In France, the Châtel Act stops supermarkets selling at belowcost prices (which damage supply chain partners' margins) and is aimed at increasing competition in the sector. All discounts and services provided by the distributor to the supplier now require stipulation upfront in an annual agreement (Boutin and Guerrero, 2008). In which ethical breaches have this occurred?

Question

Quizplus · Accepted Answer

The Châtel Act stopping supermarkets from selling at below-cost prices may lead to exploitation of supply chain partners, as they might have to bear the cost of discounts and services provided by the distributor.

In France, the Châtel Act Stops Supermarkets Selling at Belowcost