FAQ

In order to avoid any price fixing allegations, MAP Policies should be unilateral. This means that when you implement your MAP Policy, it is just that - a policy - it is not an agreement between you and the reseller. In fact, it is generally advisable for your MAP Policy to include an express statement that the reseller does not have to sign or execute the policy. However, you, as a manufacturer, retain every right to refuse to do business with or sell to those resellers that do not comply with the MAP Policy.

This may seem obvious, and for the most part the advertised price is easy to identify. It is the price consumers see when they go onto a reseller’s webpage or storefront. The issue gets more complicated with things like “click for price” buttons, email bounce-backs, and coupons or rebates. As a rule of thumb, any time a price is shown prior to the product being placed “in-cart,” it is considered advertising and the price shown must comply with the MAP Policy. However, a price that is only displayed “in-cart” is outside the scope of a MAP Policy. Other issues like product bundling also create confusion as to what constitutes the advertised price. These complications however can be avoided with a clearly worded and easy to understand MAP Policy.

It depends. In the event of a MAP Policy violation, the best practice is to immediately cease selling products to that reseller and notify the reseller that your business relationship is over. Such a strict policy, however, may not be realistic in practice. Instead, your MAP Policy could have varying levels of repercussions for MAP Policy violations. For example, you could issue a warning for the first violation, suspend the reseller’s account after the second violation, and terminate the relationship after the third violation. No matter how you decide to enforce your MAP Policy, it is critical that you clearly lay out your enforcement procedures in your MAP Policy and that you strictly enforce those procedures among all violators.

The key takeaways when creating a MAP Policy are that the policy needs to be easily understood, it needs to be unilateral, and it needs to be evenly enforced across all resellers. But, remember, these are merely guidelines. Your business is unique, and your MAP Policy should be specifically tailored to your company. You should consider hiring counsel to ensure that your MAP Policy is not only legal, but makes sense for the goals of your company.