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French Consumer Law

Article L. 324-1 (former Article L. 324-6) of the Internal Security Code punishes organizers of prohibited gambling and games of chance - and therefore lotteries - where they are natural persons, by three years' imprisonment and a fine of EUR 90,000 , which can be increased to seven years' imprisonment and a fine of EUR 200,000 if the offense is committed by an organized gang. Further, new Article …

Sanctions

Article L. 324-1 (former Article L. 324-6) of the Internal Security Code punishes organizers of prohibited gambling and games of chance - and therefore lotteries - where they are natural persons, by three years' imprisonment and a fine of EUR 90,000 , which can be increased to seven years' imprisonment and a fine of EUR 200,000 if the offense is committed by an organized gang. Further, new Article L. 324-3, which is substantially the same as former Article L. 324-9, para. 22 , provides that the issue or distribution of prohibited games of chance and gambling media is punishable by a fine of EUR 100,000, with the court able to increase the fine to up to four times the amount of advertising expenditure for the illegal transaction.

New Article L. 324-13 (former Art. L. 324-7) of the Internal Security Code also provides for additional penalties:

-  the prohibition of civic, civil and family rights under the conditions provided for in Article 131-26 of the Criminal Code;

-  the confiscation of the movable or immovable property  used directly or indirectly in the commission of the offense or the proceeds thereof, including gambling or lottery funds or effects, as well as the furniture and household effects furnishing or decorating the premises, with the exception of items liable to give rise to restitution;

- the  display or dissemination of the decision pronounced under the conditions laid down in Article 131-35 of the Criminal Code;

-  the definitive closure or for a period of not more than five years of the establishments or of one or more of the establishments of the undertaking used to commit the offenses in question;

-  the prohibition either to carry out a public function or professional or social activity in the exercise or in the course of the exercise of which the offense was committed, or from exercising a commercial or industrial profession, from directing, administering, managing or controlling in any capacity whatsoever, directly or indirectly, for their own account or on behalf of others, a commercial or industrial undertaking or a commercial company .

Legal persons found criminally liable for offenses committed on their behalf by their organs or representatives are liable to a fine equal to five times that provided for natural persons , i.e. EUR 450,000. By the combined application of Articles L. 324-14 (former Art. L. 324-8) of the Internal Security Code and 131-39 of the Criminal Code, the court can also order the dissolution, the closure, definitive or for a period of no more than five years, of one or more establishments of the undertaking used to commit the offenses in question, confiscation as provided for natural persons, or the display of the decision, either by press or by any means of communication to the public by electronic means. In addition, a prohibition may be imposed, for a period of up to five years, from applying for the approval provided for in Article 21 of Law No 2010-476 and the authorization provided for in Article L. 321-1 and, where applicable, the withdrawal of such approval or authorization if the legal person holds it at the time of the judgment.

The offenses provided for in Articles L. 324-1, L. 324-3, L. 324-4, L. 324-8, L. 324-8-1 and L. 324-11  of the Internal Security Code may be established and prosecuted within the framework of the investigative powers of officials authorized by the Ministry of the Economy and Finance, in accordance with Articles L. 450-1, L. 450-2, L. 450-3 and L. 450-8 of the Commercial Code (Internal Security Code, Article L. 324-15 (formerly L. 324-10).

Organizers of prohibited lotteries may also be subject to civil sanctions. Consumers who establish direct and personal injury are entitled to bring a civil action . In accordance with Article L. 621-1 (former Article L. 421-1) of the Consumer Code, approved consumer associations may also act to defend the collective interest of consumers . Finally, an action for unfair competition may be brought by competitors justifying direct and personal injury, as well as by a professional trade union, duly authorized for this purpose, in case of harm to the collective interest of the profession .

 Article L. 324-6, paragraph 2, of the Internal Security Code provides that the confiscation of lottery machines is mandatory and that their destruction may be ordered by the court.

"A fine of EUR 100,000 shall be imposed on persons who have peddled or distributed tickets or who, through notices, announcements, posters or by any other means of publication, have advertised the existence of prohibited lotteries or facilitated the issuance of tickets, it being noted that, in this case, the court may increase the amount of the fine to four times the amount of the advertising expenditure devoted to the illegal operation ".

 Article L. 324-7, 2°, paragraph 2, of the Internal Security Code provides that: "in the case of real estate lotteries, the confiscation pronounced against the owner of a property included in a lottery is replaced by a fine of up to the estimated value of this property."

 Article L. 324-7, 5°, last paragraph, of the Internal Security Code specifies that these prohibitions of exercise may be imposed cumulatively.

 Pursuant to Article 131-38 of the Criminal Code.

Cette disposition punit de trois ans d'emprisonnement et de 200 000 euro d'amende les interdictions prévues à l'article L. 322-12, à savoir la vente ou l’exportation, par quelque moyen que ce soit, des jeux de loterie relevant du monopole de la Française des Jeux, l’exploitation d'une quelconque façon de leurs résultats sans autorisation, et la vente ou la revente de ces jeux à un prix supérieur à leur valeur d'émission ou au montant de la prise de jeu correspondante, et prévoit que ces peines sont portées à sept ans d'emprisonnement et à 500 000 euros d'amende lorsque l'infraction est commise en bande organisée.

 For an example, TGI Cherbourg, 29 October 1991, LawLex200300002532JBJ.

 See Cass. crim., 22 August 1990, LawLex200400001549JBJ: the civil action brought by a consumer association in respect of a prohibited lottery is admissible, as such an offense harms not only the general interest but also the collective interest of consumers. 

 CA Paris, 4 March 1975, JCP G, 1976, II, 18237, action of the French grocery and food union, against a supermarket organizer of a lottery.

French Consumer Law

243. Sanctions

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243. Sanctions

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