Assessment of the sanctions taken by the DGCCRF in 2020 in terms of inter-professional payment terms

Each year, the DGCCRF checks compliance with the legal payment deadlines. In 2020, it controlled more than 900 establishments in this capacity, including 35 public enterprises and 278 enterprises having benefited from a loan guaranteed by the State.

While all companies are required to respect the legal payment deadlines, it is particularly important to verify that this is indeed the case for those receiving a loan guaranteed by the State (PGE).

This support system aims in particular to help companies pay their suppliers within the legal deadlines in order to avoid transmission of payment incidents to the entire economy.

During these checks, it was found that nearly 30% of companies paid a significant portion of their invoices beyond the legal deadlines.⁽²⁾. At the end of the controls, when breaches were revealed, the consequences consisted for 40% of warnings, for 20% of injunctions - so-called educational and corrective consequences - and for 40% of fine procedures administrative. 182 administrative fine procedures, representing a total of more than € 29,9 million were thus launched in 2020, including 91 sanction decisions notified to the companies inspected (for a total amount of fines of nearly € 9,4 million euros), and 91 ongoing sanction procedures (for an amount, not yet final, of more than 20,5 million euros).

Since the entry into force of the administrative sanctions in 2014, 1.375 administrative fines have thus been notified by the DGCCRF, for a total of almost 91,3 million euros.

In 2020, several fines exceeding the former ceiling of 375.000 euros (raised to 2 million euros by the “Transparency” law of 9 December 2016) were imposed following breaches of the legislation relating to Payment period :

• 2.000.000 € against the company CORA, specializing in mass distribution
• € 1.230.000 against the company XPO Distribution France, specialized in road transport
• € 990.000 against the company La Banque Postale, specialized in banking and financial services
• € 750.000 against the company AGEFOS PME Ile-de-France, specialized in the management of professional training funds for companies
• € 530.000 against the company Lubrizol France, which specializes in the manufacture of chemicals
• € 390.000 against the company TEREOS France, specializing in the transport and processing of beet into finished products
• € 383.000 against the company Nocibé France distribution, specializing in the retail trade of perfume and beauty products

In 2021, the DGCCRF will continue to take resolute action to combat late payments, particularly targeting its controls on large companies and mid-sized companies that have benefited from a loan guaranteed by the State.

The DGCCRF will also be able to show pragmatism in its controls and the follow-up it will give to them, taking into account in each case, both the seriousness of the breaches identified and the financial situation of the company involved. author.

In application of the regulations, these penalties for late payment are the subject of a publication on the website of the DGCCRF: https://www.economie.gouv.fr/dgccrf/sanctions-delaispaiement.

To strengthen the preventive and dissuasive dimension of its action, the DGCCRF communicates more specifically on the most important sanctions pronounced. This communication illustrates the Government's determination to fight against late payments of all companies, including public companies.

(1) See annual reports of the Observatory of payment deadlines.

(2) A practical sheet relating to the regulation of payment terms can be consulted at the following address: https://www.economie.gouv.fr/files/files/directions_services/dgccrf/documentation/fiches_pratiques/fiches/delais-de-paiement.pdf