SNOWBALL SALES OR SERVICES
LexInter | September 15, 2019 | 0 Comments

Snowball Sales or Services

Article L122-6

 

(Law n ° 95-96 of February 1, 1995, art. 13 Official Journal of February 2, 1995)

The following are prohibited:
1 ° The sale practiced by the so-called “snowball” process or any other similar process consisting in particular of offering goods to the public by making them hope to obtain these goods free of charge or against delivery of ” a sum lower than their real value and by subordinating the sales to the placement of vouchers or tickets to third parties or to the collection of memberships or registrations;
2 ° The fact of proposing to a person to collect memberships or to be registered on a list while making him hope for financial gains resulting from a geometric progression of the number of people recruited or registered.
In the case of sales networks formed by chain recruitment of members or affiliates, it is prohibited to obtain from a member or affiliate of the network the payment of a sum corresponding to an entry fee or to the ” acquisition of materials or services for educational purposes, training, demonstration or sales or any other similar equipment or service, when this payment leads to payment or the attribution of an advantage benefiting one or more members or network affiliates.
In addition, it is forbidden, in these same networks, to obtain from a member or affiliate the acquisition of a stock of goods intended for resale, without guarantee of recovery of the stock under the conditions of the purchase, minus possibly an amount not exceeding 10%. 100 of the corresponding price. This take-back guarantee may however be limited to a period of one year after purchase.

Article L122-7
 

(Law n ° 92-1336 of December 16, 1992 art. 322, art. 335 Official Journal of December 23, 1992 in force on March 1, 1994) (Ordinance n ° 2000-916 of September 19, 2000 art. 3 Official Journal of September 22, 2000 in force on January 1, 2002)

Without prejudice to the application, where applicable, of the penalties provided for in articles 313-1, 313-7 and 313-8 of the penal code, any violation of this section will be punished by a fine of 4,500 euros and a imprisonment for one year.
The delinquent may also be condemned to reimburse those of his customers who could not be satisfied with the sums paid by them, without being able to have recourse against those who obtained the goods.

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