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P&G, Coty and Chanel Fined for Import Agreements in French Territories

France’s competition authority handed down fines totaling 176,000 euros.

PARIS — France’s competition authority has handed down fines totaling 176,000 euros to Procter & Gamble, Coty and Chanel, among other companies and their wholesale importers, for having set up exclusive import agreements in the Antilles, Guyana and Réunion Island.

The Lurel Law, dating from March 22, 2013, prohibits exclusive agreements to import to the French overseas territories. The law was established to address specific problems related to the region.

“Procter & Gamble, Coty and Chanel and their wholesale importers maintained or established, after the entry into force of the Lurel Law, exclusive importation for the distribution of perfumes and cosmetics products in Guadeloupe, Martinique, French Guyana and La Réunion,” the authority said in a statement Tuesday.

The fragrance and beauty brands concerned include Puma, Gucci, Montblanc, Rochas, Dolce & Gabbana, Calvin Klein, Marc Jacobs, Tiffany, Balenciaga and Bourjois.

“These practices hindered the growth of competing wholesale importers and deprived retailers of access to competing wholesalers for their supplies of perfumes and cosmetics,” the authority said. “They resulted in increased costs for retailers and, consequently, the prices of perfumes and cosmetics for consumers in the French overseas territories.”

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