MAP policies explained: a guide for brands

If you sell through resellers, one discounter advertising your products far below everyone else can drag down your whole channel. A minimum advertised price (MAP) policy is the most common tool brands use to prevent it. Here’s how MAP works, where the legal lines are, and how to monitor a policy fairly.

What a MAP policy is, and isn’t

A MAP policy sets the lowest price at which a reseller may advertise a brand’s product: on product pages, in ads and in emails. It typically doesn’t control the price the reseller actually charges at the till, which is why some retailers show “add to cart to see price”.

Brands use MAP policies to:

• protect the value of the brand, so it isn’t seen as permanently discounted;
• keep a level field for retailers who invest in service, display and expertise;
• stop their own store from being undercut by its partners.

The legal picture, in brief

United States

Two Supreme Court decisions shape the US position. In United States v. Colgate (1919), the court held that a business may choose whom it deals with, and may announce in advance the circumstances under which it will refuse to sell. In Leegin v. PSKS (2007), it held that agreements between a manufacturer and its resellers on minimum prices should be judged case by case under the “rule of reason”, rather than being automatically illegal.

The Federal Trade Commission’s guidance reflects this, and adds a caution: “some state antitrust laws and international authorities view minimum price rules as illegal, per se.” The FTC has also taken action where MAP policies went too far, for example by restricting in-store advertising or penalizing stores for others’ violations.

United Kingdom and European Union

Europe is much stricter. The UK’s Competition and Markets Authority has said that minimum advertised price policies for online sales “can equate to RPM and are usually illegal”, where RPM means resale price maintenance. Its 2022 guidance lists imposing minimum advertised prices as one of the ways a supplier can indirectly fix resale prices. EU competition rules on vertical agreements likewise treat fixed or minimum resale prices as a serious restriction. Recommending a retail price is generally allowed in both.

Writing a policy

With legal advice, a clear policy usually sets out:

• which products it covers, and the MAP for each (often the recommended retail price, or a set percentage below it);
• what counts as “advertising”: product pages, ads, emails, comparison sites;
• exceptions, such as brand-approved promotional periods;
• what happens after a violation, applied the same way to everyone.

In the US, many brands publish a unilateral policy rather than negotiating it with each reseller, in line with the Colgate decision. Ask your lawyer which approach fits your situation.

Monitoring a policy

A policy is only as good as your ability to see violations. Effective monitoring:

• Covers every place your products are sold: authorized retailers’ sites, marketplaces and comparison sites. You’ll often find unauthorized resellers along the way.
• Checks the advertised price where shoppers see it, including prices that appear only in the cart if your policy covers them.
• Keeps dated evidence of every violation: a screenshot, the page and the time. Resellers often fix a price quickly once contacted, and you’ll need a record of what you saw.
• Tracks history by seller, so you can tell a one-off error from a repeat offender.

Enforcing it fairly

Consistency matters, legally and commercially. Apply the steps in your policy the same way to large and small resellers, keep records of each case, and avoid ad-hoc deals with individual retailers about prices. Let your lawyer review the process, not just the policy document.