French group Intermarch茅 fined 鈧�375k for Nutella offer
Supermarket group Intermarch茅 has been fined 鈧�375,000 for its 70% super-promotion of chocolate spread Nutella in January 2018, after the group was found to have broken discount rules.
The fine French fraud agency La Direction G茅n茅rale de la Concurrence, de la Consommation et de la R茅pression des Fraudes (DGCCRG) after its investigation into the discount.
In January 2018, Intermarch茅 - which is part of the Les Mousquetaires retail group - ran a 70% off discount sale on 750g pots of Nutella, leading to rioting scenes in some supermarkets as people fought to get their hands on the famous spread for bargain prices.
At the time, Nutella manufacturer Ferrero - fearing for its reputation - also accused Intermarch茅 of selling the product at a loss. It said that it had only authorised a maximum price cut of 25% on the 950g pots, and not the 70% used in practice.
Overall, the DGCCRG concluded that Intermarch茅 had indeed contravened rules on discounts, which limit the amount that supermarkets can drop prices to avoid situations in which manufacturers, farmers and producers actually lose money on their goods.
As well as Nutella, Intermarch茅 was also found guilty of having unlawful discounts on Pampers nappies, Carte Noire coffee, and Perrier sparkling water.
The Loi Alimentation laws state that promotions for food and drink items must be limited to 34% on value and 25% on volume, with a seuil de vente 脿 perte (threshold of sale at a loss) of at least 10%.
Ultimately, supermarkets are now not allowed to discount products below the point at which producers would no longer be paid.
Similarly, 鈥渂uy one, get one free鈥� deals have also been banned.
