A proper minimum advertised price (MAP) policy enforcement would help online retailers protect not only their business but also their reputation as well.
In the U.S., the Federal Trade Commission defined a MAP policy as a pricing system for product brands such as manufacturers. These companies may choose to deal only with retailers that agree on their resale price policy.
When planning an agreement over a MAP policy, brands should be careful about how they nuance the language involving resale prices. While the focus should be to deter unauthorized sellers, some official resellers may still sell your product below the minimum threshold amount.
In such cases, they can settle this under the minimum resale price maintenance (RPM). The laws on RPM dispute can be complicated since they vary among states. It becomes more complex when the sales transaction was online.
A solution for this requires the assistance of a business lawyer, particularly if you are involved in a partnership with Amazon.
Brands agree on reselling their products online for a minimum price to avoid a bad impression among consumers. For instance, a certain shopper buys an item from an authorized seller for $50, but the person becomes upset when they find out that the same product listed on another website costs $40.
Those who see their products listed on Amazon should make sure that their product line is well represented under the online retailer’s Brand Registry. This is important even if you prefer not to sell your products on the website, as there will be a seller of your product sooner or later due to the popularity of Amazon.
Before embarking on how to enforce an efficient MAP policy, it pays to know more about how the system works in the online market. Many subscription tools offer valuable insights to keep your brand protected and your bottom-line intact.