the profitability and sustainability of the manufacturers. The law hopes to enable the companies to earn higher margins and support the agri-food industry.
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