6/13/19

How to Ensure MAP Compliance Across Online Marketplaces

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Attorneys & Professionals

Daren Garcia, a partner and co-chair of the Vorys eControl group, authored an article for Digital Commerce 360 titled “How to Ensure MAP Compliance Across Online Marketplaces.”

The article states:

“Online sales accounted for more than half of all U.S. retail sales growth in 2018, bringing in more than $517 billion. Significantly, more than half of all online sales now occur on online marketplaces like on Amazon.com. This new ecommerce-driven world offers consumer product manufacturers numerous opportunities for growth, but it also creates significant challenges. One of the most pressing challenges facing manufacturers is how to effectively enforce Minimum Advertised Price (MAP) policies and uphold brand value across online marketplaces.

The majority of MAP enforcement difficulties arise in the context of intermediated and uncontrolled distribution. This creates opportunity for product diversion and, soon, the presence of grey-market sellers who advertise a brand’s products at rock-bottom prices. Because brands typically have no direct relationship with these low-quality resellers, it becomes virtually impossible to run an effective MAP program, and brand value begins to erode.”

To read the entire article, visit the for Digital Commerce 360 website.