MAP Pricing Policy: Template and Enforcement

A MAP pricing policy sets the minimum advertised price at which resellers may promote a manufacturer's products. It does not control what a retailer ultimately charges at checkout; it controls the price shown in ads, listings and marketing. Brands use MAP to stop online price wars that push stockists away, and in the US a well-drafted, unilaterally enforced policy is generally lawful.

This guide explains what MAP covers, how it differs from MSRP and resale price maintenance, the legal background, a practical template outline, an enforcement process and the mistakes that get brands into trouble. This is general information, not legal advice; antitrust law is fact-specific, so have a lawyer review your policy before you publish it.

What is a MAP pricing policy?

MAP stands for minimum advertised price. A manufacturer or brand publishes a policy stating the lowest price at which authorized resellers may advertise each product, and the consequences for advertising below it. Typical reasons for adopting MAP:

• Protecting full-price retailers who invest in displays, staff training and customer service.
• Preventing a race to the bottom among online sellers that erodes brand perception.
• Keeping room in the margin for retailers to stock the product at all.
• Making the brand's own direct-to-consumer pricing consistent with its stockists.

MAP vs MSRP vs resale price maintenance

Term	What it controls	Binding?	Legal risk level
MSRP	Suggested final selling price	No, a recommendation	Low
MAP policy	Lowest advertised price	Enforced by refusing to deal, under a unilateral policy	Generally low to moderate if unilateral
Resale price maintenance (RPM) agreement	Actual selling price, agreed with resellers	Contractual	Higher; judged under the rule of reason federally, and some states are stricter

The legal background in brief

Two US Supreme Court decisions frame most MAP discussions:

• United States v. Colgate & Co. (1919). A manufacturer may announce in advance the prices at which it wants its products resold and refuse to deal with resellers who do not follow them, provided it acts unilaterally. Policies built on this principle are often called Colgate policies.
• Leegin Creative Leather Products v. PSKS (2007). The Court held that minimum resale price agreements are no longer automatically illegal under federal law and must be judged under the rule of reason. You can read the Leegin opinion at Cornell's Legal Information Institute.

The Federal Trade Commission has noted that MAP policies restrict the advertised price rather than the price at which a product is sold, and it has flagged enforcement tactics that can create an improper agreement, such as requiring manufacturer approval for deviations from suggested prices. See the FTC's speech on vertical issues in federal antitrust law for background. Several states, including California, New York and Maryland, take a stricter view of minimum resale price agreements under their own laws, which is another reason to keep MAP unilateral and limited to advertising.

MAP pricing policy template: what to include

Most effective MAP policies fit on one or two pages. Use this outline as a starting point and adapt it with your lawyer:

1. Purpose statement. A short explanation of why the brand has a MAP policy, such as protecting brand value and supporting authorized retailers.
2. Unilateral nature. A clear statement that the policy is adopted unilaterally, that the brand will not seek or accept agreement from resellers, and that resellers remain free to set their own selling prices.
3. Covered products and MAP prices. Reference a MAP price list that the brand may update with notice, for example 30 days.
4. Definition of advertising. Websites, marketplaces, email, social media, print ads, comparison shopping feeds and pop-ups. State whether add-to-cart pricing, in-store pricing and customer quotes are excluded.
5. What counts as a violation. Advertising below MAP, including through bundles, coupons, rebates or free gifts that effectively reduce the advertised price.
6. Exceptions. Brand-approved promotional periods, discontinued items, and damaged or refurbished stock if clearly labelled.
7. Consequences. The brand's own action, for example suspension of orders for a set period, loss of promotional support, and termination for repeat violations.
8. No discussion clause. A statement that the brand will not discuss the policy with resellers or negotiate it, and that sales staff are not authorized to modify it.
9. Effective date and right to change. The brand may change or withdraw the policy at any time.

Worked example: setting MAP for a small brand

The figures are illustrative. A cookware brand sells a skillet with a unit cost of $22 to retailers at $45 wholesale. MSRP is $90, which gives retailers a keystone margin. Online sellers have started advertising it at $64, and two kitchen stores have stopped reordering.

Price point	Amount	Retailer margin
Wholesale	$45	n/a
MSRP	$90	50%
Proposed MAP	$79	43%
Price being advertised online	$64	30%

The brand sets MAP at $79, below MSRP, which leaves room for retailers to promote the skillet while still earning a 43% margin. It allows two approved promotional windows a year where all resellers may advertise $69. The brand's own website also follows the $79 MAP. After the first quarter, its wholesale account manager confirms the two kitchen stores have resumed orders.

Before setting MAP, check your own wholesale pricing structure, because MAP only works if the gap between wholesale and MAP gives retailers a sensible margin.

How to enforce a MAP policy

Stage	Typical action	Tip
Monitoring	Check marketplaces and retailer sites weekly or use monitoring software	Screenshot violations with date and URL
First violation	Written notice citing the policy	State the action in the policy; do not negotiate
Second violation	Order suspension for a set period, such as 30 or 60 days	Apply the same period to every reseller
Third violation	Termination of the reseller account	Document the decision and the reasons
Unauthorized sellers	Investigate the supply source; consider trademark or marketplace brand tools	MAP policies apply to accounts you sell to

Consistency matters more than strictness. Letting a large retailer off while terminating a small one undermines the policy and can create legal risk. Cut off accounts by stopping new orders and invoices rather than threatening or haggling; your payment terms and account agreements should allow you to stop supplying.

MAP on online marketplaces

Most MAP disputes now happen on marketplaces, where many sellers list the same product and repricing software adjusts prices automatically. A few practical points:

• Know who your authorized resellers are. A MAP policy can only be enforced through your relationship with accounts you supply. Sellers who buy from a distributor or through diversion are harder to reach, so track which accounts sell where.
• Watch for repricing tools. Automated repricers can drop a listing below MAP overnight. Ask yourself whether the policy addresses automated pricing and make sure the consequences still apply.
• Check marketplace rules. Marketplaces generally do not enforce a brand's MAP policy for it. Their own brand protection tools are aimed mainly at counterfeits and intellectual property issues, not pricing.
• Control distribution first. Many brands find that tightening who they sell to, through authorized reseller agreements and limits on selling to resellers who do not meet standards, does more than MAP enforcement alone.

When to update MAP prices

Review MAP whenever you change wholesale prices, launch a new version of a product or discontinue an item. Give resellers notice of changes, commonly 30 days, so they can update listings, feeds and printed materials. When an item is discontinued, many policies lift MAP after a set date so retailers can clear remaining stock. Keep a dated archive of each MAP price list; if a dispute arises, you will need to show what price applied on what day.

Common MAP mistakes

• Asking resellers to agree to the policy. Requiring signatures or written promises can turn a unilateral policy into an agreement. Many brands simply publish and distribute the policy.
• Discussing pricing with resellers. Do not let sales reps negotiate MAP or accept promises to comply.
• Acting on competitor complaints as a group. Responding to coordinated pressure from retailers can look like a horizontal arrangement.
• Controlling the final sale price. MAP is about advertising; trying to dictate checkout prices is a different, riskier practice.
• Breaking your own MAP. Flash sales on your own site that resellers cannot match damage trust quickly.
• Vague definitions. Without clear rules on coupons, bundles and free shipping, resellers will find loopholes.
• Setting MAP too close to wholesale. If MAP leaves retailers only a 15% margin, the policy protects nobody, and good stockists will still walk away.
• Selective enforcement. Ignoring violations by your biggest account while suspending smaller ones invites complaints and weakens your position if the policy is ever challenged.

MAP, price lists and invoices

Publish MAP prices alongside your wholesale prices on a clear price list so resellers always have the current figures. Your wholesale invoices should show the agreed wholesale unit price and terms; they should not include conditions about resale prices. For broader pricing strategy, including how MAP fits with value and cost-based approaches, see how to price a product and our explainer on markup vs margin.

When you invoice your stockists, keep it simple and professional: use our free invoice generator to create wholesale invoices with no sign-up and download them as PDFs in seconds.