This book provides a wide-ranging review of the European rules relating to distribution: exclusive purchase and exclusive supply, exclusive and selective distribution, motor vehicle distribution, franchises, commercial agents.

French Distribution Law

Bans on active sales outside the sales area are possible only in the context of exclusive distribution systems where the dealers are granted a territory with no competition from other network members. Such bans are exempted  under those systems, but constitute a hardcore restriction in selective distribution networks, subject to the possibility for the manufacturer to prevent a network member from operating out of an unauthorized place of establishment .

Since most manufacturers have currently chosen selective distribution, the solutions under the former regulations only apply in a residual manner. Pursuant to Regulation No 123/85 of 12 December 1984, the courts validated a clause that prohibited an exclusive distributor from carrying out active sales outside the specified sales area and the possibility to terminate the contract in the event of breach of that provision , and, under Regulation No 1475/95 of 28 June 1995, an action for unfair competition was allowed for a dealer who was the victim of incursions into its territory against network members in breach of their obligations .  Under the rules currently in force, the Court of Cassation considers that in a selective distribution network, sales made by a member of the network on the territory of another through a business finder are not unlawful . 

Regulation No 2022/720 of 10 May 2022, Art. (4)(b)(i).

Regulation No 2022/720, Art. 4(c)(i)(3). For an example of application under Regulation No 1400/2002, see Cass. com. 18 November 2008, LawLex200800002120JBJ.

TGI Paris, 13 October 1993, LawLex200200004792JBJ.

Cass. com., 29 January 2008, LawLex200800000153JBJ, approving CA Pau, 23 October 2006, LawLex200800000400JBJ. See also CA Reims, 15 January 2007, LawLex200800002192JBJ.

Cass. com., 13 June 2018, LawLex201800000946JBJ, 

278. Ban on active sales.