PREDATORS PRICES

Abusively low prices

Article L 420-5 of the Commercial Code prohibits the offer to the consumer of excessively low prices (often qualified as “predatory prices”), defined as prices lower than the costs of production, processing and marketing, since such offers or practices have as their object or may have the effect of eliminating from a market or preventing access to the market of a company or one of its products.

When the products are resold as they are, the applicable provisions are those of resale at a loss.