RIVCO Industries Minimum Advertised Price Policy
As a leading innovator of motorcycle and UTV accessories, RIVCO is proud of its role in the industry. We recognize that our dealers invest time and resources to deliver an extraordinary customer experience through knowledgeable staff and compelling vendor presentation. To support our resellers’ efforts, RIVCO 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 the RIVCO family of dealers.
RIVCO has established this MINIMUM ADVERTISED PRICE POLICY (“MAP Policy”) primarily to protect the interests of our resellers and create consistency amongst us.
ENFORCEMENT
RIVCO has a two strike policy on MAP violations. The first strike results in a warning email coupled with a 30-day unauthorized period whereby the Authorized Reseller will not be eligible to purchase RIVCO products either directly or from RIVCO’s distribution partners. The second strike will result in the permanent removal of the reseller from the RIVCO Authorized Reseller program and instructions to RIVCO’s distribution partners to permanently suspend sales of RIVCO products to that reseller. In the event of any MAP violation, the Authorized Reseller will forfeit registered deal discounts and any other back-end rebates or other incentives for the quarter in which the violation occurs.
RIVCO, in its unilateral discretion, will not do business with any reseller and will instruct its distributor(s) not to 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. RIVCO is confident that this program will strengthen its competitiveness and benefit all of its resellers.
Official Policy and Additional Guidelines related to this MAP Policy are as follows:
1. RIVCO 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 RIVCO in its sole discretion.
3. RIVCO recognizes that any authorized RIVCO account can make its own decisions to advertise and sell any RIVCO product at any price it chooses without consulting or advising RIVCO. RIVCO similarly has the right to make its own independent decision regarding product allocations and reseller participation as a member of the RIVCO Authorized Reseller Program at any time.
4. All Products listed will have a MAP retail price or up to 10% higher than retail price. Listing a price other than the MAP retail price (or up to 10% higher) 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 RIVCO 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 RIVCO 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.
5. From time to time, RIVCO may permit resellers to advertise MAP Products at prices lower than the MAP retail price. Such permission will always be given in writing. In such events, RIVCO 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 written notice to all resellers of such changes.
6. From time to time RIVCO may offer a direct manufacturer’s rebate to customers. In such events, it shall not be a violation of this MAP Policy to advertise the availability of the manufacturer’s rebate, provided that (a) the advertisement includes a MAP-compliant price, the rebate amount, and the net price after manufacturer’s rebate in the same type size and style; (b) an asterisk is placed next to the net price after manufacturer’s rebate; and (c) the “*After manufacturer’s rebate” appears in the same area of the advertisement as the advertised product.
7. Where RIVCO products are bundled with or sold as part of a package that includes other products (whether or not manufactured by RIVCO), it shall be a violation of this MAP Policy to sell or advertise the bundle (or package) at a price that: (a) is lower than the total Minimum Advertised Price of the RIVCO product (s) or (b) 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 RIVCO. Its shall be a violation of this MAP Policy to include in any advertising for RIVCO 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 the MAP price. Advertising that includes an additional discount, coupon, gift card, points, or any other incentive for future purchases (regardless of whether the future purchases are of a RIVCO product) shall be evaluated under the same guidelines as described in this Section 7 regarding product bundling. For example, a gift card redeemable on a future purchase would be considered an “other product” under this Section 7. This Section 7 shall not apply to any direct manufacturer’s rebate offered by RIVCO on any RIVCO product or its partners’ products.
8. 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 RIVCO Products, so long as no price is listed.
9. If a reseller with multiple store locations violates this MAP Policy at any particular store location, then RIVCO will consider this to be a violation by all of the reseller’s locations.
10. RIVCO sales representative(s) are NOT permitted to discuss this MAP Policy or make any agreements or assurances with respect to RIVCO’s Policy regarding reseller advertising or pricing. This also includes any consumer program or promotion that affects any MAP Products covered by this policy.
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