FRANCE: The use of Internet in a distribution contract.
A distributor of aeronautical and electronic equipment, whose distribution contract had been terminated, accused its former supplier of using the Internet to inform customers about the identity of the future distributor of its products before their contractual relationship was over.
The Court of Appeal dismissed this claim on the ground that
"there is no rule or standard commercial practice which prohibits suppliers from informing their distributor's customers or selling agents, shortly before the expiration date of the distribution agreement, that after said date they will have to procure their supplies from another distributor; this information, which is necessary to avoid interruptions of sales, does not prohibit customers from continuing to purchase supplies from the former distributor for any other products it may distribute."
However, the information must not be formulated in such a way as to harm the first distributor (e.g., by referring to its incompetence); otherwise, the supplier may be held civilly liable for defamation.
Didier Ferrier, IDI Country Expert for France.
The text of the judgement, together with other interesting case-law on agency and distribution contracts, can be found in the French page of the Reports Section of the website, while the relevant legislation concerning agency and distribution agreements in France can be found in the Legislation Section of the Website.
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