Carrefour offices in Paris have undergone a search conducted by French authorities as part of an investigation into its commercial practices, Reuters reports.
In a statement, the company said that it "is of utmost importance for Carrefour to apply current regulations and if mistakes have been made the company will take the necessary measures."
The investigation takes place in the wake of joint statement released by France’s agriculture minister, Stéphane Le Foll, and economy minister, Emmanuel Macron.
"Given the French livestock farmers' difficulties, the [aforementioned] ministers have communicated to the retail and food-processing industries that it will not be acceptable if negotiations in 2016 result in even lower prices [for farmers], in particular with regard to dairy products.”
It goes on to say that they will "tighten legal boundaries if trade negotiations do not achieve outlined targets."
Their proposals will be "sent this week by the French government to the European Commission."
They also say that the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes will supervise negotiation between food retailers and their suppliers. This happens under the instruction of minister Macron.
In theory, retailers judged to have employed unsound pricing structures could be fined up to five per cent of their revenue.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.
