COMPETITION • FRENCH LAW • RESTRICTIVE AGREEMENTS
Qualitative discounts are price reductions that a supplier grants to its distributor in return for services rendered by the latter in order to maintain or strengthen its brand image, develop its sales and intensify competition with other brands. Qualitative discounts do not fall within the scope of Article L. 420-1 of the Commercial Code when they are not accompanied by the quantitative selection of distributors, are defined objectively, are not applied in a discriminatory manner, and have neither the object nor the effect of limiting the freedom of retailers to autonomously determine their resale price policy. Their conditions of legality are in line with those applicable to selective distribution. Services such as the demonstration of products at the request of customers or technical assistance to the consumer (repair and delivery services) are likely to justify the granting of qualitative discounts.
