Is MAP pricing legal?

MAP policies are perfectly legal under U.S. antitrust laws. (Such policies have actually been used since 1919 — nearly 100 years!) As long as a manufacturer or supplier acts independently from its resellers, a MAP policy isn’t considered a form of vertical price fixing.

Can you sell below MAP pricing?

Unlike a resale-price-maintenance agreement, a MAP policy does not stop a retailer from actually selling below any minimum price. In a resale price maintenance policy or agreement, by contrast, the manufacturer doesn’t allow distributors to sell the products below a certain price.

What is a MAP pricing agreement?

A minimum advertised price policy, or MAP policy, is a pricing agreement between a manufacturer or brand and its resellers to not advertise the price of a specific product below a predetermined price.

How do you enforce a MAP price?

How Can I Enforce my MAP Pricing on Amazon?

  1. Identify Key Distribution & Retail Buyers to Track.
  2. Sending a Cease & Desist Letter.
  3. Product Serialization.
  4. Offer a Product Warranty.
  5. Prohibit Digital Sales on Amazon in Your Contract.
  6. Sign Up for Amazon Brand Registry.
  7. Use a Price Monitoring Solution.

Are MAP policies illegal?

If designed incorrectly, a court could find your MAP policy an illegal restraint of trade under state, federal or foreign antitrust laws. The penalty for such a violation can be disastrous – antitrust laws allow claimants to pursue treble (triple) damages and the government may impose additional civil penalties.

How is MAP pricing calculated?

a) The Minimum Advertised Price (MAP) shall be calculated as a 20% discount from the most current published Manufacture Suggested Retail Price (MSRP) list. Example: Angels’ Eyes Product with a MSRP of $50.00 has a MAP of $40.00 (50.00 x . 80).

What is the purpose of MAP pricing?

MAP stands for Minimum Advertised Price. Brands create MAP policies to outline the minimum price that retailers can advertise their products. Brands often set minimum advertised prices at a level that will allow retailers to make a decent profit.

Are maps enforceable?

MAP is a policy from manufacturers that dictates the lowest price their distributor or reseller can advertise the products online or in marketing materials — but it does not enforce what price they can sell it at in brick and mortar stores or in private transactions.

What is the difference between MSRP and MAP?

A helpful way to think about the difference is that an MSRP is like an unofficial upper limit for your price, and your MAP is an official lower limit for your price. An MSRP is aimed at the consumer, and a MAP is aimed at the retailer.

How do you enforce MAP pricing?

What is MAP minimum advertised price?

“In its simplest form, minimum advertised pricing (MAP) is the lowest price a retailer can advertise the product for sale. To clarify, this does not refer to the lowest price they can sell it for in their store—just the lowest that they can show online or in an advertisement.”