French Government Announces Lawsuit Against Carrefour
PARIS, FRANCE - There may be trouble brewing for one of Europe’s largest retailers. The French government has announced this week that it will take retail mega-company Carrefour to court over allegations of misconduct with suppliers.
Following an extensive investigation by French authorities, the country has found that Carrefour might have illegally sought massive discounts from its suppliers. According to Reuters, France’s Economy Ministry said it would seek both a fine and a court order, in order to further prevent what it described as "abusive commercial practices.”
Reuters further reported that the investigation had found that, in particular, the retailer had pressured suppliers to give big discounts with "nothing in return outside of annual commercial negotiations," which French officials said was not only illegal, but hurt companies and farms.
This may mean future turbulence for other European retailers as well, the French government warned. In a statement, the body said that it may file court orders against other retailers in the coming weeks "to put an end to and punish the practices of several other retailers."
As of 5:35 PM GMT+1 on November 10, Carrefour’s shares were down 4.64 percent, the company’s lowest performance since July of this year.
How will these allegations pan out for the retailer that holds over 12,200 locations in 35 countries? AndNowUKnow is keeping our ear to the wire for the latest.