Tuesday, October 16, 2012Congresses

Promotions, packs or value bundles: which legal status?

©L'Observatoire des Cosmétiques

There are several ways to promote and sell products during a promotional campaign (which may comprise the sets designed for Christmas, Mother’s Day or Father’s Day). Gift-box, sales with incentives, lotteries, gifts: each of these options comes with specific definitions and is submitted to different regulations. The French FEBEA federation has reminded its members of this on September 28.

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Promotional set or Christmas set: the name given the operation is of the utmost importance to define which kind of selling frame it comes in, and to know the applicable regulation.

Gift-box

Selling sets is defined by the L. 122-1 article of the Code of Consumption: sets sales, also called related sale transactions or combined sales, are based on several products sold together for a price that is given as cheaper than for the same products sold individually.

Clearly sets sales means a price premium for the consumer, the price of the set being lower than the total price of every item taken separately.
On the other hand, the article does not say anything about the kind of products that make the set. The previous version made it mandatory that all the products be similar, when, now, the items may be similar or not.

A law, published on 17 May 2011, streamlined the regulation on sets sales. It is now forbidden if, and only if, it is an unfair trading practice.

In order to be valid, a sets sale shall comply with several requirements:
• The consumer must be allowed to buy, from the same distributor, every individual item. If …

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