1. WHAT IS THE LEGAL FRAMEWORK FOR BOOK PRICING?
Two laws govern book pricing. Law no. 81-766 of August 10, 1981 on book prices, known as the “Lang Law”, applies to physical books, while Law no. 2011-590 of May 26, 2011 on digital book prices applies to digital books.
These two laws establish the principle of a single price, which means that the publisher or importer of a book on French territory must set a single selling price, valid for the entire marketing of the book in France.
This price applies uniformly to all dealers and distributors.
Excluded from this scheme are audio books and used books, with the exception of books bought for resale.
2. HOW IS A BOOK PRICED?
- Is pricing free?
Yes, the publisher is free to set the selling price of a book.
But. Freedom to set the price does not rule out the obligation to set a single price. The Pay What You Want (system cannot be applied to books, because the law requires a single price.
- Is it possible to differentiate prices according to media?
Yes, a price difference between digital and paper books is allowed, provided that the publisher justifies the difference.
- What rate of VAT is applied in setting the price?
A reduced VAT rate of 5.5% applies to books, whether in physical, digital or audio format.
- Are shipping costs compulsory?
Yes, the French law n°2021-1901 of December 30, 2021, known as the Darcos Law, has set a minimum shipping rate.
The cost of postage is €3 (incl. VAT) for all orders of one or more new books costing less than €35 (incl. VAT).
Beyond this threshold, the minimum amount can be reduced, but cannot be totally waived.
3. CAN THE PRICE BE CHANGED?
Only the publisher can change the price of a book at any time.
However, this modification must be applied to all resellers with a notice period.
- Is it possible to set an “introductory” price that differs from the final price?
Yes, a temporary, lower selling price can be set for the specified “launch” period.
- Is it possible to set an initial crowdfunding/pre-order/subscription price that is lower than the projected sales price once the book is published?
Yes, a reduced price may be offered to those who commit to buying a book before publication, but this price ceases as soon as the book is available for sale.
4. CAN THE PRICE OF A BOOK VARY?
- Is it possible to run promotions on the price of a book?
Yes, but… Discounts are permitted, but limited to a maximum of 5% of the retail price of the book. Beyond this limit, discounts become illegal.
As a result, the price charged by retailers can be between 95% and 100% of the price set by the publisher or importer.
- Is it possible to sell books that have been in storage for years?
Yes, but… Except for publishers in their direct sales activity, the balance of copies of books when these have been published for more than 2 years and have been in stock with the retailer for more than 6 months.
5. PREMIUM / BUNDLE SALES
Bonus or bundle sales(e.g. offering a free product with the purchase of a book, tombolas, vouchers) are legal:
- Only if carried out by the publisher or importer, and must be offered to all retailers. All premiums initiated by one or more sales outlets are therefore prohibited.
- Provided it does not constitute an unfair commercial practice within the meaning of Article L121-1 of the French Consumer Code.
- Can the book be the bonus?
Yes, offering a physical or digital book free of charge following the purchase of a book constitutes a premium sale.
However, this offer must not contravene the provisions of law no. 81-766, in particular the maximum 5% discount. The premium must not reduce the book’s original price.
For example. For the purchase of a dictionary at 50 euros and a free book worth 25 euros. This reduces the price of the book by 100% and the price of the dictionary by 25%. This situation constitutes an illegal premium sale. ( Cass. com., Apr.1, 1997, no. 94-22.129 )
- Is it possible to offer a voucher in exchange for the purchase of books?
The granting of vouchers after the purchase of a book can be characterized as a premium sale. It must not be perceived as an indirect reduction in the price of the book purchased, or as a misappropriation of customers.
Examples.
A supermarket’s offer of vouchers, the value of which was calculated according to the amount of schoolbooks purchased, constitutes an unlawful sale of books at a premium, insofar as the premium (the granting of vouchers) indirectly enabled a price reduction on the books purchased, even though the voucher could not be used to purchase books (Cour de cassation, civil, commercial division, November 20, 2007, 06-13.797).
In addition, giving a customer a discount voucher valid on the subsequent purchase of a competitor’s product has beenconsidered unlawful and constitutes misappropriation of customers (Cass. com., Nov. 18, 1997, no. 95-17.445).
6. WHAT TO DO IN THE EVENT OF A VIOLATION
- Can I take action against my competitor for violating the aforementioned rules?
Yes, in the event of an infringement of the provisions of this law, actions for injunction or compensation may be brought, in particular by any competitor, approved consumer protection association or trade union for book publishing or distribution, as well as by the author or any organization for the defense of authors.
However, the The Darcos law of 2021 requires prior referral to the Book Ombudsman for conciliation.
- What are the penalties?
- An administrative fine: a third-class fine is incurred for non-compliance with the legal provisions set out in the 1981 and 2011 book price laws. (Decree n°85-556 of May 29, 1985, decree n°2012-146 of January 30, 2012).
- In the event of unfair competition, damages to be paid to any competitor injured by unfair practices.
Article written by Sandrine Vara, partner and Cloé Dessemon, associate