Most manufacturers enforce a or MAP policy in an effort to put a stop to price wars between retailers. It also helps them protect their brand equity and establish a pricing threshold for their products before distributing these to resellers and vendors. Some retailers, however, see the policy’s enforcement as illegal, as it gives manufacturers the power not to allow vendors who do not follow their MAP policy to sell their products.
Here are some facts surrounding the enforcement of the MAP policy.
Retailers Have to Agree to the MAP Policy First
Manufacturers run through their MAP policy with resellers first before rolling it out. It is not as if these vendors did not know about it before agreeing to sell the products. They do have the choice to agree with the terms or not. However, if they want to sell the manufacturer’s products, they should follow the rules of the MAP policy, which specifies the lowest price they can advertise for the products. This is similar to agreeing to terms and conditions for the use of any product.
Retailers Can Choose to Sell Products from Other Manufacturers
Resellers can choose not to agree to a MAP policy if they do not want to. They can always sell products from other manufacturers that have no MAP policy. However, they do risk having other vendors undercutting them in price. Avoiding that is one of the reasons manufacturers enforce MAP in the first place.
The enforcement of a MAP policy by manufacturers is legal. Retailers and vendors need to know that they are in no way compelled to agree with it. If they do sell the products, however, they are subject to MAP policy enforcement.