Rules by country / Europe / Bans on selling food below cost in Europe
Selling below cost in Europe: how low a food promotion can go
In Germany, Spain and Portugal, a retailer may not sell food for less than it paid, and in France not for less than that cost plus 10%. Belgium's ban fell in May 2026. So the depth of every deal depends on the retailer's net cost. We plan promotions that pay and stay above the floor.
A guide, not legal advice. Compare prices before VAT. Germany's ban covers retailers with superior market power; France's 10% applies to food; each country has exceptions.
A promotion plan for the below-cost rules
What each promotion really earned, and a calendar of deals that pay and stay above each country's floor, product by product and retailer by retailer.
- What every past promotion really earned, after the dip that follows it
- Which deals still pay within the rules, product by product and retailer by retailer
- A promotion calendar for the year, with depth, timing and price steps
- A plan by retailer, and an Excel model to test other deals
How your results look
| Promotion | Against the floor | Our advice |
|---|---|---|
| Coffee, 500g, deal at €3.49 | Below cost in four countries | Reduce the depth |
| Cola, 1.5 litres, deal at €0.99 | Above every floor | Keep: it pays |
| Biscuits, 2 for €3 | Below the French floor only | Make it 2 for €3.50 in France |
Fictional products. Every real result comes with the expected sales and profit, and a likely range.
Your options
Every option has a fixed price, agreed before we start.
Promotion plan
- The best promotions for each product
- Price plan for each retailer
- Scenario model and a walk-through
Pricing and promotion review
- Everything in the promotion plan
- Prices and promotions for the whole range
- How your products take sales from each other
Portfolio review
- Everything in the pricing review
- More retailers and data sources
- A plan for each channel
After the project: a refresh before each pricing round, from £2,000 (about €2,400). Prices are fixed in pounds sterling; amounts in euros are a guide at October 2026 exchange rates. We're based in the UK and work remotely, in English, under NDA.
How it works
From the first call to your plan in about three weeks.
A free 15-minute call
Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.
Your data
Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.
Your plan
A promotion calendar that pays and stays above every floor, walked through with your team.
Bans on selling food below cost in Europe: the detail
Open only what you need.
- Germany
- Section 20(3) of the Competition Act: a retailer with superior market power over small and medium rivals may not offer food below its cost price (the agreed purchase price less discounts already certain), unless it stops the food spoiling or becoming unsellable. Fines can exceed €1 million
- France
- Resale at a loss is banned, and for food the threshold is the net cost plus 10% (SRP+10), extended to 15 April 2028
- Spain
- Since Law 16/2021, food retailers may not sell to consumers below the price they paid; each business in the food chain must also pay the one before it at least its cost of production
- Portugal
- Decree-Law 166/2013: selling below the effective purchase price (the invoice price less discounts tied to that purchase) is banned for sales to consumers and to businesses, with limited exceptions
- Belgium
- The Council of State ruled on 20 May 2026 that Belgium's sales rules breach EU law, and lawyers say selling at a loss is no longer banned
Reduce the depth
A shallower deal that stays legal can still lift volume.
Space them out
Fewer, better-timed deals often earn more than constant discounting.
Cut the regular price
A lower everyday price can beat a deal that only works on paper.
Is selling below cost illegal?
For food, in Germany, France, Spain and Portugal, with exceptions; in France the floor for food is cost plus 10%. Belgium's ban fell in May 2026.
What is the ban on selling below cost price in Germany?
Retailers with superior market power may not offer food below their cost price, unless it stops the food spoiling (Section 20(3) of the Competition Act).
Can supermarkets sell food at a loss in Spain?
No. Since Law 16/2021, food retailers may not sell to consumers below the price they paid.
Is selling at a loss still banned in Belgium?
The Council of State ruled on 20 May 2026 that the sales rules breach EU law, and lawyers say selling at a loss is no longer banned.
How much does a promotion plan cost?
A review of up to 10 products has a fixed price from £7,500 (about €9,000) and takes about three weeks. For 11 to 50 products, a full pricing review costs around £17,500 (about €21,000). It starts with a free 15-minute call.
Do you work with brands across Europe?
Yes. We work remotely and in English, under NDA, and can plan promotions for every market in one project. Prices are fixed in pounds sterling before we start, and the first step is a free 15-minute call.
- German Bundestag research service, selling food below cost and other unfair trading practices (November 2023, in German)
- Hayot Expertise, SRP+ EGalim 2026 explained (in French)
- ICAB, Law 16/2021 amending the Food Chain Law (in Spanish)
- APCMC, changes to the rules on restrictive trading practices (in Portuguese)
- CMS, the end of stringent rules on sales in Belgium (28 May 2026)
Checked on 25 October 2026. Rules and rates change, so check the official source before making decisions. This page is not tax advice.