Internet Minimum Advertised Price Policy (IMAP or MAP) refers to a policy that sets the minimum advertised price of a manufacturer’s goods. Because of the ease of online distribution, policing the actions of every online retailer can be difficult. An IMAP sets the standard for all retailers to follow.
Some manufacturers wish to implement an IMAP to ensure that the quality of their products matches the price. For example, a high-end power tool company may not want its products grouped together with products of a lesser quality, and lesser price. By setting a higher minimum advertised price, the manufacturer can retain its unique space in a crowded market.
In general, antitrust laws exist to prevent collusion in the market place, including what is typically referred to as price fixing. However, the United States Supreme Court has upheld the validity of IMAPs.
This Supreme Court ruling, Leegin Creative Leather Products, Inc v PSKS, Inc, 551 US 877 (2007), ruled that IMAPs are not per se invalid under antitrust law, but instead, should be analyzed under the rule of reason. The “rule of reason” is a theory in antitrust law that, in general, judges a monopoly or restraint by reviewing the factual setting behind the restraint. As a result, IMAPs can be fact specific (including industry, product, or service) and should be drafted by experienced e-commerce attorneys.
There is one major distinction to be made. IMAPs cannot require the retailer to sell the product at a certain price. Instead, IMAPs can require the retailer to advertise the product no lower than a certain minimum price. Although retailers may be able to sell the product at a lower price by requiring the consumer take some action (call, email, add to cart, etc).
If your e-commerce business has received an IMAP and has questions, or if you are a manufacturer wishing to implement an IMAP, our e-commerce attorneys can help. Simply contact our e-commerce attorneys by completing the contact form on this page or call 855-473-8474.
In May 2025, as part of a settlement of litigation involving college football, a new entity was created called the College Sports Commission (“CSC” or “Commission”). See news media reports here and here. Among many other purposes, the CSC will monitor and approve name, image, and likeness (“NIL”) agreements for college athletes. As the term […]
Read more about Fairness Factors For Your College NIL Agreement
Trademarks are words, designs, symbols, logos, and other things that are used/associated with goods or services that identify the specific commercial source of the goods/services. COCA-COLA, APPLE, and GUCCI are just a few famous examples. If COCA-COLA is on the bottle, consumers know what to expect from the beverage in the bottle. The same for […]
Read more about Is a “Fanciful” Trademark the Best Type of Trademark?
Getting an endorsement deal as a social media influencer may be a seminal event financially and for the progress of your career. However, the question always has to be asked whether your endorsement deal is fair. In other words, are you getting paid what you are worth? There are a number of factors that can […]
Read more about Is Your Social Media Influencer Endorsement Deal Fair?