MOTIVE GEAR MINIMUM ADVERTISED PRICE POLICY
Motive Gear is a leading worldwide manufacturer of quality drivetrain and aftermarket automotive products. As a manufacturer, our products enter the marketplace through a variety of traditional aftermarket authorized distributors and retailers. Motive Gear appreciates the investment that its distributors and retailers make in its products, including the promotion of the Motive Gear brand image. This process is weakened by unfair advertising practices and the advertising of Motive Gear’s products at substantial price discounts.
To help preserve Motive Gear’s image and standard for providing end users with high-quality products and good sales support, Motive Gear is adopting this Minimum Advertised Price Policy (“MAP Policy”), effective JANUARY 15, 2017. This MAP Policy is being put in place to protect Motive Gear’s distributors and retailers from unfair competition and unjust pricing structures, to provide such distributors and retailers with sufficient margins to promote the Motive Gear products, to provide their customers with the quality of service and support they desire and deserve, and to protect Motive Gear’s brand reputation for outstanding products. Motive Gear believes that certain advertising practices can be inconsistent with these objectives and tend to undermine Motive Gear’s quality image.
The MAP Policy will be available on Motive Gear’s website at www.motivegear.com/mapprice/.
Motive Gear reserves the right to amend, restate or rescind this policy.
WHAT IS THE MAP POLICY?
Motive Gear regularly provides its published list prices to its authorized distributor partners and retailers. Attached to this MAP Policy is a price sheet that identifies the Minimum Advertised Price (“MAP”) for Motive Gear products that are subject to this MAP Policy. These Motive Gear products may not be advertised or promoted at prices less than the MAP. The MAP for these products is subject to change; before you advertise, please check the listing or contact Motive Gear at (800) 934-2727 to verify the current MAP pricing.
This MAP Policy applies to the Motive Gear ® branded products identified on the attached document, as well as Motive Gear’s price sheet, only if a MAP column appears. All advertisements for these Motive Gear products that appear on or after the effective date of JANUARY 15, 2017, must comply with the MAP Policy. These prices will remain in effect until they are revised, withdrawn, or replaced by Motive Gear.
Motive Gear may occasionally discontinue part numbers, engage in promotions, or participate in the sale of overstock products or clearance inventory. In those instances, Motive Gear may adjust, append or waive the MAP Policy with respect to the part numbers affected. If it does, Motive Gear will notify dealers, distributors, and retailers of this change.
This MAP Policy will apply equally to all authorized distributors, dealers, wholesalers, jobbers, retailers, and other resellers who advertise and sell Motive Gear products. Once a purchaser obtains Motive Gear’s products for resale, it recognizes, accepts, and understands the MAP Policy. Unauthorized resellers are also subject to the MAP Policy.
WHAT IS ADVERTISING?
Type of Advertising
This MAP Policy applies to all advertisements of Motive Gear products in any and all forms of media, including, but certainly not limited to, flyers, posters, coupons, mailers, supplements, newspapers, magazines, catalogs, mail order catalogs, internet, electronic media, television, radio, and public signage. The MAP Policy will not apply to in-store promotions or advertising that is not distributed to the customer. Retailers may not engage in any form of advertising or other advertising practices that violate any federal, state, or local laws or ordinances.
Motive Gear distributors and retailers remain totally free to determine the price at which they will ultimately sell Motive Gear products. The MAP Policy will not apply to the price at which Motive Gear products are eventually sold or offered for sale to an individual customer within the dealer’s location, on a password protected website, over the telephone, or through an electronic message, such as a fax or email. Retailers may sell Motive Gear products at the price they consider appropriate, and this MAP Policy does not establish a maximum advertised price.
This MAP Policy will apply to Motive Gear products that are sold on the internet (other than on password protected websites). Pricing listed on a non-password protected internet site will be considered an “advertised price” and must adhere to the MAP Policy. These requirements do not apply to pages or levels associated with an intent to purchase. The final prices that are charged to customers may be provided by email, telephone and product purchase confirmation webpages or communications, since the MAP Policy does not limit the actual price that a reseller charges for Motive Gear products. Effectively, resellers may show prices below the MAP at the time the consumer purchases a Motive Gear product. Auction sites, and offers made to buy it now proposals, advertising immediate purchases at a price below MAP, will be in violation of the MAP Policy.
This MAP Policy does not prohibit resellers from bundling or packaging Motive Gear product(s) with other non-Motive Gear products, however, if the bundle or package includes only Motive Gear products, it cannot be advertised lower than the MAP of the individual Motive Gear product(s) combined.
This MAP Policy is not applicable to any in-store advertising that is not distributed to a customer or published outside of any store.
This MAP Policy does not allow resellers to advertise a coupon, discount, rebate, or incentive on Motive Gear product(s) that has the effect of immediately reducing the advertised price of the Motive Gear product below the MAP.
WHY SHOULD I FOLLOW THE MAP POLICY?
Motive Gear may monitor the advertised price of dealers, distributors, or retailers, either directly or through the use of third parties. Motive Gear has sole and final responsibility for determining whether this MAP Policy has been violated and enforcing this MAP Policy. Motive Gear is not soliciting and does not desire complaints from any person or entity concerning advertising practices of distributors or retailers. Motive Gear reserves the right to individually impose penalties at its sole discretion. It is Motive Gear’s policy not to do business with those who continue to violate the MAP Policy.
If Motive Gear determines that there has been a violation of the MAP Policy, Motive Gear may, in its discretion, take immediate action. This action may include, but is not limited to working with the reseller to bring them into compliance, instantly terminating all orders from the reseller, or refusing to accept any new orders from that reseller indefinitely or for a certain period of time. Motive Gear may also choose to rescind any and all promotional or co-op advertising support to the reseller, or terminating its business relationship with any account that continuously violates the MAP Policy.
Motive Gear will not engage in any discussion as to whether or not this MAP Policy has been violated nor will Motive Gear report as to whether any action has been or will be taken as a result of a MAP Policy violation. Motive Gear’s distributors are accountable for the actions of jobbers, retailers, and other customers that purchase Motive Gear products from such distributor and advertise it below the MAP, so distributors should advise their customers of the MAP Policy. Motive Gear reserves the right to levy penalties on distributors that sell Motive Gear products to jobbers, retailers, or customers who violate the MAP Policy.
This MAP Policy is not a contract between Motive Gear and any reseller, and nothing in the MAP Policy should be interpreted to be such a contract. Motive Gear will not ask for, accept, or discuss any assurance of compliance or agreement from a reseller about the MAP Policy. Motive Gear representatives or employees do not have the authority to modify the MAP Policy or to discuss retail pricing practices with any reseller. Motive Gear disclaims any contrary comments.
The terms of this MAP Policy are confidential and may not be disclosed to other parties.