Selective distribution

The supplier selects its distributors on the basis of pre-determined  and selective criteria, which take into account in particular:

• the characteristics of the point of sale (environment, quality of the location, surface, characteristics);
• the distributor’s skills (experience, customer reception and advice capacity, equity);
• the existence of a number of distributors deemed optimal by the supplier in its reference market, either to saturate it or to create an artificial shortage of supply.

The legal validity of selective distribution systems has been criticized and, if it has been recognized, is strictly regulated: this system is indeed likely to constitute a form of cartel prohibited by French and European competition law. The drafting of selective distribution contracts is therefore strategic and involves the intervention of qualified counsel.