Brand Lighting recently recieved this from one of the brands
we sell. This might help explain MAP, Minimum Advertised Price
Policy.
Effective January 1, 2011, Craftmade International, Inc. has instituted
a Minimum Advertised Price ("MAP") Policy for all Craftmade retailers
located in the United States ("Retailers" or "You"). Below are
answers to questions that Retailers may have about the Policy.
If you have any further questions about Craftmade ’s MAP Policy,
you are encouraged to contact Craftmade ’s Minimum Advertised Price
Policy Administrator.
Q: Is MAP Policy legal?
A: Yes. The antitrust laws give a manufacturer latitude to adopt
a policy regarding the ways in which resellers advertise prices
for its products and to refuse to deal with retailers who violate
that policy. Similarly, the antitrust laws allow retailers to
decide independently to honor such a policy. In some circumstances,
it would be permissible for Retailers and Craftmade International to agree upon
resale prices, price quotes, and advertised prices. Craftmade International, however,
has chosen to implement this MAP Policy unilaterally; Craftmade International will
not request or accept your agreement to this MAP Policy or to
the resale prices of Craftmade International products.
Q: Why has Craftmade International adopted this Policy?
A: Craftmade International products are prestigious, premium ceiling fan and lighting
products. Selling Craftmade International products involves a sophisticated understanding
of ceiling fans, lighting, and home design. Because of this,
Craftmade International chooses to deal with retailers that have invested meaningfully
in promoting Craftmade International products and in educating consumers about the
unique features of Craftmade International products. While many retailers make
investments in the Craftmade International brand, this Policy was implemented to
prevent other dealers from "free riding" on these investments
and offering Craftmade International products at prices that are inconsistent witHeight x XXX’s reputation for superior quality and craftsmanship.
In addition, Craftmade International has become concerned that some retailers may
advertise Craftmade International products at artificially low prices in an effort
to build overall customer traffic. Such advertised prices not
only undercut dealer profit margins on Craftmade International products, they also
create negative quality images for consumers, who naturally assume
that another brand advertised at a higher price must be of higher
quality. Craftmade International is concerned that artificially low prices on Craftmade International
products will make it difficult for Retailers to fulfill their
service obligations on Craftmade International products. Craftmade International’s objective is for
its products to compete with other brands in the marketplace on
the basis of quality, features and price, and for its brand to
be on a level playing field with other brands.
Q: If a product is listed with a MAP price on Craftmade International’s Price List,
may it be sold at a price less than the MAP Price for that product?
A: Yes. This Policy applies to "advertised prices," as that term
is defined in the Policy. It does not apply to "price quotes"
or "sales prices," as those terms are defined in the Policy. Retailers
may sell a product listed in Craftmade International’s Price List at any price they
wish without violating the Policy.
Q: If a product is listed with a MAP price on Craftmade International’s Price List,
may it be included in an advertisement announcing a storewide sale
or discount (e.g., "X% off all products in the store")?
A: It depends on the nature of the advertisement. If an advertisement
specifies an advertised price for a Craftmade International product and includes a
reference to a discount, rebate, coupon, free tax, free gifts,
etc., the advertisement may violate the Policy. Specifically,
if the discount, rebate, or other promotion announced in the advertisement
would result in a netted-down price on a Craftmade International product that is less
than the MAP Price for that product, then the advertisement violates
the Policy.
Q: What about advertisements that do not announce a specific price
for a Craftmade International product?
A: Importantly, an advertisement that simply announces discounts,
rebates, coupons, and other promotions does not violate the Policy.
Such an advertisement only violates the Policy when (1) an
advertised price for a Craftmade International product is specified in the advertisement
and (2) the value of the discount, rebate, coupon, or other promotion
results in a netted-down price that is below the MAP Price for
that product.
Q: What about websites and other communications that are restricted
to contractors, designers, and purchasing firms?
A: Websites or other communications that may only be accessed by
bona fide contractors, designers, and purchasing firms are not
advertisements to the general public. Prices communicated to bona
fide contractors, designers, and purchasing firms through such
restricted-access websites or communications are not "advertised
prices," as that term is defined in the Policy.
Q: Does this mean that a Retailer has to agree to advertise or
sell at the MAP Price or above?
A: No. Craftmade International is not requiring Retailers to agree to any aspect of
its MAP Policy. Rather, Craftmade International is implementing its MAP Policy as
its own policy and is advising Retailers that there will be certain
consequences if they violate the Policy. Retailers remain free
to follow the MAP Policy or not.
Q: Do Retailers need to have all of their ads pre-approved?
A: No. But if a Retailer has a question about whether an upcoming
ad will conform to the Policy, he should contact Craftmade International’s Minimum
Advertised Price Policy Administrator in writing.
Q: Will an honest mistake or inadvertent error constitute a violation
of the MAP Policy?
A: Craftmade International will consider the circumstances of each possible violation
on its own facts and will unilaterally determine if a violation
of the MAP Policy has in fact occurred.
Q: How will Retailers be notified if they have violated the MAP
Policy?
A: In writing, by Craftmade International’s Minimum Advertised Price Policy Administrator.
Q: What if a Retailer believes that a competitor has violated
the MAP Policy? What is Craftmade International going to do about it?
A: Any question about Craftmade International’s MAP Policy can be submitted to Craftmade International
in writing. But Craftmade International alone is responsible for determining if a
violation has occurred and, if a violation has occurred, enforcing
its MAP Policy. The details of Craftmade International’s enforcement decisions will
be strictly between the Retailer that has violated the Policy and
Craftmade International. Furthermore, Craftmade International’s salespeople will not be allowed to discuss
these details with Retailers, and Craftmade International will not reply to Retailers
that complain about the practices of competing retailers.
Q: Can Craftmade International change the MAP Price on a product during the product
year?
A: Yes. Craftmade International reserves the right to change the MAP Price on a product,
remove a product with a MAP Price from the Price List altogether,
and add a product with a MAP Price to the Price List at any time
and for any reason. Any changes in MAP pricing or to the Price
List can be found at www.Craftmade International.com.
Q: Can Craftmade International decide to list a product with a MAP Price on its Price
List but then decide that the product will not be subject to the
MAP Policy for a certain period of time?
A: Yes. On occasion, Craftmade International may elect to suspend its MAP Policy requirements
on specified products for a specific period of time. Any suspension
in Craftmade International’s MAP Policy requirements can be found at www.Craftmade International.com.
- Quantity Discounts
- New Home Owner Discount
- Interior Designer Discount
- Decorator Discount
- Contractor Discount
- Sale Prices
- Manufacturer Discounts
- Short Term Promotion
- Overstock Sale
- Short Term Sale Price
- Inventory Reduction Sale
- Bulk Discounts
- Discount for Federal Employees
- Discount off List Price
- Additional Sale Price we can only give if you ask
- Prompt Payment Discount
- Preferred Payment Method Discount
- Trade Discount
- Partial Payment Discount
- Sliding Scale
- Seasonal Discount
- Functional Discount
- Trade Rate Discount
- Cumulative Quantity Discount
- Accumulation Discounts
- Non-cumulative quantity discount
- Quantity Discount for a Single Order
- Price Matching
- Discounts for Better Customers
- Disability Discount
- Educational Discount
- Student Discount
- Price Reductions
- Military Discount
- Senior Discount
- Coupons
- Rebates
- Refunds
- Discounts
- Allowances
- Employees Discounts: Contact us to see if your company qualifies
for a company discount.
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