The acronyms thrown around in connection with a MAP policy are enough to make your head spin. For this week's edition of the MAP policy blog post, Vorys eControl sets it straight. We'll also identify what to consider from a resourcing perspective as your company evaluates whether to launch or revamp your MAP policies.
For a refresher on MAP policy basics, be sure to review last week’s post.
A valid question. A broader MAP policy covers both off-line and online advertising, whereas an Internet Minimum Advertised Price (IMAP) or electronic-only Minimum Advertised Price (eMAP) policy covers only online advertising.
The pros of having broader MAP policies is that if you happen to see an ad on a paper mailing, or hear an ad on the radio, that violates the policy, you can take action against the offending reseller. With only an iMAP policy, however, you do not have such recourse.
The “MAP” is the minimum advertised price that a reseller is permitted to advertise your product according to your policy’s terms. The “MSRP” is the manufacturer’s suggested retail price.
Some companies set their MAPs at the MSRP, whereas other companies set their MAPs as a percentage off of the MSRP or a certain amount per product less than the MSRP. Prior to launching a MAP policy, the company should be clear on what it wants the MAP and the MSRP to be for the products subject to the MAP policy.
Think about the 80/20 rule: what are your most important or popular products? What are your hero SKUs? What new products are coming out this year?
Companies should consider what products to make subject to a MAP policy from a business perspective, with lower-priced commodity products generally not being suitable for MAP policies.
A MAP monitoring provider will give you data on the actual advertised prices for the top internet hits for your products. That way, you can see if they are violating your minimum advertised price. To minimize the company’s legal risk, the company must administer the MAP policy. While you can monitor MAP without one, many MAP monitoring providers have tools and platforms to make the day-to-day administration easier. Spend some time doing demos with a few providers before deciding to formally engage a MAP monitoring provider.
It is important to have a dedicated individual, or small group of individuals, to serve as the MAP Policy Administrators. Preferably, this person should be outside of sales to avoid misaligned incentives.
The MAP Administrator is responsible for regularly reviewing data from your MAP monitoring company and enforcing your MAP policy, such as sending out notices and enacting violations. This administration does require some dedicated time and resources, so it is best to think ahead as to who in your company will serve that function or whether an additional hire is required.
Want to chat MAP? Reach out to attorney Jessica Cunning at [email protected] to schedule a virtual session. Jessica is a strategy leader in our nationally recognized Vorys eControl practice, helping companies draft, implement, and execute workable MAP policies.
Want to learn more? Consider reading Vorys eControl’s white paper “The Winning Strategy for MAP Success and Long-Term Brand Value in the eCommerce Market.”
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