Overview

Selling your product or service in France is like selling it in the United States.  Buying decisions are made based on quality, price, and after-sales service, however in France, language should be noted.  Since August 1994, the “Loi Toubon” requires that all advertising, labeling, instructions, and promotional programs be in French, so we strongly recommend close contact with the Commercial and Agricultural sections in the Embassy, as well as arranging for local legal representation.

Key link: French legislation: Commercial Code

Alternatively, search the Commerce Department’s Market Research Library, available from:

Market Intelligence under Country and Industry Market Reports.

Advertising

Protecting Consumers

Laws against misleading advertisements differ widely from Member State to Member State.  To respond to this issue in the internal market, the Commission adopted a directive, in force since October 1986, to establish minimum and objective criteria regarding truth in advertising.  Under the Directive, misleading advertising is defined as any “advertising which in any way, including its presentation, deceives or is likely to deceive the persons to whom it is addressed or whom it reaches and which, by reason of its deceptive nature, is likely to affect their economic behavior or which for those reasons, injures or is likely to injure a competitor.”  Member States can authorize even more extensive protection under their national laws.  The Directive was amended in October 1997 to include comparative advertising.  Comparative advertising, subject to certain conditions, is defined as “advertising which explicitly or by implication identifies a competitor or goods or services of a competitor.”  Member States can, and in some cases have, restricted misleading or comparative advertising.

The European Union’s Audiovisual Media Services (AVMS) Directive establishes legislation on broadcasting activities allowed within the European Union.  Since 2009, the rules allowing for U.S.-style product placement on television with exceptions.  AVMS was revised to extend the scope of the Directive to video-sharing platforms and social media in some circumstances.  For example, children’s programming is subject to a code of conduct that includes a limit on junk food advertising to children, but organizations subject to the AVMS Directive are encouraged to do more to protect children.  Following the adoption of the 1999 Council Directive on the Sale of Consumer Goods and Associated Guarantees, product specifications, as laid down in advertising, are considered as legally binding on the seller.

In addition, the European Union adopted Directive 2005/29/EC concerning fair business practices in a further attempt to tighten consumer protection rules.  These rules outlaw several aggressive or deceptive marketing practices such as pyramid schemes, liquidation sales when a shop is not closing, and artificially high prices as the basis for discounts in addition to other potentially misleading advertising practices.  Certain rules on advertising to children are also established.

Medicines

The advertising of medicinal products for human use is regulated by Council Directive 2001/83/EC, as amended by Directive 2004/27/EC.  The advertising of medicinal products is forbidden if market authorization has not yet been granted or if the product in question is a prescription drug.  Mentioning therapeutic indications where self-medication is not suitable is not permitted, nor is the distribution of free samples to the public.  The text of the advertisement should be compatible with the characteristics listed on the product label and should encourage rational use of the product.  The advertising of medicinal products destined for professionals should contain essential characteristics of the product as well as its classification.  Inducements to prescribe or supply a medicinal product are prohibited, and the supply of free samples is restricted.

General principles included in the Code for Human Medicines Directive include:

• Drugs that are not authorized cannot be advertised to any person (including the medical profession).
• Prescription-only drugs and drugs containing ingredients that are psychotropic or narcotic must not be advertised to the public.
• All permitted advertising must conform to the summary of product characteristics.
• All permitted advertising must encourage rational use and must not be misleading.
• Member States can choose to ban the advertising to the public of drugs that are reimbursed.
• Companies must establish their own scientific service.  They must retain copies of advertisements published and must provide those to the authorities on request.

 In addition to the directives and regulations that relate specifically to the pharmaceutical industry, these directives and regulations apply:

• Directive 2005/29/EC concerning unfair business-to-consumer commercial practices in the internal market, which regulates advertising to consumers.
• Directive 2006/114/EC concerning misleading and comparative advertising.
• Council Directive 2010/13/EU concerning the provision of audio-visual media service.
• Regulation No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws, as amended by Directive 2015/2302 and Regulation 2017/2394 on cooperation between national authorities responsible for the enforcement of consumer protection laws.

In addition, companies operating in the European Union should refer to applicable codes of practice, in particular the European Federation of Pharmaceutical Industries and Associations Code and the Code of Practice on Relationships between the Pharmaceutical Industry and Patient Organizations.

Resource: Health and Medicine

Nutrition & Health Claims

On July 1, 2007, Regulation 1924/2006 on nutrition and health care claims set EU-wide conditions for the use of nutrition claims such as “low fat” or “high in vitamin C” and health claims such as “helps lower cholesterol.”  The regulation applies to any food or drink product produced for human consumption that is marketed in the European Union.  Only foods that fit a certain nutrient profile (below certain salt, sugar, and/or fat levels) can carry claims.  Nutrition and health claims are only allowed on food labels if they are included in one of the European Union’s positive lists.  Food products carrying claims must comply with the provisions of nutritional labeling Directive 90/496/EC and its amended version, Directive 1169/2011.

In December 2012, a list of approved functional health claims went into effect.  The list includes generic claims for substances other than botanicals.  Disease risk reduction claims and claims referring to the health and development of children require an authorization on a case-by-case basis, following the submission of a scientific dossier to the European Food Safety Authority.  Health claims based on new scientific data must be submitted to the European Food Safety Authority for evaluation, but a more simplified authorization procedure has been established.

Nutrition claims, in place since 2006, can fail one criterion: i.e., if only one nutrient (salt, sugar, or fat) exceeds the limit of the profile, a claim can still be made provided the high level of that nutrient is clearly marked on the label.  For example, a yogurt company can make a low-fat claim even if it has high sugar content but only if the label clearly states, “high sugar content.”  A European Union Register of nutrition claims has been established and is updated regularly.  Health claims, however, cannot fail any criteria.

As part of the EU Green Deal, in May 2020, the Commission announced that it would set nutrient profiles to restrict promotion of food high in salt, sugars, and/or fat as required by Regulation 1924/2006 before the end of 2022.  Currently, the implementation of this Regulation concerning nutrition and health claims made on foods remains incomplete since the Commission did not establish nutrient profiles that had to be set by January 2009.  In that context, nutrient profiles are thresholds of nutrients such as fat, sugars, and salt above which nutrition and health claims are restricted or prohibited.  This proposal builds on the results of the European Union’s Regulatory Fitness and Performance Program (also known as REFIT) evaluation of EU legislation on nutrition and health claims launched in 2015.  Detailed information on the EU’s Nutrition and Health Claims policy can be found on the USEU/FAS website and in the website detailing USDA Food and Agricultural Import Regulations and Standards EU 28 2020.

Key Link: EU Register of Nutrition and Health Claims:

Food Information to Consumers

In 2015, the European Union adopted a new regulation on novel foods (2015/2283), which amends the provision of food information to consumers (1169/2011).  Currently, the Food Information to Consumers Regulation is the main EU labelling legislation.  Novel foods and food ingredients must not present a danger for the consumer, mislead the consumer, and should not differ from the ingredients that they are intended to replace to such an extent that normal consumption would represent a nutritional disadvantage for the consumer.  The European Commission may decide on its own initiative or upon a request by a Member State, by means of implementing acts, whether a particular food falls within the definition of novel food.

The Common Market Organization is a set of rules which regulates agricultural markets in the European Union and establishes the specific information that must accompany fishery and aquaculture products sold to consumers and mass caterers.  These requirements compliment the EU rules on the provision of food information to consumers and contribute to more transparency on the market as they enable consumers to make informed choices on the products they buy.

More information on the European Union’s new food labeling rules can be found on the website of the Foreign Agricultural Service at EU Labelling Requirements and in the USDA Food and Agricultural Import Regulations and Standards EU 28 2020. Provision on Food Information

Food Supplements

Directive 2002/46/EC harmonizes the rules on labeling of food supplements and introduces specific rules on vitamins and minerals in food supplements.  Ingredients other than vitamins and minerals are still regulated by Member States.

Regulation 1925/2006, applicable as of July 1, 2007, harmonizes rules on the addition of vitamins and minerals to foods.  The regulation lists the vitamins and minerals that may be added to foods.  This list was most recently revised in 2014.  A positive list of substances other than vitamins and minerals has not been established yet, although it is being developed.  Until then, member state laws will govern the use of these substances.

Key Link: Labelling Nutrition Supplements

Tobacco

The EU Tobacco Advertising Directive bans tobacco advertising in printed media, radio, and internet as well as the sponsorship of cross-border events or activities.  Advertising in cinemas and on billboards or merchandising is allowed, though these are banned in many Member States.  Tobacco advertising on television has been banned in the EU since the early 1990s and is governed by the Audiovisual Media Services Directive.  A 2016 revision to the legislation includes the requirement for bigger, double-sided, health pictorial warnings on cigarette packages and possibility for plain packaging along with health warnings and tracking systems.

Key link: Tobacco Products

Pricing

France is a highly competitive market in which the French importer is looking for the best quality at the lowest price.  American products and technology are highly regarded but do not command higher prices than comparable products.  It is important to remember that while France is a significant market, it is also one of the ports of entry to the European Union and associate country-members for many imports with final destinations all throughout Europe and other overseas markets.  This characteristic gives local buyers access to a wide range of products at competitive prices.

U.S. companies are advised to quote prices on a Cost Insurance Freight (CIF) basis, surface, or airfreight.  This is standard practice for most exporters since it facilitates price comparison between EU suppliers.  Import duties are usually quoted on a delivered to warehouse basis.

Local Professional Services

Local service providers focusing on EU law, consulting, and business development can be viewed on the website maintained by the Commercial Service at the U.S. Mission to the European Union.

For information on professional services located within each of the EU Member States, please see EU member state Country Commercial Guides which can be found at the following website EU Member States’ Country Commercial Guides

Value Added Tax (VAT)

The EU’s VAT system is semi-harmonized.  While the guidelines are set out at the EU level, the implementation of VAT policy is the prerogative of Member States.  The EU VAT Directive allows Member States to apply a minimum 15% VAT rate, however, they may apply reduced rates for specific goods and services or temporary derogations. Therefore, the examination of VAT rates by Member State is strongly recommended.  These and other rules are laid out in the VAT Directive.

The EU applies Value Added Tax (VAT) to sales by non-EU based companies of Electronically Supplied Services (ESS) to EU-based non-business customers.  U.S. companies that are covered by the rule must collect and submit VAT to EU tax authorities.  From January 1, 2015, all supplies of telecommunications, broadcasting, and electronic services are taxable at the place where the customer resides.  In the case of businesses, this means either the country where it is registered or the country where it has fixed premises receiving the service.  In the case of consumers, it is where they are registered, have their permanent address, or usually live.

As part of the legislative changes of 2015, the Commission launched the Mini One Stop Shop (MOSS) scheme, the use of which is optional.  It is meant to facilitate the sales of ESS from taxable to non-taxable persons (B2C) located in Member States in which the sellers do not have an establishment to account for the VAT.

This plan allows taxable persons (sellers) to avoid registering in each Member State of consumption.  A taxable person who is registered for the Mini One Stop Shop in a Member State (the Member State of Identification) can electronically submit quarterly Mini One Stop Shop VAT returns detailing supplies of ESS to non-taxable persons in other Member States (the Member State(s) of consumption), along with the VAT due.

The Commission has received numerous complaints in relation to the new rules on ESS and is in the process of revising them (draft proposal: https://www.consilium.europa.eu).

The most important pieces of legislation on VAT are the EU VAT Directive 2006/112/EC and its Implementing Regulation 282/2011.

Further information relating to VAT on ESS

Key links to French VAT: Value Added Tax  

Rates in France – French Ministry of economy.

French VAT System

Efficiency (EU Economic Brief July 2016; PDF)

Sales Service/Customer Support

Conscious of the discrepancies among Member States in product labeling, language use, legal guarantee, and liability, the redress of which inevitably frustrates consumers in cross-border shopping, the EU institutions have launched several initiatives aimed at harmonizing national legislation.  Suppliers within and outside the EU should be aware of existing and upcoming legislation affecting sales, service and customer support.

Product Liability

Under the 1985 Directive on Liability of Defective Products, amended in 1999, the producer is liable for damage caused by a defect in his product.  The victim must prove the existence of the defect and a causal link between defect and injury (bodily as well as material).  A reduction of liability of the manufacturer is granted in cases of negligence on the part of the victim.  The first step in the review process of this law was launched at the end of 2016.

Key link: Liability of Defective Products

Product Safety

The 1992 General Product Safety Directive introduced a general safety requirement at the EU level to ensure that manufacturers only place safe products on the market.  It was revised in 2001 to include an obligation on the producer and distributor to notify the Commission in case of a problem with a given product, provisions for its recall, the creation of a European Product Safety Network, and a ban on exports of products to third countries that are not deemed safe in the EU.  The legislation is still undergoing review.

Key link: Product Safety Legislation

Legal Warranties and After-sales Service

Under the 1999 Directive on the Sale of Consumer Goods and Associated Guarantees, professional sellers are required to provide a minimum two-year warranty on all consumer goods sold to consumers (natural persons acting for purposes outside their trade, businesses, or professions), as defined by the Directive.  The remedies available to consumers in case of non-compliance are:

• Repair of the good(s).
• Replacement of the good(s).
• A price reduction; or
• Rescission of the sales contract.

Other issues pertaining to consumers’ rights and protection, such as the New Approach Directives, CE marking, quality control and data protection are dealt with in the Trade Regulations section of this report.

Key link: Sales and Guarantees

Industry Associations & Government Agencies

Organizations in Brussels focused on representing U.S. business interests and engaging with EU institutions including the European Commission, European Parliament, and the Council include: AmCham EU at https://www.amchameu.eu/.

Principal Business Associations in France

• American Chamber of Commerce in France
• Visit USA Committee France – Office Tourisme USA in France
• European-American Chamber of Commerce in France
• Importers’ Association for Mechanics and Electronics - Ficime
• French Employers’ Association - Medef and Medef International
• French Federation of Small and Medium Sized Firms - Cpme Confederation Des Petites Et Moyennes Entreprises
• French Association of Fast-growing Corporations - Croissance Plus
• French Digital Consulting Industry Association - Syntec Numérique
• French Engineering Industry Association - Syntec Ingénierie
• French Pools & Market Survey Industry Association - Syntec Etudes Marketing Et Opinion
• French Public Relations Industry Association - Syntec Conseil En Relations Publics
• French Hiring Consulting Industry Association - Syntec Conseil En Recrutement
• French Career Development Consulting Industry Association - Syntec Conseil En Évolution Professionnelle
• French Professional Training Association - Ffp
• French Event Organizers Industry Association - Unimev
• Appliance Manufacturers’association - Gifam
• Automotive Equipment Industry Association – Fiev
• Bakery Equipment Industry Association – Ekip Les Equipements Du Gout
• Chemical Industry Association – France Chimie
• Federation Of Electric and Electronic Industry – Fiee
• Federation Of Jewelry Gifts, Diamonds, Gems, Pearls & Related Activities – Ufbjob
• French Toy Industry – Fjp
• French International Wholesale Trade Assiciation – Cgi
• French Aeronautics and Space Industry Association – Gifas
• French Automobile Manufacturers’ Association – Ccfa
• Gas And Petroleum Industry Association - Gep-Aftp
• Laboratory Equipment Industry Association – Fabri Labo
• Measuring And Control Equipment Industry Association – Sym Syndicat De La Mesure
• Mechanical Engineering Industry Association – Fim Fédération De La Mécanique
• Medical Industry Association = Snitem
• National French Association of Advertising Items – 2fpco
• National French Building Federation - Ffb
• National French Federation of Public Works - Fntp
• National Confederation of Wood Industry for Construction – Uicb
• French Association of Furniture Industry Unifa
• National Wood Industry Federation - Fnbois
• French Nautical Industry Association – Fin Fes Industries Nautiques
• French Optical Industry Association - Gifo
• French Paints & Inks Industry Association – Fipec
• Paper, Cardboard, Cellulose Industry Association – Copacel
• Perfume, Beauty, And Toiletery Industry Association – Febea
• French Pharmaceutical Industry Association – Leem
• National Union of Printing & Communication – Unic
• French Plastic Manufacturers’association – Plasteurope
• French Railroad Industry Federation – Fif Fédération des Industries Ferroviaires
• Naval Construction Industry Group - Gican
• French Sporting Good Industry Association - Filieresport
• French Telecommunication Industry Association - Fftelecoms
• French Textile Industry Association – Union Des Industries Textiles
• Union Of Plastic & Rubber Industry Distributors – Ucaplast
• French Veterinarian Drug Industry Association – Simv

Market Research Firms in France

• Directory Market Research Firms – Syntec Conseil Etudes

U.S. Banks In France

American Express International Banking Corporation France

• Bank Of America France
• Bank Of New York France
• Citibank France
• JP Morgan France
• French Banks
• Federation Bancaire Francaise
• Societe Generale
• BNP-Paribas
• Credit Agricole
• Credit Industriel Et Commercial
• Credit Lyonnais
• Natixis

Logistics And Transportation Services in France:

• Federation Des Entreprises De Transport Et De Logistique De France
• Association Francaise Du Transport Routier International

Providers

• Air France Cargo
• British Airways World Cargo
• DHL l International
• Expeditors International France Sa
• Fedex
• Prologis-Garonor
• Geodis
• Regus
• Sncf Fret
• UPS

Country Government Agencies:

• French Presidency - Elysee.Fr
• French Government - Gouvernement.Fr

Other Country Government Sub-Agencies:

• French Economic Development Agency - Business France
• French Investment Bank - Bpi France
• French Testing Laboratory - Laboratoire National D’essai - L.N.E.
• Official Gazette / Journal Officiel
• National French Standards Association/Association Francaise De Normalisation – Afnor
• National Institute of Industrial Property / Institut National De La Propriete Industrielle – Inpi
• French Accreditation Agency Cofrac
• French Label Nf
• French Ministry of Economy Web on CE Marking – Marquage CE Dgccrf
• Afnor Resources on CE Marking & Standards
• Food Products USDA/FAS Reports France
• USADA/FAS Exporters’ Guide France

EU Websites

See: European Union Country Commercial Guide