The Lyon Court of Appeal has fined LOCAM 1.2 million euros for misleading commercial practices. Find out more about the legal consequences of this decision and possible remedies for professionals.
🟩 Introduction
On February 24, 2024, the Lyon Court of Appeal marked a turning point in consumer law as applied to professionals.
In a long-awaited decision, it sentenced LOCAM to a fine of €1,200,000, thereby incurring criminal liability for misleading commercial practices.
This decision follows nearly one hundred complaints lodged by professionals, often very small businesses or self-employed people, who had taken out off-premises rental contracts.
🟨 The three offenses of which LOCAM is accused
Misleading commercial practices (L.121-2 Consumer Code)
LOCAM is accused of providing ambiguous contractual documents and systematically refusing to exercise the right of withdrawal, citing erroneous information.
Advance payment prohibited (L.221-10 Code de la consommation)
The company allegedly collected sums before the expiration of the legal withdrawal period, which is prohibited by law.
Contract not in compliance with legal obligations (L.221-5 Code de la consommation)
LOCAM failed to comply with the formal rules imposed, in particular the obligation to provide a contract containing all pre-contractual information.
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