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12/06/2014 PROFILE > Autorité judiciaire et administrative , Chef d'entreprise , Direction , Acheteur , Commissaire aux comptes

Customer and supplier payment deadline extension: attestation by the auditor (Hamon Law)

Published on the Official Journal of the French Republic (JORF) on 18 March 2014, Law no. 2014-344 of 17 March 2014 pertaining to consumption (known as the "Hamon Law") has the purpose of governing relations between professionals and consumers and provides major modifications in terms of distribution law, notably concerning the role of auditor in respect of payment terms.

Companies with an auditor are under the obligation to indicate in their management report the payment terms for their suppliers or clients, since ratification of law n°2008-776 of 4 August 2008 (known as the "Economic Modernisation Law"). The Hamon Law consolidates this obligation to issue an attestation pertaining to supplier and client payment terms. It should be issued to the ministry for the economy if audited. Moreover, for large companies recording over 1.5 billion euros in annual turnover, the attestation should be automatically issued by the auditor if it notices any repeated defaults in terms of payment terms.

It is necessary for professionals to comply, as soon as possible, with these new provisions pertaining to payment terms and which are immediately applicable.

The Hamon law also notably implements a unique annual convention, an obligation of response and new powers and means of action for the Directorate General for Competition, Consumption and Repression of Fraud (DGCCRF) and the Competition Authority (ADLC).

Consult the documents resuming the new implementations of the Hamon law on the website of the Ministry for Economy and Finance.