MAP (Minimum Advertised Price)
The policy that keeps one retailer from discounting your product and dragging your whole brand down with it. What MAP is, how it is enforced, and why it is legal.
MAP stands for minimum advertised price, the lowest price a retailer is allowed to advertise your product for. It is one of the most important protections a brand has once its product is in multiple stores, because it stops a single discounter from advertising a low price that forces every other retailer, and your own site, to match it.
What MAP controls, and what it does not
MAP governs the advertised price, not the sold price. A retailer can still sell your product for whatever it wants at checkout. What a MAP policy prevents is the retailer publicly advertising a price below your set floor, in ads, on product pages, in email. That distinction is what keeps MAP legal.
Compare it to MSRP: MSRP is the price you suggest the product sells for, and it is not enforceable. MAP is the advertised floor, and it is enforceable through a policy.
Why brands need one
- It protects your pricing everywhere. Without MAP, one retailer advertising a deep discount drags the whole market down and trains customers to wait for the low price.
- It protects your retail partners. A store is far more willing to stock you if it knows a competitor cannot undercut its advertised price on the same product.
- It protects your own DTC channel. MAP keeps your website from looking overpriced next to a discounter.
How it is enforced (and why it is legal)
A brand typically issues a unilateral MAP policy: it states the advertised floor and the consequences for violating it, usually cutting off the retailer from future orders. Because the brand sets it independently and does not negotiate a binding price agreement with each retailer, a properly written unilateral policy is generally lawful in the US. Enforcement means monitoring advertised prices and stopping shipments to retailers who break the policy, not suing them into compliance.
Frequently Asked Questions
What is MAP pricing?
MAP, or minimum advertised price, is the lowest price a retailer is permitted to advertise a product for. It is set by the brand through a MAP policy. It controls the advertised price, not the final sale price, and it exists to keep one retailer’s discounting from dragging down a brand’s pricing across every store.
Is a MAP policy legal?
Generally yes in the US, when it is a unilateral policy. The brand states the advertised floor and the consequence for breaking it (typically losing the ability to buy more product), without negotiating a binding price agreement with each retailer. Because MAP restricts advertising rather than the actual sale price, a properly structured policy is lawful.
What is the difference between MAP and MSRP?
MSRP is the manufacturer’s suggested retail price, a non-binding suggestion for what the product should sell for. MAP is the minimum a retailer may advertise, and it is enforceable through a policy. A store can sell below MSRP freely, but it cannot advertise below MAP without risking its supply.
Sources
- Wikipedia, “Minimum advertised price”. Definition and the distinction between advertised and sale price.
- Wikipedia, “Resale price maintenance”. The legal framework, including unilateral pricing policies, that makes MAP enforceable.