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Tuesday, August 23, 2022Regulation

VBER: what's changing for selective cosmetic distribution

REC : ce qui change pour la distribution sélective cosmétique

On June 1, 2022, the European Commission adopted a new Vertical Block Exemption Regulation (VBER) which specifies certain competition rules. CosmeticOBS met Xavier Guéant, Legal Director of FEBEA, to decipher the new specificities of this text and the direct implications for beauty professionals.

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“The VBER is an exemption regulation that specifically targets vertical agreements,” explains Xavier Guéant in a preamble. “Its objective is to ensure that competition between suppliers and distributors (vertical scheme) works and is beneficial to the consumer at the end of the chain.” This text sets the rules for the distribution of certain categories of networks (selective distribution for cosmetics, for example) between these different stakeholders (suppliers and distributors).

The VBER is important for the beauty sector. It provides a framework that helps manufacturers to ensure the tightness of their distribution network. This allows, among other things, to avoid selling stocks to non-approved partners or to determine the sales protocol to be put in place in order to maintain a quality of service and preserve the brand image.

Evolution of the VBER

The European Commission has mainly focused the revision of its texts on the evolution of online sales, given the strong growth of this distribution channel and the development of platforms.

Differential trading conditions and dual pricing
As soon as a distributor sells its supplier’s products in physical stores and on the Internet, it is now possible to differentiate the applicable commercial conditions, and this differentiation can go as …

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