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Wisconsin Contract between Manufacturer and Distributor Regarding Minimum Advertised Price
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FAQ
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.
A manufacturer does have a legal right to set a suggested retail price (a manufacturer's suggested retail price or MSRP). The manufacturer also has the right to terminate a retailer who prices below the MSRP.
A MAPP MAP pricing or an IMAP, as they are commonly called on the internet, is a contractual arrangement that requires a retailer to display a minimum advertised price (MAP) despite the actual selling price. So, in short, this is a control on the advertised price, but not on the actual price of the product.
A: The key word is "suggested." A dealer is free to set the retail price of the products it sells. A dealer can set the price at the MSRP or at a different price, as long as the dealer comes to that decision on its own. However, the manufacturer can decide not to use distributors that do not adhere to its MSRP.
Minimum advertised price policies are unilateral programs that manufacturers can use to limit their retailers from advertising products below a predetermined level. Unlike resale price maintenance (RPM) agreements, MAP policies don't strictly limit product pricing.
Since minimum advertised pricing only relates to advertised pricing and does not tell a retailer what they can sell it for in their store, this practice is legal under U.S. antitrust statutes.
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).
Minimum advertised price policies are unilateral programs that manufacturers can use to limit their retailers from advertising products below a predetermined level. Unlike resale price maintenance (RPM) agreements, MAP policies don't strictly limit product pricing.
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 storejust the lowest that they can show online or in an advertisement.
Since minimum advertised pricing only relates to advertised pricing and does not tell a retailer what they can sell it for in their store, this practice is legal under U.S. antitrust statutes.