Minimum Advertising Price (MAP) Policy, effective January 1, 2017
KALORIK’s success is dependent in large part upon customer loyalty and high brand name value. Our customer loyalty and brand name value are maximized when our high quality products are marketed, sold and serviced by knowledgeable sales people with the resources to provide quality service. KALORIK believes that retailers who advertise products at discounted prices often fail to provide adequate service both before and after the sale. This results in reduced customer satisfaction and brand name value, impedes the ability of quality retailers to sell KALORIK’s products, and harms KALORIK’s ability to compete in the marketplace.
In recognition that the success of KALORIK relies on the success of our authorized sellers, we created this plan to protect their ability to provide the highest level of service without having to worry about those unauthorized retailers who may gain a “free ride” from their efforts.
Policy Statement a. KALORIK will maintain a list of its high quality products (the "Products"), which may change periodically. See Exhibit A attached to this Policy.
b. KALORIK will assign to each of the Products a Suggested Retail Price and a Minimum Advertised Price ("MAP"). See Exhibit A attached to this Policy. The MAP reflects KALORIK’s unilateral determination that to permit retailers to advertise the sale of Products below such price will erode KALORIK’s quality distribution system and superior product image, and will encourage "free riding" on the service and investment of other KALORIK retailers. Therefore, all advertisements for the Products may not offer the Products for sale for less than the Minimum Advertised Price.
c. It is not the purpose or intent of this Policy to restrict, coerce, or force a retailer to charge a particular price for any KALORIK’s product. Resellers are free to set the actual resale price of any product as long as it is at or above MAP price given the most recent publication of the price list.
The Policy is not a contract or agreement, or an offer to form a contract or agreement. KALORIK does not ask for, and will not accept, any agreement about an account's compliance with this Policy. This Policy simply describes the manner in which KALORIK chooses, in its sole discretion, to sell its products.
d. The MAP Policy applies to advertised prices, not the price at which MAP Products are actually sold or offered for sale to an individual in-store or over the telephone.
e. This MAP policy shall apply to all forms of advertising, including but not limited to:
• Print ads (inserts, magazines, newspapers, etc.)
• Broadcast (radio and TV)
• Direct mailers, including email
• Newsletters (whether in print or electronic form, and whether specifically requested or not)
• Internet displays, including banner ads, broadcast emails, and automatic emailed price lists, destination pages and third-party sites
This MAP policy shall not apply to:
• Dollar off, or % off entire store wide, or department wide promotions
• In-store displays, banners and price markings, provided that they are not externally visible
• Direct quotations to customers
f. Retailers who advertise the "Products" for sale at a price below the Minimum Advertised Price, or at a "call or email for price," shall be deemed to have violated this Policy.
g. Retailers who advertise giveaways or discounts on merchandise in connection with the purchase of a Product shall be deemed to have violated this Policy if the price of the Product, minus the market value of the advertised give-away or discount, is less than the Minimum Advertised Price.
h. Any statements in a retailer's advertising that undermines or attempts to undermine this Policy, including any direct statements about KALORIK’s MAP policy, shall be deemed to be a violation of this Policy.
a. KALORIK always reserves the right to choose those retail accounts with which it will do business and the right to accept or reject any purchase order from any account any time.
b. KALORIK representatives are strictly prohibited from discussing this Policy with any account. KALORIK representatives are strictly prohibited from seeking or accepting any assurance of account compliance with this Policy.
c. KALORIK will not discuss the business dealings of any retail account with any other account. Therefore, KALORIK does not seek any complaints or comments from its accounts about the advertising practices of any other accounts.
d. KALORIK sales representatives are not permitted to discuss or influence everyday pricing policies with retailers. This policy addresses advertised pricing only, and retailers must make their own decisions regarding what they will actually charge for the Products. Sales representatives have been instructed to limit their activities with respect to this Advertising Price Policy to distributing a copy of the Policy to a retailer and informing the retailer of the current list of the Products and KALORIK’s Suggested Retail Prices and Minimum Advertised Prices for the Products.
e. KALORIK will issue a new price list by the end of the first quarter, based on a calendar year. Pricing must be updated immediately upon receipt.
KALORIK always reserves the right to choose those retail accounts with which it will do business and the right to accept or reject any purchase order from any account any time.
• If a Seller with multiple store locations violates this MAP Policy at any one store location or on any associated website, KALORIK will consider this to be a violation by the Seller.
• KALORIK reserves the right to cancel any pending orders, restrict future orders, or suspend Seller’s accounts if KALORIK reasonably believes:
i. a Seller has violated the provisions of this policy; or
ii. a Seller intends to violate this policy.
• KALORIK monitors the advertised prices of our Sellers either directly or via 3rd party. Sellers are expected to provide reasonable cooperation. Any failure to cooperate will be considered a violation of the MAP Policy.
• KALORIK intends to act in its sole interest, based on its own decision, in addressing violations of this Policy.
Resolution of MAP Violations
The following steps will be followed in order to resolve MAP violations:
• First Violation: Seller will be notified in writing of the violation, and have 48 hours to adjust the pricing or remove the item in question.
• Violation to be noted internally.
• After 30 days of compliance, violation will be cleared.
• Second Violation: KALORIK will require the product in question be suspended from the Seller’s website and account to be placed on 30-day hold.
• After 30 days, hold will be lifted.
• Third Violation: KALORIK will require the entire line be suspended from the Seller’s website and account to be placed on 90-day hold.
• After the 90-day duration, KALORIK to determine if Seller to be reinstated.