How Can You Address MAP Policy Violations?

by Haris Quintana

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Gone are the days when implemented laws and guidelines for early traders are relatively simple and supervised by just one regulating body in an ancient government. Nowadays, multitudes of commercial laws and policies are being drafted and proposed to make sure that both manufacturers and consumers are doing the right trade. Many organizations and unions are also being founded in different states and countries. Thanks to these, there is a higher level of protection for both consumers and manufacturers.

A particular example is minimum advertised pricing (MAP) policy. This is a legal agreement that sets a product's lowest possible advertised price, whatever industry it may be. MAP does not necessarily dictate the lowest price for which a product can be sold by retailers in stores. It only restricts the amount that they can include in an online or print advertisement.

MAP Policy Enforcement

The MAP policy gives protection to manufacturing companies. When customers believe that they can purchase a product for a much less price than the retail price suggested by the manufacturer, then they may decide on never buying it at its recommended price again, consequently harming the brand.

Proper and rigid enforcement of the MAP policy is essential to decrease and find solutions to cases of MAP violations, no matter how minor (or major) they may be. MAP agreements are designed to promote fair competition across resellers. This is to maintain the identity, image, and value of the brand through consistent pricing — enabling small-time sellers to compete with major distribution channels, preventing the underpricing of products, and safeguarding seller margins.

How to Address Violation Reports

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Many online selling portals and platforms have their own guidelines for helping manufacturers resolve violations from retailers. For instance, in Amazon, MAP violators are addressed directly by manufacturing companies

The first method is to identify the violators and then giving them warnings. After all, you have to give them the benefit of the doubt. It is best to let them know that they did something wrong. They would probably stop if they get noticed. If it is a repetitive offender, however, manufacturers can resort to ceasing distribution contracts or banning the retailer from selling the product. A message can also be sent to all retailers that MAP is strongly enforced, followed by a series of reminders. Non-responsive and repeat violators can be reported to Amazon as well.

MAP policy monitoring also helps manufacturers track down and keep records of violators. Brands can impose strict compliance on MAP policy enforcement through the use of digital tools, software, and web-based systems. These sophisticated solutions are equipped with modern features that provide real-time updates, violation reports, and easy access to an efficient database system.

Vigorous monitoring and enforcement of the MAP policy is vital for the assistance and protection of all manufacturing companies. Violations through advertising significant amounts of discounts can compromise a brand's reputation and affect profitability. The retail sales industry is an integral part of every society in the economic aspect. Therefore, keeping operations well-functioning and legally compliant will be beneficial for every citizen, may they be consumers, retailers, or manufacturers.