Private law

⚖️ Unfair commercial practices: the Court of Cassation clarifies the scope of the concept of “commercial practice”

Court of cassation, commercial chamber, 24 june 2026, case n° 24-16.770

In a ruling dated 24 June 2026, the Commercial Chamber of the Court of Cassation provides clarification on the scope of the concept of commercial practice within the meaning of Articles L. 121-1 et seq. of the French Consumer Code.

📌 A company organized a competition called “Customer Service Award of the Year.” Two other companies organized a competition awarding the trophy “Best Customer Relations of the Year.” The first company sued the second company, believing that these contests constituted unfair business practices. They sought an injunction against these practices and damages.

The Paris Court of Appeal dismissed the claims, ruling that the design and awarding of the trophies were not directly related to the promotion, sale, or supply of a product to consumers.

Upholding the Court of Appeal’s analysis, the Commercial Chamber first recalls that, under Article L. 121-1, paragraph 2, of the Consumer Code, a commercial practice is deemed unfair if it is contravenes to the requirements of professional diligence and materially distorts or is likely to materially distort the economic behaviour of the average consumer who is reasonably well-informed, reasonably observant, and reasonably circumspect with regard to a good or service.

It further states that, according to the established case law of the Court of Justice of the European Union interpreting Article 2(d) of Directive 2005/29/EC of 11 May 2005, transposed into Articles L. 121-1 et seq. of the Consumer Code, only the practices which, on the one hand, are of a commercial nature, meaning that they originate from professionals, and, on the other hand, are directly connected with the promotion, sale or supply of their products to consumers, constitute “commercial practices”.

The High Court concludes that “since the conduct of a professional, acting in their own name and on their own behalf, is not directly related to the promotion, sale, or supply of their own products to consumers, it cannot be classified as a commercial practice vis-à-vis consumers, within the meaning of Directive 2005/29 and Articles L. 121-1 et seq. of the Consumer Code.”

In the present case, the Court of Appeal correctly determined that the design and awarding of the trophies by the defendant companies were not directly connected with the promotion, sale or supply of their own products or services to consumers.

The Commercial Chamber therefore finds that these practices do not constitute commercial practices as defined in Articles L. 121-1 et seq. of the Consumer Code, and dismisses the appeal.

Finally, the Court rules that a reference to the Court of Justice of the European Union for a preliminary ruling is unnecessary, as the established case law of the Court “is sufficient to resolve the legal issue in question, even in the absence of strict identity between the issues”.