DGCCRF new power to impose daily penalties on its injunctions for breach of the French consumer code
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France
As a senior associate in our Paris IT, commercial and dispute resolution teams, and a member of the Paris Bar, I advise our clients on both contentious and non-contentious matters.
Partner
France
I'm a partner in our international Commercial group, based in Paris, where I provide our clients with strategic commercial advice.
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The Law no. 2023-451 of 9 June 2023, strengthened by the Decree no. 2023-887 of 20 September 2023 which came into force on 22 September 2023, has given the DGCCRF the power to impose a daily penalty on its injunctions for breaches of the French Consumer Code (Articles L. 521-1 and seq. and R. 521-1 and seq. of the French Consumer Code). As a reminder, the DGCCRF is the competent authority for ensuring compliance of the consumer products and services and protecting consumers and the fairness of competition. In addition to its investigative powers, the DGCCRF has the power to issue injunctions, and the strengthening of its powers reflects its central role in the implementation of the French Consumer Code.
The daily penalty cannot exceed (i) €3,000, the total amount of penalties being capped at €300,000, or (ii) 0.1% of the turnover for infringements punishable by a fine of €75,000 or more, the total amount of penalties being capped at 5% of the turnover. The daily penalty runs from the day following the expiration of the time limit set for the professional to comply with the injunction.
In addition, in case of non-compliance with the publicity measure ordered by the DGCCRF, the authority may give the professional formal notice to publish the decision under a daily penalty of €150 from the date of notification. The total amount of the penalty is capped at €50,000.
These new powers granted to the DGCCRF are particularly important in the online commercial influence sector. Indeed, by giving the DGCCRF the power to impose a daily penalty on its injunctions, the regulation aims to ensure that influencers comply with these new obligations. By way of illustration, the DGCCRF has had the opportunity to sanction around twenty influencers since the summer for failing to comply with their obligations to mention that content was sponsored, or for promoting surgery, gambling or sports betting. In addition, this regulation is in line with the “name and shame” initiative launched by the DGCCRF to combat the excesses of influencers on social networks.
Therefore, the DGCCRF is now more than ever the reference authority for ensuring that influencers comply with all the obligations of the Consumer Code.
