How to Enforce MAP (Minimum Advertised Price) Efficiently.

Best Practices to effectively enforce MAP against Price Violations.

Minimum Advertised Price (MAP) is a price set by the manufacturer for authorized sellers, distributors, and online and offline stores or channels to protect brand identity and prevent sellers from undercutting the price to win by a buy box to increase their Profitability. 

Man worred about MAP violation by sellers

" MAP violation done by the unauthorized reseller is much higher than an

authorized reseller. The study says the unauthorized seller does 40% of MAP violations, and the authorized seller does 20% of MAP violations." - HBR

Here are eight ways to prevent map violation and keep you on the right side of antitrust law in the USA and Canada.

#1. Implement or Present a MAP policy: to all Sellers, Dealers, Distributors, and Retailers. The manufacturer must distinctly define the scope of the Internet Minimum Advertised Pricing Policy(IMAP), Electronic Minimum Advertised Pricing Policy (EMAP), and Broader MAP policy. There are two kinds of policy manufacturers can offer. The first is an agreement where the manufacturer and reseller agree on fixing the minimum selling price or promotion price. The second is a unilateral Policy where the manufacturer determines the price. It can help you with antitrust law in US and Canada if it is carefully drafted. However, MAP pricing is illegal in the UK and Europe. It is perceived as anti-competitive, as it violates the Competition Act in the UK and the general EU provisions regarding competition law in Europe. This law requires that there should be free pricing by everyone competing in the market, and the competition law provisions catch all attempts to set different pricing.

#2. Instantly Communicate the Violation to the seller. Even if you introduced the map policy for the Distributor and Seller, if some sellers do not follow your MAP policy, you should issue a warning to the seller about possible action at the first infraction point. That signals to the seller that you mean business. Amazon does not punish price violators, as it has given all the accountability to the manufacturers. It is a good time to issue a cease-and-desist letter to the violator at the second infraction point. Possible action you can take hold distribution and revoke authorized reseller rights and status. Stop discounts, allowances, rebates, and even access to the brand.

#3. Register your brand on the brand registry:

A brand registry is a powerful tool to preclude your brands from inauthentic and unauthorized sellers. Registering your brand on the brand registry also unlocks some premium features for content and marketing. Amazon brand registry team always helps protect your brand and its intellectual property. However, it can be very tricky sometimes. Join telegram discussions with brand owners to share best practices.

#4. Use the product serialization method.: Amazon does not force sellers to reveal their whereabouts. Placing serial numbers on the products can help you find distributors or retailers who are violating MAP.

#5. Surprise buying: Grey market and unauthorized sellers tremendously threaten any business. They come with meager prices and provide fake warranties that create a terrible customer experience and damage the brand's reputation. Surprise buying is an excellent strategy to find counterfeit or unauthorized sellers, even if they are selling items from the grey market on Amazon. You can get their account suspended via amazon support by showing proof of original vs. fake and taking legal action against them.

#6. Sell directly to Amazon: If you see many violations of the map, it is an excellent time to remove third-party sellers and stop selling products to them directly. Being a single seller, you can control price.

#7. Amazon Violates MAP: What if Amazon itself violates map policies and keeps your price at rock bottom? As Amazon controls the product prices and doesn't believe in map policies. It is an excellent decision to discourage authorized Sellers and distributors from selling on Amazon or ask them to comply with Map policy. If you are a retail vendor, set your ASIN or Item out of stock or non-replenishable on amazon, and sell directly via seller central.

#8. Educate Customers: Educate customers on the offline and online channels by clearly citing the difference between counterfeit and original products. It will protect your brand reputation and create trust among customers.

#9. Price monitoring system Or policing system: There are multiple price policing websites or systems in the market that provide you solutions about violators and sudden price changes. Tracking retail pricing across various channels such as Amazon, Walmart, other retail platforms, and more must be thorough so that retailers will be alerted if they violate the pricing policy.

Key Takeaways: 

The battle to protect your brand reputation is consistent and prolonged. Authorized sellers and distributors are your partners in growing your business. It is always good to have a conversation with them about MAP policy. Be proactive, constantly monitor MAP violations, educate customers, and use legal options against MAP offenders. The brand takes time to build and requires persistence and hard work.