OUTSIDE DISTRIBUTING ADVERTISED PRICE POLICY (MAPP)
Effective April 16, 2015 v.0318
Outside Distributing has unilaterally adopted a Minimum Advertised Price Policy (“MAPP”), which is applicable to all authorized Outside Distributing dealers, distributors and resellers worldwide. MAPP is intended to protect the Outside Distributing brand as a premium offering, preserve the opportunity for competitive reseller margins and avoid channel conflict between Authorized Partners.
Outside Distributing will, without assuming any liability, impose sanctions as described herein against Authorized Partners who advertise Outside Distributing products online at prices below MAPP. MAPP pricing guidelines are consistent with the current Price List in existence between Outside Distributing and the Authorized Partners. Outside Distributing will not discuss any conditions of acceptance related to the MAPP guidelines, as they are non-negotiable and will not be altered for any Authorized Partner.
Policy: Outside Distributing distributors shall not advertise Outside Distributing products at prices less than Outside Distributing’s Minimum Advertised Price Policy (MAPP Price). The MAPP Price is Outside Distributing’s Suggested Trade Price as set forth in the current Outside Distributing Trade Price List, minus 10%. Thus, if the Suggested Trade Price is $500, the lowest MAPP Price is $450. Any advertising containing a price lower than the MAPP Price is a violation of this policy, except that an advertised price rounded down to the next dollar (e.g., $449.99 rounded down to $449) will not constitute a violation. “Price” includes all price-related terms, such as discounts or percentages off, free premiums, rebates, and discount coupons for existing or future purchases.
Scope: This policy applies to all forms of advertising including mailings, facsimiles, catalogs, displays at consumer exhibitions and shows, radio, television, and any and all other forms of advertising media, including, without limitation, the Internet and any other electronic network. Any price information relating to Outside Distributing products on an Internet website that can be accessed directly through any hypertext link or by any other method that uses the hypertext protocol (http) is considered to be advertising for purposes of this policy. Distributors are responsible for ensuring that their pricing is at or above the MAPP Price on internet search engines. In addition, Distributors shall not sell or offer for sale any current Outside Distributing products via any Internet auction function.
Broadcast e-mails are a form of advertising, and this policy applies to them. Emails sent in response to specific customer inquiries about identified products are not considered advertising.
The price specified in the electronic “shopping cart” at “checkout” is not considered advertising. Language such as “Click ‘Buy’ for Price” or “Click ‘Add to Cart’ for Price,” “Click for Price” or “Click for Quote” may NOT be used on the same website page on which a Outside Distributing product appears unless these displayed prices are within the Minimum Advertised Pricing Allowance.
Any Internet advertisements (i.e., all website pages above the “shopping cart” level) in which an Outside Distributing product appears must include a price, which must be no less than the MAPP Price.
Language such as “We Offer the Best Prices,” “We Will Meet Competitors’ Prices,” or “Call for Price” may be used.
Advertising shall not include language or graphics that state or suggest that Outside Distributing product is being promoted at a price less than the MAPP Price. For example, it would violate the Policy to:
This policy is applicable to all online advertised prices made on a web browser search; an Authorized Partner’s home page; content on a webpage within the Authorized Partner’s site or domain or, if the Authorized Partner is conducting e-commerce through a third party or subsidiary site or domain, content on a third party or subsidiary site or domain; or any other electronic media source, including Apps, social media forums and internet auctions.
Show the price of the Outside Distributing product with a slash line through it in a manner that states or suggests that the advertised offer is less than the MAPP price.
Advertise “$X off” or X% off’ in a manner that states or suggests that the advertised offer is less than the MAPP Price (i.e., unless MAPP products are specifically identified as excluded from the offer).
Advertise any Outside Distributing product as a “free” or “gift” item. Unless otherwise authorized in writing for a specific promotion approved by Outside Distributing in advance of advertisement.
Advertise a bundle including any Outside Distributing product in a manner that suggests that the Outside Distributing product is being offered at a price below MAPP.
Use language such as “Sale Price” or “New Low Price” or words such as “Subtract,” “Less” or “Take Away,” in a manner that states or suggests the advertised offer is less than the MAPP Price.
Include language such as “Price Too Low to Print.”
Value-add promotions on Outside Distributing products can be advertised without violating MAPP as long as the Outside Distributing product is advertised at or above MAPP guidelines. Authorized Partners may not use shipping and handling incentives to circumvent MAPP. Product promotions with a price below MAPP guidelines shall not violate this policy if they are advertised in conjunction with Outside Distributing approved promotional activities.
In-Store Advertising: This policy does not apply to in-store advertising, such as shelf-talkers, price tags, or window displays. This policy does not apply to products that Outside Distributing has sold as “close-out” merchandise.
Actual Sales Price: This policy applies only to advertised prices, and does not relate to actual sales prices of any item. Outside Distributing does not seek any wholesaler’s agreement on minimum selling prices, and no representative or employee of Outside Distributing is authorized to accept any such agreement from a Outside Distributing distributor.
Enforcement: Outside Distributing will enforce this policy through its own staff and outside consultants and agents. Outside Distributing will unilaterally make all determinations relating to a violation of the MAP Policy in its sole satisfaction. There will be no warnings, threats, discussions, negotiations, or appeals.
Mistakes: There are no exceptions to the policy. A distributor is responsible for its advertising, and Outside Distributing does not have the resources to determine whether a violation is intentional or accidental.
Penalties: Outside Distributing will apply to appropriate penalty for each violation in its sole discretion. Penalties will include suspension of shipments on a mis-advertised product line; suspension of shipments of a broader class of products; suspension of all product shipments; reduced pricing level discounts and/or termination.
MAPP Changes: Outside Distributing reserves the right at any time to modify, suspend, or discontinue the MAPP in whole or in part. Subject to the gravity and nature of the infraction, Outside Distributing, at its discretion, may accelerate the sanction level. All matters of interpretation and application of the terms of the MAPP shall remain within the sole discretion of Outside Distributing.
It is important to note that this MAPP policy has been set in place to protect all parties involved and we appreciate your understanding and commitment to ensuring MAPP is followed as discussed within this agreement.
Questions: Any questions about this policy should be directed, in writing, ATTN: MAPP Policy Dept., 266 Charlotte Street, Suite 402, Peterborough, Ontario, Canada, K9J 2V4 or by email to firstname.lastname@example.org
Effective Date: This policy becomes effective April 16, 2015.