Competition law passive sales

  • What is a passive sales?

    Definition.
    Passive sales are sales made to customers who have not been actively targeted by a seller..

  • What is an active and passive sale?

    Active sales involve some form of active targeting of a particular customer group or territory.
    Passive sales consist of transactions in response to unsolicited requests from individual customers without having initiated the sales by means of active targeting of such customers.Mar 15, 2022.

  • What is an example of a passive sales?

    This includes approaching customers by direct mail, visits or advertisements that specifically target customers in a region or customer group assigned to another distributor..

  • What is an example of a vertical agreement?

    An agreement between a food manufacturer and a supermarket for the supply of baked beans would be an example of a vertical agreement between undertakings operating at different levels of the production or distribution chain..

  • What is the difference between active and passive sales?

    Active sales involve some form of active targeting of a particular customer group or territory.
    Passive sales consist of transactions in response to unsolicited requests from individual customers without having initiated the sales by means of active targeting of such customers..

  • What is the difference between active sales and passive sales?

    Active sales involve some form of active targeting of a particular customer group or territory.
    Passive sales consist of transactions in response to unsolicited requests from individual customers without having initiated the sales by means of active targeting of such customers..

  • What is the VBER summary?

    The VBER concerns vertical agreements, namely agreements that relate to the supply and distribution of goods and services.
    It provides that the prohibition in Article 101(1) of the Treaty does not apply to such agreements if they meet certain conditions..

  • A vertical agreement is a term used in competition law to denote agreements between firms at different levels of a supply chain.
  • The VBER concerns vertical agreements, namely agreements that relate to the supply and distribution of goods and services.
    It provides that the prohibition in Article 101(1) of the Treaty does not apply to such agreements if they meet certain conditions.
  • The Vertical Block Exemption Regulations exempt certain supply and distribution agreements from Article 101(1) of the Treaty.
The restriction on passive sales is considered to be a hard-core restriction under European Union (EU) competition law and many other systems of competition law 

Can a supplier prohibit a distributor's passive sales?

On the other hand, in any type of distribution system (e.g. exclusive or selective distribution) the supplier is generally banned from prohibiting a distributor’s passive sales.
These are sales made in response to unsolicited orders, including:

  • delivery of the products.

    • Can preventing passive sales benefit from the block exemption regime?

    The restriction on passive sales is considered to be a hard-core restriction under European Union (EU) competition law and many other systems of competition law and therefore, preventing passive sales cannot benefit from the protective cloak of the block exemption regime related to distribution systems.

    What are passive sales restrictions?

    Conversely, passive sales restrictions refer to sales made in response to unsolicited requests from individual customers.
    Preventing passive sales is and will remain a hardcore restriction of competition and is thus prohibited.
    The new VBER provides a definition of active and passive sales, clarifying their scope with regard to operating websites.

    What is the ECJ ruling on passive sales?

    There are important decisions of the European Court of Justice (ECJ) and other jurisdictions as well as local competition authorities on passive sales.
    For instance, in 2011, the ECJ, in the Pierre Fabre case, held that absolute prohibition imposed on distributors to sell their goods online restrict competition.


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