Wednesday, December 11, 2013

Electronic cigarette, unfair competition? The argument fails


The decision of the Commercial Court of Toulouse indicating that the electronic cigarette is unfair competition vis-à -vis a tobacconist seems very surprising. From the time a product does not have a legal monopoly of distribution , it has the right to be freely marketed . This is the case so far , the electronic cigarette.

On the legislative front , the electronic cigarette is free distribution

The control and sale of certain products are confined to a particular type of business , this is called a legal monopoly distribution . This is the case of pharmacy drugs and cigarettes from tobacconists , for example.

In early October , it was questioned pharmacy sales of electronic cigarette, by classifying as medicinal . MEPs debated and voted no . The principle of the free distribution of this product ( and related accessories) has been reaffirmed . It has not been decided either by legislation , it should be sold exclusively in the tobacco shops.

This results in a reaction tobacconists , who feel a victim of competition, is understandable, but then to declare that it is an unfair practice leaves me skeptical. I think the court of appeal will further analyze the judgment of the Tribunal de Commerce de Toulouse and I would not be surprised that slice in the opposite direction.

If the decision is confirmed , e- shops put the key under the door

If the judgment is upheld on appeal , however , even by the duplicated sequence ( the Confederation of tobacconists has already warned that in case of a favorable decision , it would encourage 27,000 tobacconists in France to follow his example ) , this will cause serious problems.

On the one hand , the question of harmony with European Community law will arise, because the electronic cigarette is freely available in all EU countries . But the free movement of goods is a basic principle.

Secondly, and this is certainly the most important, the distribution of the electronic cigarette in place (all " e- shops " that have flourished lately) would be forced to cease all activity . So put the key under the door. The sale of their products would be repatriated in newsagents .

The messages are not illegal under the pretext that competitor Post

The issue is highly economical. Sales of "conventional" cigarettes have declined substantially since the introduction of electronic cigarette (2.50 % in value and 8.6% in volume in the first quarter 2013 compared to the same period of 2012).

But we must also focus on consumers and their interests. Is it smart to sell the same place packs of cigarettes and electronic cigarettes, when the latter are of interest to no longer use the first or interest for any short health?
I do not think the argument of unfair competition is a good way to solve the problem . It shall be possible otherwise.

When there are societal and / or consumption changes , we must learn to adapt . Couriers La Poste suffer from competition mails, it is not so far as sending them via electronic boxes is considered illegal .

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