The aim of maintaining a prestigious image is not a legitimate aim for banning online sales

Print this page 13-10-2011
IPPT20111013, CJEU, Pierre Fabre Dermo Cosmetique

A contractual clause in the context of a selective distribution system that bans online sale of cosmetics and personal care products amounts to a restriction of competition within the meaning of provision 101(1) TFEU when it is apparent that, having regard to the properties of the products at issue, that clause is not objectively justified: it is for the referring court to examine whether the clause can be justified by a legitimate aim, the need to provide individual advice to the customers is not accepted as legitimate aim in the context of non-prescription medicines, the aim of maintaining a prestigious image is also not a legitimate aim for restricting competition. Article 4(c) of Regulation No 2790/1999 must be interpreted as meaning that the block exemption provided for in Article 2 of that regulation does not apply to the clause at cause: it cannot be regarded as a clause prohibiting members of the selective distribution system concerned from operating out of an unauthorised place of establishment within that article.  

 

IPPT20111013, CJEU, Pierre Fabre Dermo Cosmetique