A Practical Guide to Minimum Advertised Price Policies
Policies that set the lowest price at which resellers may advertise a product.
Marcus Adeyemi
At a glance
- Advertised price MAP governs advertising, not the final sale price
- Antitrust resale price arrangements are analyzed under competition law
- Enforcement policies are usually applied unilaterally
- Monitoring violations must be detected to be acted on
Why it matters
Why it matters: MAP policies protect brand positioning and reseller margins, but pricing agreements carry antitrust considerations.
Best practice
- Get legal advice before setting a policy
- Write the policy clearly and apply it consistently
- Monitor reseller advertising
- Document enforcement decisions
- Keep pricing conversations with resellers within policy
Common pitfalls
Watch out for:
- Agreements negotiated on final selling prices
- Inconsistent enforcement
- Policies with no monitoring
- Informal pricing arrangements
When to call in a specialist
Bottom line Bring in help before introducing reseller pricing policies.
Where this comes from
- Federal Trade Commission — Advertising FAQs: A guide for small business
- Federal Trade Commission — Competition guidance
The figures and practices above come from the sources listed.
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