08.01.2025 | French competition authority
The Autorité de la concurrence has launched inquiries into the competitive dynamics of consumer product and service rating systems, especially those emphasizing sustainability. This initiative follows a public consultation with stakeholders, including rating system publishers, businesses, and consumer advocacy groups, reflecting the growing popularity of these systems across various sectors.
The guidance underscores that rating systems not only cater to consumer demand for clear information but also stimulate innovation among companies and enhance market competition. By presenting information in an accessible format, these systems can significantly influence consumer purchasing decisions and motivate businesses to create more sustainable products.
Competition law advisors are urged to ensure that rating systems comply with competition rules, as these systems can impact market dynamics, particularly regarding product quality and innovation. The Autorité emphasizes the responsibility of rating system publishers to maintain accuracy and reliability in their ratings, which are crucial for consumer decision-making. The methods used for calculating ratings and the data employed must be robust, with objective criteria to promote fair competition.
Concerns have been raised about collaboratively developed rating systems by competitors, which may lead to uniform ratings without merit-based justification, potentially violating competition laws. The Autorité warns that such collaborations could risk collusion and stresses the importance of diverse representation in these discussions.
Advisors should guide businesses in maintaining transparency about the governance and operations of rating systems, ensuring that all stakeholders are informed about the criteria and data used. Caution is advised regarding joint efforts in developing these systems to avoid anti-competitive behavior.
The article also highlights potential defamation issues when rating systems assign low scores to products containing substances deemed harmful, even if approved by health authorities. Such practices could be analyzed as abuse of a dominant position under certain conditions.
Lobbying related to public rating systems is deemed legitimate; however, it may lead to competition law issues if misleading information is used to influence public authorities. Advisors should be aware of these dynamics, as they can affect business operations and interactions with rating systems and regulatory bodies.
Public authority-issued rating systems must focus on sustainability objectives, avoiding unrelated factors. Selective disclosure of ratings can undermine consumer choice and competition, potentially being classified as anti-competitive if it involves coordination among companies to hide poorly rated products.
Additionally, if a dominant retailer imposes its own rating system on suppliers, it may raise legal concerns, particularly if it treats its own brands preferentially or discriminates against suppliers, which could be classified as abuse of a dominant position.
While promoting virtuous practices through rating systems is acceptable, any coordination that limits competition or unfairly disadvantages suppliers could lead to legal challenges. Advisors should consider the conditions under which practices may be justified for consumer protection or sustainability goals.
Overall, the article emphasizes the importance of accurate sustainability claims to avoid misleading consumers, which could result in legal issues. Advisors should guide businesses on compliance with competition laws while effectively promoting their sustainability ratings.
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