Leclerc contracts were imbalanced, court ruled

Leclerc contracts were imbalanced, court ruled

French retail giant E. Leclerc has been fined EUR500,000 (US$675,000) for inserting unfair clauses into contracts with suppliers.

France's Economic Ministry announced the fine, issued by the Paris Court of Appeal in December, this week.

The ministry said the clauses showed a "significant imbalance in the rights and obligations of both parties, to the detriment of suppliers". 

The clauses included ordering suppliers to pay Leclerc for services provided by the retailer by 30 days from the date of the invoice - while allowing the grocer longer to pay for goods from the manufacturer.

Leclerc was ordered to stop including the clauses in its agreements with suppliers. The retailer had not responded to a request for comment at the time of writing.