Free riding: no need to seek an economic profit


Free riding: no need to seek an economic profit

The behavior of a non-profit organization shall be punishable on the basis of free-riding, even though there is no economic interest involved.

In this case, an association has misappropriated another association’s information campaign to serve its own cause.

The association requested the dismissal of claims based on article 1240 of the French Civil Code, on the ground that free-riding should be excluded in the absence of economic purpose. 

In a decision rendered on February 16, 2022 and published in the Bulletin, the French Supreme Court points out that such an action can be brought "regardless of the legal status or the activity of the parties, as long as the free-rider places itself in the wake of the victim, relying on its efforts, know-how, repute or investments”.  

#freeriding #nonprofitorganization #frenchsupremecourt