Your business is the victim of fraud
Fraudulent payment orders, supplier identity theft, misappropriation of funds by an agent, systematic overbilling by a service provider. Fraud between businesses comes in many guises, but the common thread is financial harm and the need to act quickly to preserve evidence.
French law offers several avenues depending on the nature of the conduct: a criminal complaint for fraud (escroquerie) or breach of trust (abus de confiance), a civil action for damages, or an unfair competition claim where the fraud originates from a competitor. The Cour de cassation recently extended the scope of breach of trust to cover information disclosed in the context of a pre-acquisition audit (Cass. crim., 25 June 2025, No. 21-83.384) – intangible assets now receive the same protection as funds.
The choice of legal characterisation and procedural route directly determines the effectiveness of the remedy. An error in the initial characterisation wastes valuable time.
Article 313-1 of the French Criminal Code – Fraud (escroquerie)
‘Fraud is the act of deceiving a natural or legal person, whether by the use of a false name or a false capacity, by the abuse of a genuine capacity, or by the use of fraudulent stratagems, and thereby inducing them, to their detriment or to the detriment of a third party, to hand over funds, valuables or any property whatsoever.’ Penalty: 5 years’ imprisonment and a fine of EUR 375,000.
How we assist you
- Legal analysis of the facts and characterisation of the offence
- Building the evidence file and filing a criminal complaint
- Joining the criminal proceedings as a civil party (constitution de partie civile) before the criminal court
- Damages action before the Commercial Court
- Protective measures to safeguard assets (freezing orders, escrow)
- Recovery of misappropriated sums
You are accused of misleading commercial practices
An allegation of product misrepresentation, a complaint for misleading advertising, a competitor’s claim for unfair commercial practices, prosecution following a regulatory referral. Being accused of commercial fraud can have severe consequences for a director or a company: criminal sanctions, professional disqualification, lasting reputational damage.
A point often overlooked by directors: criminal liability can arise even without direct involvement in the acts. A failure of oversight or supervision may suffice. The company itself is prosecuted, and its legal representative along with it.
The boundaries between the various offences are narrow. Fraud (escroquerie), breach of trust (abus de confiance), product misrepresentation (tromperie), misleading commercial practices: each offence has distinct constituent elements. A rigorous analysis of the characterisation is the first line of defence.
| Offence | Statutory basis | Constituent elements | Maximum penalty |
|---|---|---|---|
| Fraud (escroquerie) | Art. 313-1 Criminal Code | Fraudulent stratagems inducing the handover of funds | 5 years + EUR 375,000 |
| Breach of trust (abus de confiance) | Art. 314-1 Criminal Code | Misappropriation of assets entrusted on a precarious basis | 3 years + EUR 375,000 (7 years for directors) |
| Product misrepresentation (tromperie) | Art. L.441-1 Consumer Code | Deception as to the nature, quality or origin of a product | 2 years + EUR 300,000 |
| Misleading commercial practices | Art. L.121-2 Consumer Code | False claims altering economic behaviour | 2 years + EUR 300,000 or 10% of turnover |
Our lines of defence
- Challenging the legal characterisation and seeking reclassification as a lesser offence
- Demonstrating the absence of fraudulent intent
- Challenging the materiality of the facts or the admissibility of the evidence
- Procedural irregularities and defects in the investigation
- Negotiating an alternative criminal resolution (penal composition, guilty plea procedure)
- Compliance audit to prevent the risk of re-offending
DGCCRF investigations (consumer protection authority)
The DGCCRF (the French consumer protection and fraud prevention authority) has broad investigative powers: the right to enter premises, seize documents, take samples and impound products. A single report on the SignalConso platform can trigger an investigation. The findings may be referred to the public prosecutor or may result in direct administrative sanctions.
Failing to instruct a lawyer during the investigation phase is a common mistake. The official reports drawn up by the investigators will form the basis of any subsequent prosecution. Every statement made, every document produced, may be used in evidence. Controlling this phase is essential to protect the company’s rights.
Article L.121-1 of the French Consumer Code
‘Unfair commercial practices are prohibited. A commercial practice is unfair where it is contrary to the requirements of professional diligence and materially distorts, or is likely to materially distort, the economic behaviour of the consumer.’
Our intervention from the outset
- Immediate analysis of the investigation notice and its scope
- Accompanying you during on-site visits and managing exchanges with the investigators
- Reviewing the regularity of the official investigation reports
- Challenging protective measures (impounding, seizure)
- Negotiating with the administration to avoid referral to the public prosecutor
- Defence before the criminal court if proceedings are brought
Frequently asked questions
What is the difference between fraud and breach of trust under French law?
Fraud (escroquerie) requires active fraudulent stratagems to induce the handover of funds (false name, false capacity, deceptive scheme). Breach of trust (abus de confiance) sanctions the misappropriation of assets voluntarily entrusted on a precarious basis – for example, an agent who uses funds for purposes other than those agreed. The distinction determines the applicable penalty and the procedural strategy.
How should you respond to a DGCCRF investigation?
Verify the identity and authorisation of the investigators, request a copy of the investigation order, do not sign any document without reading it in full, and contact a lawyer immediately. The official reports drawn up during the investigation constitute directly usable evidence in any prosecution. Any statement made without legal advice may compromise your defence.
What is the limitation period for commercial fraud in France?
The limitation period is 6 years for criminal offences (fraud, breach of trust, product misrepresentation, misleading practices). Time runs from the date the offence was committed or, for concealed offences, from the date of discovery. In civil matters, the limitation period is 5 years (Article 2224 of the Civil Code). Acting promptly also helps preserve evidence.
Can you obtain emergency protective measures?
Yes. Where fraud has been established, we can urgently apply for a freezing order over the fraudster’s accounts or assets to secure recovery before judgment on the merits. This procedure requires demonstrating the existence of a claim and a threat to recovery.
What personal liability does a director face in cases of fraud?
A director may be prosecuted personally, even if they did not directly participate in the acts. A failure of supervision or oversight suffices to engage their criminal liability. Penalties are aggravated for company directors: up to 7 years’ imprisonment and a EUR 750,000 fine for breach of trust (Article 314-2 of the Criminal Code).