Issue link: https://www.e-digitaleditions.com/i/42495
& 10 FEDA News & Views The Logic, the Risk & the Arguments For & Against MRP MAP "I Terms You Should Know Minimum Advertised Price (MAP) Policy – A supplier's policy that suggests or requires that its resellers advertise some or all of its products at or above a specified price. These policies do not restrict the price at which the reseller may sell the product. Colgate Doctrine – Named for the U.S. Supreme Court case, U.S. v. Colgate & Co. (1919), ruling that a company generally may unilaterally exercise its own independent discretion as to the parties with whom it will deal; and may announce in advance the circumstances under which the company will refuse to sell. As an example, a Minimum Resale Price (MRP) policy is one whereby a supplier, without requesting or reaching an agreement with its customer/reseller, specifies a minimum or exact resale price for its products and announces it will cease further sales to a reseller that violates the policy. Leegin Case– A 2007 U.S. Supreme Court case (Leegin Creative Products, Inc. v. PSKS, Inc.) ruling that the legality under the federal antitrust laws of a vertical minimum resale price agreement, between a supplier and its reseller, will be judged on a case-by-case basis under the more lenient rule of reason standard, to determine if it is an unreasonable restraint on trade. Intrabrand vs. Interbrand Competition – Intrabrand competition occurs where dealers compete for the resale of the same supplier's product. Interbrand competition occurs where dealers compete for the resale of several suppliers' products. For example, Ford dealers engage in intrabrand competition, while Ford and GM dealers engage in interbrand competition. A change in a supplier's distribution policies may reduce intrabrand competition and stimulate inter- brand competition. According to the U.S. Supreme Court, interbrand competition is the primary concern of antitrust law. By Stacy Ward, Managing Editor fedastacy@verizon.net 've got a great quote from a deal- er," says Hatco Corp.'s Vice President of Sales Mike Whiteley, laying the groundwork for an argument he's made time and time again in defense of his company's Minimum Resale Price (MRP) policy. Then comes the quote, which is just about as polar- izing as the implication behind a strike- through price on a competitor's site: "Mike," said the dealer, "I think it's terri- ble that we have to depend on the man- ufacturer to tell us that it's OK for us to make money. You're basically dictating what price we sell at." continued on page 12