Effective February 6, 2017
Schaub has determined that in order to better compete against existing competitors it must exercise a greater degree of control over the distribution of its products. Therefore, all sales of Schaub products will be subject to this Policy. This Policy has been unilaterally adopted and will be enforced strictly and uniformly.
Although resellers remain free to establish their own resale prices, to the extent that any customer elects to advertise products of Schaub in any manner, that is in print, in electronic media, on its website, etc., and provides price information for such products, that price information must be no less than List Price less 20%, this is the Minimum Advertised Price (MAP). Advertisements and offers to sell that do not include a particular price, but require further action that implies a price that is lower than the Minimum Advertised Price, violate the MAP Policy. Examples of such unauthorized advertisements include “drop in cart” pricing, “add to cart” pricing, “click to see” pricing, and discount coupon pricing. Also prohibited are advertisements that indicate that discounts may be available when a customer takes specific action that goes beyond buying the product, such as “special price option” or “name your price.”
To assure fair business practices, we will strictly enforce this policy. Violations of this MAP Policy will include termination of our business relationship with a customer. On the first offense there will be a written notice counseling any customer that disregards this policy. Any customer who violates the policy a second time, within one year of receiving a written notice of a first violation, will be terminated.
Schaub will not discuss any conditions of acceptance related to this Policy, as it is non-negotiable and will not be altered for any dealer. In addition, Schaub neither solicits, nor will it accept, any assurance of compliance with this Policy. Nothing in this Policy shall constitute an agreement between Schaub and any reseller that the reseller will comply with this Policy.
Q: Why have you changed your MAP Policy?
A: To more clearly define our MAP Policy.
Q: Are you monitoring MAP Policy compliance? If so, how?
A: Yes. We use a variety of internal and external monitoring methods.
Q: To whom should I report MAP Policy violations?
A: Violations should be reported in writing to Schaub’s Vice President of Sales and Marketing.
Q: How are MAP Policy violations handled?
A: An investigation will be done to determine if a violation has occurred. If it is determined that a violation has occurred, we will enforce the terms as stated in our MAP Policy.
Q: Will I be notified of the action taken against the company I report as being in violation of the MAP Policy?
A: Our practice is not to notify the person(s) that reported the violation.
Q: XYZ Company continues to advertise at prices below List less 20%. Why haven’t you stopped them?
A: There may be legal reasons why we cannot enforce our MAP Policy with those sellers. For example, they may not be a Schaub customer.