Last time we looked at how Forest River has requested that their dealers strictly follow their Minimum Advertised Price, MAP, policy. This places an artificial floor on the bottom line price that any dealer can advertise on the internet. This in effect equalizes all the dealers web pricing, hiding the lowest available price from the consumer. This approach is backwards looking and counter to the environment that internet promotes. The state of Maryland passed a law that takes effect October 1st prohibiting MAP pricing policy. Expect more states to follow their lead...
The Wall St Journal
Apr 28, 2009
In a move that could lead to lower prices for consumers across the country, Maryland has passed a law that prohibits manufacturers from requiring retailers to charge minimum prices for their goods.
The law, which takes effect Oct. 1, takes aim at agreements that many manufacturers have been forcing on retailers, requiring them to charge minimum prices on certain products. The practice has surged since a controversial 2007 U.S. Supreme Court ruling that no longer makes such agreements automatically illegal under federal antitrust law.
Under the new state law, retailers doing business in Maryland -- as well as state officials -- can sue manufacturers that impose minimum-pricing agreements. The law also covers transactions in which consumers in Maryland buy goods on the Internet, even when the retailer is based out of state. That could potentially affect manufacturers throughout the country.