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US/Canada (MAP) Minimum Advertised Price Policy
Introduction
Tire Mart, Inc., dba Pit Bull Tires (hereinafter “Pit Bull”) is a leading provider of tires & wheels for various applications.
We recognize that our high-quality dealers invest time and resources to deliver an extraordinary customer experience through knowledgeable staff and compelling vendor presentation. To support our resellers’ efforts, Pit Bull wishes to establish policies that allow resellers to earn the profits necessary to maintain the high level of customer excellence people have come to expect from Pit Bull dealers.
To protect the investment of our high-quality dealers and Pit Bull’s brand reputation, we have unilaterally adopted a MINIMUM ADVERTISED PRICE POLICY (“MAP Policy”). Pit Bull established this MAP Policy due to the fact that reseller advertising and sales practices that promote Pit Bull products primarily on the basis of price could be detrimental to resellers’ service and support efforts and Pit Bull’s competitive position. Such activities can be harmful to Pit Bull’s brand, reputation and competitiveness, and allow some resellers to take advantage of the service and support efforts of others. Pit Bull believes that these practices are unfair and thus discourages such efforts.
Pit Bull, in its unilateral discretion, may not do business with any reseller, as to the products covered by this MAP Policy, if that reseller intentionally advertises any MAP Product below its MAP price. Pit Bull is confident that this program will strengthen its competitiveness and benefit all of its resellers.
Official Policy and Guidelines
Additional guidelines related to the US/Canada MAP Policy are as follows:
1. Pit Bull reserves the right, in its unilateral discretion, to take other action with respect to any reseller that violates this MAP Policy.
2. The MAP Policy will be enforced by Pit Bull in its sole discretion. Dealers will be warned for first-time violation, and if not corrected, may be subject to termination based on Pit Bull’s sole unilateral discretion.
3. Pit Bull recognizes that any authorized Pit Bull account can make its own decisions to advertise and sell any Pit Bull product at any price it chooses without consulting or advising Pit Bull. Pit Bull similarly has the right to make its own independent decision regarding product allocations and reseller participation as a member of the Pit Bull Authorized Reseller Program – at any time.
4. Pit Bull will maintain an updated “MAP Products” list of those products that will fall under this MAP Policy. Pit Bull reserves the right to update or modify this list at any time. All items listed on Pit Bull Jobber Lists & Master Price Lists are automatically considered included under the MAP policy at each product lines’ respective MAP On Factor level & MAP Price level as indicated by Pit Bull, and as part of the MAP Products Price listing.
5. All Products listed will have a MAP price level determined by a MAP On Factor or the MAP PRICE as listed on a Price list MAP Column, provided by Pit Bull. Listing a price other than the MAP price next to the featured MAP Product in any advertising will be viewed as a violation of this MAP Policy. This MAP Policy applies to all advertisement of MAP Products in any and all media, including, without limitation, flyers, posters, coupons, mailers, inserts, newspapers, magazines catalogs, mail order catalogs, internet or similar electronic media including websites, forums, email newsletters, email solicitations, television, radio, and public signage. Such website features as “Click for price”, automated “bounce – back” pricing e-mails, pre-formatted e-mail responses, forms, automatic price display for any items prior to being placed in a customer’s shopping cart, and other similar features are considered to be communications initiated by the reseller (rather than by the customer) and this constitutes “advertising” under this MAP Policy. This MAP Policy also applies to any activity which Pit Bull determines, in its sole discretion, is designed or intended to circumvent the intent of this MAP Policy, such as solicitations for ‘group purchases’ and the like.
6. It shall NOT be a violation of this MAP Policy to advertise in general that the reseller has “the lowest prices” or will match or beat its competitors’ prices, or to use similar phrases; so long as the reseller does not include any advertised price below MAP and otherwise complies with this MAP Policy.
7. From time to time, Pit Bull may permit resellers to advertise MAP Products at prices lower than the MAP retail price. In such events, Pit Bull reserves the right to modify or suspend the MAP retail price with respect to the affected products for a specified period of time by providing advance notice to all resellers of such changes.
8. From time to time Pit Bull may offer a direct manufacturer’s discount, coupon, gift card, special, incentive, promotion and/or rebate to customers. In such events, it shall not be a violation of this MAP Policy for Pit Bull to advertise the availability of the manufacturer’s discount, coupon, gift card, special, incentive, promotion and/or rebate.
9. Where Pit Bull products are bundled with or sold as part of a package that includes other products, it shall be a violation of this MAP Policy to sell or advertise the bundle (or package) at a price that violates the letter or spirit of the MAP Policy. It shall be a violation of this MAP Policy if products are bundled with or sold as part of a package that includes products not pre-approved by Pit Bull.
10. It shall be a violation of this MAP Policy to include in any advertising for Pit Bull Products any additional discount, coupon, gift card, or incentive (whether in the form of a special event, promotion, term of doing business or otherwise) that translates into an immediate price reduction, where the cumulative effect would be to reduce the advertised price of any MAP Product below MAP. Advertising that includes an additional discount, coupon, gift card, points, or any other incentive for future purchases (regardless of whether the future purchases is of a Pit Bull product) shall be evaluated under the same guidelines as described in Section 9 regarding product bundling. For example, a gift card redeemable on a future purchase would be considered an “other product” under Section 9. This Section 10 shall not apply to any manufacturer’s rebate from Pit Bull on Pit Bull Products or its partners’ products.
11. It shall NOT be a violation of this MAP Policy to advertise that a customer may ”call for price” or “email for price”, or to use similar language, specifically with respect to Pit Bull Products, so long as no price is listed.
12. It shall NOT be a violation of this MAP Policy to advertise free shipping.
13. If a reseller with multiple store locations violates this MAP Policy at any particular store location, then Pit Bull will consider this to be a violation by all of the reseller’s locations.
14. Although resellers remain free to establish their own resale prices, Pit Bull reserves the right to cancel all orders and indefinitely refuse to accept any new orders from any resellers following Pit Bull’s verification that such reseller has advertised any MAP Products at a net retail sales price less that the then-current MAP retail price established by Pit Bull, or if reseller has violated this policy in any other way.
15. Pit Bull may alter, amend or suspend all or part of it’s MAP policy unilaterally and without notice. Pit Bull may alter, amend or suspend this MAP policy on a case by case and customer by customer basis unilaterally and without notice.
16 . Pit Bull’s sales representatives are NOT permitted to discuss this Policy or make any agreements or assurances with respect to Pit Bull’s Policy regarding reseller advertising or pricing. This also includes any consumer program or promotion that affects the below-listed MAP Products.
10/10/2014