Investigators of the French competition and consumer protection authority DGCCRF (Direction Générale de la Concurrence, de la Consommation et de la Répression des Frauds) have uncovered a million-dollar labeling fraud perpetrated by middlemen. Around 10 million bottles of Spanish wine, as well as wine from EU countries, were labelled in 2016 and 2017 by several major retailers with labels suggesting French origin, the DGCCRF accuses the retailers. This would have meant that they would have achieved prices up to twice as high, according to a report by the French Ministry of Economy, which caused a scandal in the country.
According to the report, a rosé produced in Spain, for example, was resold wholesale for 90 cents per litre - twice the market price of a Spanish rosé. On the labels they placed terms such as "Produced in France" or "Bottled in France" to disguise the origin. Only the hidden indications on the back label showed that the wine was produced in Spain or other EU countries.
In large-scale inspections by the competition and consumer protection authority DGCCRF at retail chains, supermarkets and restaurants, the investigators had found that about 20 percent of the shops and restaurants inspected had offered these wines. The investigators found stocks ranging from 2,000 hl to 34,500 hl - or around 4.6 million bottles. One trader was ordered to remove his stock of 16,700 hl, about 1.2 million bottles, from sale. The dealers and importers concerned are now facing charges of counterfeiting and misleading business practices.
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