Commercial awards and unfair commercial practices
Commercial awards: the Cour de cassation reaffirms the requirement of a direct link with the consumer
The judgment handed down by the chambre commerciale of the Cour de cassation on 24 June 2026 raises the question of where the boundaries of the concept of a commercial practice lie.
Awards, labels and professional accolades are often of economic value only because of their ability to enhance a brand or a retailer in the eyes of consumers. They are designed to be showcased in companies’ communications and contribute, sometimes significantly, to their commercial appeal.
Against this background, it was legitimate to ask whether the organiser of an award intended to be used as a promotional selling point could itself be regarded as engaging in a commercial practice within the meaning of Articles L. 121-1 et seq. of the French Consumer Code.
The dispute was between Viséo Customer Insights, organiser of the “Élu Service Client de l’Année” (Customer Service of the Year) competition, and New Interactive Marketing and subsequently Gabaon Conseils, organisers of the “Meilleure Relation Client de l’Année” (Best Customer Relations of the Year) award.
According to Viséo, the organisation of that award amounted to an unfair commercial practice. Its reasoning was based on the idea that the accolade granted to companies was intended to be used in their communications in order to influence consumer behaviour.
The Cour de cassation, however, rejected this analysis.
After recalling the provisions of Directive 2005/29/EC concerning unfair commercial practices and the case law of the Court of Justice of the European Union, it stressed that a commercial practice presupposes a direct connection with the promotion, sale or supply of a product or service to consumers.
The companies being sued, however, had no commercial relationship with consumers. Their business consisted solely of organising a competition and presenting an award to corporate clients. The Court thus noted that “the design and presentation of the awards” did not directly concern the promotion, sale or supply of a product to consumers.
It concluded that this activity did not constitute a commercial practice within the meaning of Directive 2005/29/EC concerning unfair commercial practices and of Articles L. 121-1 et seq. of the French Consumer Code.
The significance of the judgment lies less in the outcome than in the criterion it highlights.
The Court declines to reason on the basis of the potential economic effects of the award on consumer behaviour. It favours a stricter approach, focused on the author of the practice and on the existence of a direct link between that author and the consumer.
In other words, the fact that a scheme is designed to be exploited as part of a marketing strategy, and that it may help to influence the public’s choices, is not in itself sufficient to bring it within the scope of unfair commercial practices.
The Court thus confirms that the organiser of such a scheme cannot be pursued on the basis of unfair commercial practices where it acts in its own name and has no direct relationship with consumers.
The ruling follows on from European case law on unfair commercial practices. It nonetheless draws a clear distinction between the organiser of an award and the company that uses it in its communications, even though the economic value of such accolades lies precisely in their ability to strengthen consumer confidence and steer consumer choices. The line drawn by the Court is therefore less about influence exerted on the market than about the relationship maintained with the consumer.
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