The law lays down the principle of a ban for every trader, businessman, craftsman or professional to offer for sale or sell to the consumer a good or a service at a loss. The same ban applies to wholesalers every time the retailer is legally or economically dependent on the wholesaler.
A sale at a loss of a good is considered to be any sale at a price which is not at least equal to the price at which the product was invoiced at the time of stocking, or which would have been invoiced in case of re-stocking, if this latter price is lower. An invoiced price is understood to be the price effectively paid, minus all rebates or discounts of any kind agreed upon by the supplier at the date of the invoice directly connected with the operation.
A provision of services at a loss is considered to be any provision of services which is priced lower than the cost price of the service.
The ban to sell at a loss does not apply :
a) to goods which are liable to deteriorate rapidly and whose conservation can no longer be ensured ;
b) to goods whose trade value is largely reduced because of their state of deterioration, a reduction of their possibilities of use or a basic modification of the technology ;
c) to goods specifically offered for sale with a view to react to an event or a short-lived craze if it is obvious that these goods can no longer be sold at normal trading conditions once the event is over ;
d) when for reasons of competitiveness the price of an item or the provision of a service is brought into line with prices generally asked by other traders for an identical good or service ;
e) when the sale of these goods is realised in the context of a bargain sale or a sale in the form of a closing-down sale according to the provisions of articles 2 to 11 or in the context of a public auction of new goods according to the provisions of article 13.