- Minimum Advertised Price (MAP)
- The lowest price at which a reseller is permitted to publicly advertise a manufacturer's product, regardless of the actual transaction price.
- Advertised Price
- Any publicly visible price displayed in online listings, print ads, email promotions, or any other medium accessible to consumers before purchase.
- Reseller
- Any retailer, distributor, dealer, or third-party seller authorized to purchase and resell the manufacturer's products.
- Price Erosion
- A gradual decline in the retail price of a product across the market, typically triggered by competitive undercutting among resellers.
- Authorized Reseller
- A reseller that has been formally approved by the brand or manufacturer to carry and advertise its products under defined terms.
- Unilateral Policy
- A pricing policy issued by a manufacturer as a standalone business decision β not a negotiated agreement with resellers β which is the legally preferred structure for MAP policies in the US.
- MAP Violation
- Any instance where an authorized reseller advertises a product below the MAP price set by the manufacturer.
- Point-of-Sale Exception
- A carve-out that permits a reseller to complete a transaction below MAP after a consumer has added the item to a cart or reached the checkout screen, since the price is no longer publicly advertised.
- Price Monitoring
- The systematic process of tracking reseller advertised prices β typically through automated crawling tools β to identify MAP violations.
- Channel Conflict
- Tension between different resellers in a brand's distribution network caused by inconsistent pricing, terms, or market coverage.