Dealer Program Policies

II. Additional Operational Policies

E. Minimum Advertised Price (MAP) Policy - ADI Exclusive Brands

ADI has established a unilateral policy regarding the minimum advertised price (MAP) of Exclusive Brand Authorized Products marketed, promoted, or sold by Dealers within the Territory. ADI may, in its discretion, change its MAP Policy from time to time by adding or removing eligible Products, changing MAP pricing, permitting blackout dates and special events, and revising terms, among other things.

POLICY OVERVIEW

In recognition of the investment in time and resources required for our dealers to provide the level of customer service and product knowledge expected from our customers, ADI is committed to enforcing policies which allow our dealers to maintain high profit margins through the sale of the Authorized Products. To protect these procompetitive benefits, the Company has unilaterally established a MAP Policy. Pursuant to this policy, the Company reserves the right to revoke Authorized Dealer status, withhold Authorized Dealer benefits, place Dealer on Probationary Status (as described in Section I of the Dealer Program Policies), and discontinue business with dealers who violate the MAP for Authorized Products.

RESALE PRICE

This MAP Policy does not mean that ADI is setting the Dealer‘s actual resale price. ADI’s resellers set resale prices at which they sell the Products at their sole discretion. The MAP Policy only relates to advertised prices.

PRODUCTS SUBJECT TO MAP POLICY

Unless otherwise provided within this Map Policy or the Dealer Program Policies, all Authorized Products are subject to this MAP Policy, and the minimum price advertised price is the MSRP price provided by ADI for each of the Authorized Products. The MAP Policy does not require Dealers to advertise products at that price, but if Dealers advertise them, they should advertise them above or at that price. Additional products may be added to, or removed from the MAP Policy by ADI at any time.

ADVERTISING MEDIA TO WHICH MAP APPLIES

The MAP Policy applies to all advertising including, but not limited to:

Catalogs, flyers, newsletters, print ads (inserts, magazines, catalogs, newspapers, etc.), and direct mailers, including email, text, and faxes advertising prices, and in-store displays, banners, and end caps, as well as internet banner ads, broadcast emails, destination pages, and other internet pricing due to the public nature of the internet, including authorized third party reseller sites.

The MAP Policy does not apply to the following:

  • Normal, everyday in-store price markings (e.g., price tags on products, prices listed on shelves)
  • Below-MAP price resulting from promotion or end-user rebates offered by ADI. Please indicate “manufacturer rebate” in the ad
  • Dealer-wide promotions relating to all products may be advertised in a title or headline format at the top of a page or ad. However, individual ADI Authorized Products within the body of the ad must continue to meet MAP.

Note: the following advertising does not constitute advertised pricing for purposes of the MAP Policy:

  • Advertising of the product without any reference to price
  • Advertising that promises to match or beat prices from competitors (without reference to a specific price)

ADDITIONAL GUIDELINES

  • ADI’s MAP policy does not in any way limit the ability of any dealer to advertise that “they have the lowest prices” or, they “will meet or beat any competitor’s price”, or phrases of similar import as long as the price advertised or listed for the products is not less than MAP
  • Recertified or refurbished products may be advertised, but must be clearly identified as such (and apply any MAP provided).
  • If a Dealer with multiple store locations violates this MAP Policy at any one store location, or on any associated website, then ADI will consider this to be a violation by the Dealer generally.

CONSEQUENCES OF NON-COMPLIANCE WITH THE MAP POLICY

Non-compliance with the ADI MAP Policy will result in the following:

  • First incident of non-compliance: written warning.
  • Second or subsequent incident of non-compliance or not remediating earlier instances: Probationary Status actions listed in Section I of the Dealer Program Policies, or if ADI believes, in its sole discretion, that the non-compliance was done with knowledge of the earlier violations, Termination of the Exclusive Brand Dealer authorization.

QUESTIONS & COMMUNICATIONS REGARDING MAP POLICY

The ADI Legal team, or their delegates, are the only people authorized by ADI to communicate MAP Policy updates, changes or decisions. No other ADI representative is authorized to confirm compliance with this policy, discuss it, or amend it.

Send Inquiries to:

ADI Customer Management
Attention: Legal
275 Old Country Road
Melville, NY 11747

Version: January 16, 2024