One crucial aspect of any agreement between a retail business and a supplier are the minimum advertised pricing policies, also known as MAP agreements.There are various pros and cons to MAP agreements, however, it is important for a small business to know there are legally enforceable restrictions against advertising a manufacturer’s products or services below a certain price.
Why are MAP Agreements relevant?
Regardless of size, retailers need to be aware of the stipulations and flexibility of a MAP agreement because they may restrict a company’s ability to compete on price.
“MAP agreements make it difficult for retailers to compete on price.”
This can pose a challenge due to the fact that consumers now conduct price comparisons in real-time through their mobile devices – even while in a brick and mortar store. This can have a significant impact on a small business. The purpose of MAP agreements is to prevent a customer from finding a lower advertised price and effectively stop them from being lured away to another brick and mortar store or make the purchase online.
MAP agreements set the lowest price that a retailer can advertise for a product.
Obviously, for an online purchase, the consumer needs to be told the price at some point before the purchase. Further, MAP agreements may put restrictions on advertising rebates, coupons, discounts and other methods that reduce the cost.
Bottom line on MAP agreements
MAP agreements can be either detrimental or positive for both retailers and suppliers. Retailers need to know what is acceptable under the MAP agreement before deciding on marketing efforts.
MAP agreements can be either detrimental or positive for both retailers and suppliers.
Suppliers and manufacturers need to be sure their MAP policies do not run fowl in terms of price fixing and do not put too many restrictions on the retailers as to make selling the product more trouble than it is worth.When done correctly, MAP agreements level the playing field for all retailers of a product and protect the supplier or manufacturer from advertising that is detrimental to the reputation of their products.
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
What Small Businesses Need to Know About MAP Agreements
Author: Scarinci Hollenbeck, LLC
What You Need to Know About MAP Agreements
One crucial aspect of any agreement between a retail business and a supplier are the minimum advertised pricing policies, also known as MAP agreements.There are various pros and cons to MAP agreements, however, it is important for a small business to know there are legally enforceable restrictions against advertising a manufacturer’s products or services below a certain price.
Why are MAP Agreements relevant?
Regardless of size, retailers need to be aware of the stipulations and flexibility of a MAP agreement because they may restrict a company’s ability to compete on price.
“MAP agreements make it difficult for retailers to compete on price.”
This can pose a challenge due to the fact that consumers now conduct price comparisons in real-time through their mobile devices – even while in a brick and mortar store. This can have a significant impact on a small business. The purpose of MAP agreements is to prevent a customer from finding a lower advertised price and effectively stop them from being lured away to another brick and mortar store or make the purchase online.
MAP agreements set the lowest price that a retailer can advertise for a product.
Obviously, for an online purchase, the consumer needs to be told the price at some point before the purchase. Further, MAP agreements may put restrictions on advertising rebates, coupons, discounts and other methods that reduce the cost.
Bottom line on MAP agreements
MAP agreements can be either detrimental or positive for both retailers and suppliers. Retailers need to know what is acceptable under the MAP agreement before deciding on marketing efforts.
MAP agreements can be either detrimental or positive for both retailers and suppliers.
Suppliers and manufacturers need to be sure their MAP policies do not run fowl in terms of price fixing and do not put too many restrictions on the retailers as to make selling the product more trouble than it is worth.When done correctly, MAP agreements level the playing field for all retailers of a product and protect the supplier or manufacturer from advertising that is detrimental to the reputation of their products.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
