French Consumer Code
In forceThe following are prohibited:
1° The sale practised by the so-called "snowball" process or any other similar processes consisting in particular of offering goods to the public with the expectation that they will obtain these goods free of charge or against remittance of a sum less than their real value and making sales conditional on the placing of vouchers or tickets with third parties or on the collection of memberships or registrations ;
2° Offering to collect memberships or to register on a list by requiring the payment of any consideration whatsoever and giving the expectation of financial gain from an increase in the number of people recruited or registered rather than from the sale, supply or consumption of goods or services.
In the case of sales networks formed by chain recruitment of members or affiliates, it is prohibited to obtain from a member or affiliate of the network the payment of a sum corresponding to an entry fee or the acquisition of equipment or services for educational, training, demonstration or sales purposes or any other similar equipment or service, when this payment leads to a payment or the attribution of an advantage benefiting one or more members or affiliates of the network.
In addition, it is forbidden, in these same networks, to obtain from a member or affiliate the acquisition of a stock of goods intended for resale, without a guarantee that the stock will be taken back under the conditions of purchase, after deduction, where appropriate, of a sum not exceeding 10% of the corresponding price. This take-back guarantee may, however, be limited to a period of one year after the purchase.
Article L121-15
French Consumer CodeIn force
Updated 8 Nov 2023
