General conditions of sale (conditions générales de vente, or CGV) allow companies to provide customers with key information regarding the sale of a product or service. In France, there are several formalities to follow when drafting and publishing CGV, many of which are mandatory. This article provides important information to help French companies comply with current regulations when publishing their CGV.

What’s in this article?

• What are general conditions of sale (CGV)?
  
• What is the role of CGV?
  
• Who needs CGV?
  
• What information should CGV contain?
  
• Risks of non-compliance with CGV
  

What are general conditions of sale (CGV)?

CGV are contained in a document, often in digital format, that provides details about the sale of a product or the delivery of a service. They form the basis of commercial negotiations between a company and its customers and allow specific sales terms to be defined for each transaction.

How should CGV be presented?

CGV must be available on a durable medium that allows the customer to retain the information provided by the company. A printed document, an email attachment, or a secure personal online account are all acceptable formats.

CGV are typically included in pre-contractual documents (e.g., advertisements) or contractual documents (e.g., quotes or purchase orders).

Regardless of the format, the CGV must be provided to the customer before the contract is finalised. This means the CGV must be easily accessible before the buyer confirms their shopping cart or completes payment. In France, for example, the CGV should not be included on an invoice.

What’s the difference between CGV and CGU?

It’s important to prevent confusion between multiple sets of conditions published on a commercial website. The CGV outline the rules of a sale, while the general conditions of use (conditions générales d’utilisation, or CGU) specify the terms for accessing and using an online service. The CGU define the user’s rights and obligations toward the service provider.

The CGU apply to all individuals who browse the site, even if they do not intend to make a purchase. They outline the terms of use of the site, while the CGV govern the commercial relationship between the seller and buyer.

What is the role of CGV?

CGV are important for any transaction in France. They are required for the following purposes:

• Transparency and clarity: CGV are designed to create a clear and precise contractual framework for commercial relations between the seller and buyer. This structure helps anticipate and prevent disputes.

• Customer protection: French regulations pay close attention to the protection of customer rights. If an issue arises after a purchase, the CGV provide customers with protection.

• Legal certainty: By clearly outlining the terms and conditions of sale, the CGV create a stable and secure legal framework for all commercial transactions in France.

• Evidence: CGV serve as important evidence in the event of a dispute, helping to objectively establish the rights and obligations of each party. They effectively protect companies that carefully draft their CGV.

• Customer loyalty: Providing CGV in French allows customers to quickly and independently find answers to their questions, fostering a positive perception of the company.

With Stripe Checkout, businesses can simplify customer payments by offering multiple payment methods and streamlining information entry. Integrate CGV advice and acceptance into every transaction to ensure legal validity.

Who needs CGV?

Business customers: In a B2B transaction, if the customer is a professional, the business is only required to provide the CGV upon the customer’s request. A business can provide it automatically but is not required to do so.

Individual customers: If the customer is a private individual, the CGV must be provided automatically before the contract is finalised. These requirements apply to all sales, whether in-store or online.

What information should CGV contain?

To comply with the law, the CGV must contain certain information, but companies can include additional rules to further protect their interests.

The law requires companies to be transparent with customers. Articles L111-1 and R111-1 of the French Consumer Code require CGV to clearly outline the main aspects of the sale, including payment terms, delivery times, and legal guarantees (e.g., warranties and protection against hidden defects).

These include:

• Basic features of the goods or services

• Price

• Date or time of delivery of the goods or services

• Information on the identity of the seller

• The company’s contact details

This information varies slightly depending on whether the sale involves goods or services. In all cases, the company must provide this and other relevant information before the conclusion of each contract. For each particular scenario, please consult the French public services website.

Sale of goods

To sell a product, you must provide the information listed above, including any necessary details or clarifications. The CGV must clearly state when ownership is transferred and how the product will be delivered to the customer.

Provision of services

For a service contract, the company must provide pre-contractual information detailing how the service will be provided. In accordance with Article R111-2 of the French Consumer Code, the general conditions of sale must specify the company’s legal status and, if applicable, its registration number in the Trade and Companies Register (RCS) or the Trades Directory (RM).

Distance selling

In accordance with Articles L221-5 and R221-2 of the French Consumer Code, the company must provide the customer with important information on the right of withdrawal before the conclusion of the contract. This is the case for distance sales, as opposed to sales carried out in a physical establishment.

To ensure the traceability of the contractual exchanges, the company must specify the online communication methods used to keep a permanent copy of all written documents, including their date and time of issue.

Risks of non-compliance with CGV

Failure to provide CGV upon a customer’s request – or omitting mandatory information in them – can result in financial penalties for the professional. A sole proprietorship can be fined up to €15,000, while a company can be fined up to €75,000.

Supervisory authorities are empowered to conduct investigations and impose administrative penalties if the CGV are found to be in breach. Additionally, if the CGV are unclear, customers can challenge them and seek compensation. As a result, a company risks losing customers and facing legal action.