Are MAP (Minimum Advertised Price) Policies Legal? A Guide for Brands

Minimum Advertised Price (MAP) policies are one of the most effective tools manufacturers have for protecting their brand value and reseller relationships -- but they also carry legal weight. If you’re wondering whether MAP policies are legal in the U.S. (and elsewhere), this post will clarify what’s allowed, what’s risky, and how to stay compliant.

Why Unilateral Implementation Is Crucial

The legal key to a MAP policy is that it's not a contract. You don’t ask resellers to agree, co-sign, or acknowledge it.

Think of it like this:

The manufacturer sets the rules. Resellers can follow them or risk losing the right to carry the product. That’s legal.

But if the policy becomes a joint agreement, it might cross the line into vertical price fixing --which is illegal.

This approach is supported by the 1919 United States v. Colgate & Co. ruling, which gave manufacturers the right to choose who they do business with, so long as there’s no explicit price agreement.

Are MAP Policies Vertical or Horizontal Agreements?

MAP policies are vertical, not horizontal. This is a common misunderstanding.

• Vertical agreements: Between parties at different levels of the supply chain (manufacturer and reseller)
• Horizontal agreements: Between competitors (e.g., two manufacturers or two retailers)

Calling MAP policies "horizontal agreements" is legally incorrect and misleading. This matters because horizontal price fixing is always illegal, while vertical policies may be legal if structured correctly.

MAP vs. Resale Price Maintenance (RPM)

It’s important to distinguish between advertised price (MAP) and resale price (RPM). MAP policies restrict only the former.

You cannot tell a reseller what price to sell a product for at checkout -- but you can tell them how low they’re allowed to advertise it.

If you try to control the actual sale price, that becomes resale price maintenance, which is more legally sensitive and subject to scrutiny.

What About State Laws?

While MAP is legal federally, some states (like California) may view resale price influence with more skepticism.

Even under the Colgate Doctrine, states can challenge MAP enforcement if:

• There's evidence of coercion or pressure
• Enforcement isn't consistent
• It appears to restrict trade

To stay safe, manufacturers should:

• Publish their MAP policy publicly
• Avoid negotiation
• Enforce it consistently

What About International MAP Laws?

MAP policies are legal in the U.S. but are often illegal or restricted in other countries: United Kingdom & EU: MAP-style pricing is usually considered anti-competitive and may result in heavy fines. Canada: MAP policies may be allowed but require a careful legal framework.

Always consult a trade attorney if you sell internationally.

Enforcement Challenges

Even a legally sound MAP policy is hard to enforce without help. In today’s landscape: * Resellers hide violations in add-to-cart pricing, promo codes, or hidden URLs * Unauthorized sellers flood Amazon and eBay * Grey market goods make tracking even harder That’s why many brands use MAP monitoring software to scan listings, detect violations, and automatically escalate enforcement.

Best Practices for a Legally Sound MAP Policy

1. Act unilaterally -- never create a formal agreement 2. Apply only to advertised prices, not sale prices 3. Be consistent in enforcement across all channels 4. Avoid side deals or one-off negotiations 5. Clearly communicate the policy but avoid requiring signatures 6. Use tools to document, monitor, and escalate violations

How to Enforce Your MAP Policy

Once you have a legal policy, the real work begins: enforcement.

Enforcement Steps:

* Monitor online marketplaces (Amazon, Google Shopping, etc.) * Identify violators (authorized or unauthorized) * Send a warning or escalation email * Document violations (screenshots, timestamps, URLs) * Take action: cut off supply, revoke authorization, or pursue takedowns

Tools That Help:

* Trade Vitality: Automates monitoring + enforcement * eBay VeRO: Request removal of IP-infringing listings * Amazon Brand Registry: Report rogue listings * Legal options: Pursue trademark or copyright claims if products differ materially (e.g., missing serial numbers, altered packaging)

MAP Policy Legal FAQ

Is MAP legal in the UK? No. The UK and most of the EU treat MAP-like restrictions as antitrust violations. Can I require retailers to sign my MAP policy? No. That implies agreement. You should distribute it, but not ask for a signature. Can I enforce MAP if I don’t have authorized resellers? Yes, but it’s harder. You’ll need to rely on brand protection tools, takedown requests, and legal leverage. Is MAP the same as a price floor? No. MAP controls advertised price only. A price floor (on sale price) would likely be illegal unless it’s a unilateral UPP (Unilateral Pricing Policy).

Final Thoughts

MAP policies are 100% legal in the U.S. when implemented correctly. But the line between legal protection and price fixing is thinner than most brands realize.

If you’re planning to roll out or enforce a MAP strategy: * Structure it right * Don’t negotiate it * Enforce it consistently And if you want to make that enforcement scalable...