Selling at cost price is a business practice consisting of selling a product at the lowest possible price without incurring a financial loss. According to the circular of January 10, 1978, on commercial relations between companies, the cost price includes the purchase cost less any discounts granted by the supplier, plus VAT and, where applicable, transport costs. This method is often used as a loss leader, but it is strictly regulated to prevent the distributor from selling below the actual purchase cost, which would be considered selling at a loss. Similarly, if the product has been promoted as part of a marketing campaign, the distributor cannot sell it at a price higher than the actual purchase price, under penalty of being accused of false advertising.