Pierre Fabre warned internet sales ban breaks competition law
ECJ criticizes sales restrictions
French cosmetics company Pierre Fabre has been warned its ban on distributors selling certain products via the internet probably breaks EU competition law.
European Court of Justice (ECJ) advocate general Jàn Mazák’s formal opinion criticises this restriction as “disproportionate”.
The company’s distribution contracts for its Avène, Klorane, Galénic and Ducray brands insist all France sales be made in a physical space, with a qualified pharmacist present. Mazák dismissed Pierre Fabre claims the ban is justified on public health grounds, saying “it is clear… such products are not medicinal”. He added there was no French or EU regulation insisting on physical pharmacy sales.
He also said it was unlikely selective distribution agreements allowed by the court preserving goods’ aura and image were applicable. “Given that a manufacturer could impose appropriate, reasonable and non-discriminatory conditions on internet sales… protecting the image of its products, a general… ban on internet sales could only be proportionate in very exceptional circumstances,” he said.