Polarmade Inc., a Canadian corporation based in the Province of Quebec, and home to the Polarmade and SnowPeeler brands (“Polarmade”), has adopted the following Minimum Advertised Price Policy (“MAP Policy”) for all Polarmade products, except as designated by Polarmade from time to time in writing or as posted on a website (“Covered Products”). Polarmade’s goal in establishing this policy is to avoid degradation of, or damage to, the premium quality and image of its Covered Products and to the trademarks, other marks, brands, or trade names under which its Covered Products are sold. Polarmade intends to sell these Covered Products only to Distributors/Resellers that do not advertise Covered Products below the Minimum Advertised Price set forth in this policy. Polarmade may choose to enforce this policy through action up to and including termination of a Distributor/Reseller or other authorized distributor that advertises any Covered Product below the stated Minimum Advertised Price as set forth below. This MAP Policy will be applied and enforced as follows:
- The minimum advertised price (“MAP”) for each Covered Product shall be the price designated as the MAP on the current Polarmade price list as issued by Polarmade from time to time, or, if no MAP is listed for any Covered Product, the MAP will be the Manufacturer’s Suggested Retail Price (“MSRP”) for that Covered Product minus 20% of that MSRP. Current price lists may be obtained by contacting a Polarmade sales representative. The MAP for one or more products may be amended from time to time and may be suspended periodically for national, regional and/or seasonal promotions sponsored by Polarmade. Changes to the MAPs will be posted on the Polarmade website designated by Polarmade and will supersede the MAPs on the price lists. It is the responsibility of distributors of Polarmade Covered Products to monitor the designated Polarmade website for updates.
- This MAP Policy applies to all forms of print and electronic media, direct mail, and audio and video communications. Examples of communications to which the MAP Policy applies are set forth in the linked MAP Policy FAQs.
- Polarmade considers any price advertised below the MAP a violation of its MAP Policy. For example, if a product with a MSRP of $174.95 is advertised at or below $139.95, this is a violation of the MAP Policy.
- The MAP Policy only applies to advertised prices of Covered Products, and not the prices at which Covered Products are actually sold. The dealer is free to resell Covered Products at any price of its choice.
- Polarmade reserves the right to modify, suspend, or cancel the MAP Policy, or modify any or all MAPs at any time. Polarmade will provide notice of any such modifications, suspension, or cancellations on the designated Polarmade website. It is the responsibility of each member of Polarmade’s distribution network to monitor the Polarmade designated website for updates.
- If a dealer advertises prices below those required by this MAP Policy, Polarmade shall take appropriate action to enforce this MAP Policy, including but not limited to one or more of the following actions:
- Notify the dealer of the non-compliant advertisement with a reminder of Polarmade’s MAP Policy on Covered Products.
- Suspend the dealer’s right to sell the Polarmade Covered Product in question for a period (e.g., thirty (30), forty-five (45) or ninety (90) days) depending on the breadth and severity of the MAP Policy violation, commencing from the date of notice from Polarmade;
- Suspend the dealer’s right to sell the entire Polarmade series designation in question (e.g., Brilliance, or Karat, etc.) for a period time (e.g., thirty (30), forty-five (45) or ninety (90) days) depending on the breadth and severity of the MAP Policy violation, commencing from the date of notice from Polarmade;
- Suspend the dealer’s right to sell the entire Polarmade product portfolio for a period of time (e.g., thirty (30), forty-five (45) or ninety (90) days) depending on the breadth and severity of the MAP Policy violation, commencing from the date of notice from Polarmade;
- Suspend the dealer’s right to sell the entire Polarmade product portfolio for a period of not less than one (1) year, commencing from the date of notice from Polarmade; and/or
- Terminate the Distributor/Reseller Agreement or other relevant agreement between Polarmade and the member of the distribution network who has violated this MAP Policy.
- Polarmade will make all decisions concerning compliance with and enforcement of this MAP Policy unilaterally. This MAP Policy is a unilateral declaration of policy by Polarmade and does not reflect or constitute an agreement between Polarmade and any Distributor/Reseller, any other authorized distributor, or any other person or entity, and by issuing this policy Polarmade is not seeking any such agreement.
POLARMADE MAP POLICY FAQS
Q: What are examples of communications to which the MAP Policy applies?
A: The MAP Policy applies to all catalogs, coupons, coupon codes, promo codes, flyers, inserts, magazines, mail order catalogs, mailers, postcards, newsletters, newspapers, posters, billboards, television and radio advertising, internet-based advertising including without limitation, newsletters, e-mail solicitations, call for newsgroups, Internet “lists,” website advertising, Internet auctions, and electronic billboards.
Q: Do dealers need to sign the MAP Policy indicating that they agree with its provisions?
A: No. The MAP Policy is not an agreement between Polarmade and the dealer. It is a policy that Polarmade is unilaterally implementing for all members of the Polarmade distribution network to maintain the integrity of Polarmade products. The purpose of this document is to inform all members of the Polarmade distribution network that there are certain consequences for deviating from the published MAPs of Covered Products.
Q: Does the MAP Policy affect selling prices?
A: No. Dealers are free to resell Covered Products at any price of their choice. The MAP Policy only provides requirements relating to advertised prices for Covered Products.
Q: Where can I obtain information on suspensions or modifications to the MAPs, or for updates to this MAP Policy?
A: Any temporary suspensions or modifications of the MAPs, as well as any modifications to the MAP Policy, will be posted on the designated Polarmade page. Any member of the Polarmade distribution network may also contact their Polarmade sales representative. No individual notices will be sent with respect to MAP suspensions or modifications, or changes to the MAP Policy.
Q: How are “drop in cart” or “call for pricing” advertisements treated by the MAP Policy?
A: 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 MAP price violate the MAP Policy. Examples of such unauthorized advertisements include “drop in cart” pricing, “add to cart” pricing, “click to see” pricing, and “call for” 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.”
Q: What are examples of advertising that does not violate the MAP Policy:
A: Examples include:
- Advertising discounts where the resulting price is at least as high as the MAP for the Covered Product.
- Advertising that does not state a price directly or by reasonable implication.
- Advertising that promises to “meet or beat” a competitor’s price.
- Advertising that offers free or low interest financing, deferred payment, free shipping, free installation, or some other free service for a Covered Product, provided that the advertisement does not subtract the value of the offer or free service from the advertised price of the Covered Product.
- Advertising for Covered Products that are clearly designated as “refurbished,” “demo” or “used.”
- Advertising that includes an offer of a gift card when a Covered Product is purchased and that provides for a future discount on subsequent purchases from the dealer.
- Advertising of a blanket price reduction, applicable store-wide, so long as no Covered Product is shown in the advertisement with the discounted price.