Carrefour, the world's second-largest retailer after Wal-Mart Stores Inc., was fined €2 million by a correctional court in Evry (France) for false advertising, selling items below cost and collusion with suppliers.

"The management takes note of the decision by the court in Evry, and is surprised by the severity of the punishment handed down. (Carrefour) reserves the right to appeal," said a representative of the French retailer.

French consumer groups have long accused Carrefour and other retailers of misleading consumers through inaccurate advertising about low prices. At the same time, Carrefour's rivals have accused it of illegally selling below cost.

While the €2 million fine was large, it represents a small fraction of Carrefour's profits. Carrefour's revenue in 2006 was €77.9 billion.

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