Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: September 16, 2016
The Firm
201-896-4100 info@sh-law.comOne 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.
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 This is very different than setting a minimum selling price, which is illegal. This may not be as simple as it sounds.
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.
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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!