MAP policy example for an equipment brand

What is a MAP policy?

It sits next to a price most brands already publish. The FTC says of an MSRP that the key word is suggested, and that a dealer is free to set the retail price of the products it sells. A MAP policy is narrower: it sets the floor for what a reseller advertises, by model number, in a dated price list.

What does the FTC say about MAP?

The FTC guidance says a manufacturer can implement a dealer policy on a take it or leave it basis. In 2007 the Supreme Court determined that all manufacturer-imposed vertical price programs should be evaluated using a rule of reason approach. The FTC notes that this change is in federal standards, and that some state antitrust laws and international authorities view minimum price rules as illegal, per se (FTC).

This post is general information, not legal advice. Have counsel review your policy before you rely on it.

What went too far in the FTC's music case?

Those policies were in effect for more than 85 percent of market sales, and the FTC found they prevented retailers from telling consumers about discounts on records and CDs. The lesson for an equipment brand is about reach. The FTC gives a manufacturer room over advertising it helps pay for. A policy that reaches every ad a dealer pays for itself, inside its own store, with a penalty across every location, is the kind the FTC has challenged.

What goes in a MAP policy?

1. Scope. The covered products by model number, in a price list with a date on it.
2. Advertised price. Any price a reseller shows the public, including the price on a marketplace listing.
3. The brand decides. The brand sets the policy and changes it on its own, and does not negotiate it with any reseller.
4. Breach steps. A written notice first, then a pause in supply, then the end of supply.
5. One contact. One named person records each breach with the date, the seller and the price, and decides the next step.
6. Seasonal update. A new dated price list before each season, sent to every reseller on the same day.

Then apply it the same way to every reseller, including the ones that sell the most. A policy that bends for the biggest account is hard to hold against anyone else.

Is there a sample MAP policy to start from?

[Brand legal name]
Minimum advertised price policy
Effective [date]

1. Scope
This policy covers the [brand name] products listed in the attached price list dated [date]. The price list sets a minimum advertised price ("MAP") for each model number.

2. What counts as an advertised price
An advertised price is any price a reseller shows to the public for a covered product, in print, online, in email or on a marketplace listing. On Amazon and other marketplaces, the price shown on the product listing is an advertised price.

3. The brand sets this policy alone
[Brand legal name] sets this policy on its own and may change it at any time. It does not negotiate this policy with any reseller.

4. What happens after a breach
If a reseller advertises a covered product below MAP:
First breach: a written notice to the reseller.
Second breach within [number] months: [Brand legal name] pauses supply of covered products for [number] days.
Third breach within [number] months: [Brand legal name] stops supplying the reseller.
[Brand legal name] alone decides whether a breach occurred and what follows.

5. Contact
[Name], [title], [email] records each breach with the date, the seller name, the product and the advertised price, and answers questions about this policy.

6. Price list updates
[Brand legal name] issues a new dated price list before each season and sends it to every reseller on the same day. Each list takes effect on the date printed on it.

How does a MAP policy apply on Amazon?

Amazon says that when multiple sellers offer the same product, each offer is viewable from the same product detail page (How to sell on Amazon). Its Brand Registry page describes tools for IP infringement, store policy violations and regulatory compliance concerns, and does not mention advertised price (Amazon Brand Registry). Enforcement stays with the brand: the notice, the pause and the decision to stop supplying.

The guide to MAP policy on Amazon covers checking listings on a schedule and what to do when the seller is not one of your dealers. The price leak check shows what selling below MAP on one listing costs you.

Crew Grade sells on Amazon as the authorized reseller for independent makers of professional lawn and landscape equipment, and never lists a product below the brand's MAP. The deal lists the terms on one page. If your line fits, apply as a brand.