Is minimum advertised price legal?
Yes, within limits. A minimum advertised price (MAP) policy sets the lowest price a reseller may show in advertising. Under federal law, a manufacturer may "announce in advance the circumstances under which he will refuse to sell", a rule dating from 1919. Agreements on minimum resale prices have been judged under the rule of reason since 2007, meaning courts weigh the harm against the benefit case by case.
Three limits shape how you run a policy:
- State law can be stricter. Maryland's statute treats any arrangement that "establishes a minimum price below which a retailer, wholesaler, or distributor may not sell" as an unreasonable restraint of trade. Its antitrust chief said in 2023 that the state had ongoing investigations into these arrangements. A 2016 law firm alert also lists California, Illinois, Michigan and New York.
- Talking can create an agreement. In that same alert, Maryland's complaint alleged that Johnson & Johnson's policy became an agreement after discussions with Costco led to a revised version. That is an allegation, and it shows how a policy that starts as your own decision can stop looking like one.
- Reach matters. In 2000 the FTC charged CD distributors over MAP policies that covered even ads retailers paid for themselves, and estimated consumers may have paid as much as $480 million extra over three years. The FTC's guidance gives manufacturers "considerable leeway" over advertising they help pay for.
One question to put to your attorney directly: on a marketplace listing, the price shown is usually the price the shopper pays. A policy that affects the actual sale price is more likely to be treated as resale price maintenance, so ask how yours should handle those listings.
What order should MAP enforcement work in?
Start with the policy and leave the monitoring tool for second. Software finds low prices, and you can only act on them once you have a written rule and know who is bound by it.
| Step | What you do | Who it reaches |
|---|---|---|
| 1. Policy | Publish the rule and the consequences | Authorized resellers |
| 2. Seller list | Record who may sell, and check prices | Everyone, sorted into two groups |
| 3. Trace | Test buy, then find the supplying account | Unauthorized sellers and their sources |
| 4. Escalate | Apply the consequence that fits the seller | Whoever the trace identifies |
You will need all four, because both groups break the line. A study of about 1,000 online retailers, using a year of daily prices from one electronics and music manufacturer, found unauthorized retailers priced below MAP as much as 50% of the time. Authorized retailers did so about 20% of the time. Median discounts were around 13% and 5%. It is one manufacturer's data from 2016, so treat it as a guide to the pattern.
Step 1: write a MAP policy you can apply
Keep it short enough for a reseller to read in one sitting. Include:
- The products covered and each one's minimum advertised price, with an effective date.
- What counts as advertising: your site, marketplace listings, shopping feeds, email, social posts.
- A plain statement that resellers may sell at any price they choose and that the policy covers advertised prices only.
- A statement that this is your own decision, that you will not negotiate it, and that no agreement is needed.
- The consequences, listed in advance.
For consequences, one law firm suggests a warning, then a 60-day suspension, then six to 12 months, then termination after a fourth violation. Whatever you choose, apply it as written.
Name one person to send notices, and give them a script. Staff who have not been trained are how a one-sided policy starts to look like a pricing deal in practice. A sales rep promising a key account "one more chance" is the kind of conversation to prevent.
Step 2: list your authorized sellers and watch prices
Your list records every business allowed to buy from you and every storefront name they sell under. Your distributor contracts should say who distributors may resell to, because that gives you something to act on when a trace leads back to them.
Be realistic about what the list does on each marketplace. Amazon is an open store where any seller with genuine product can list, so your list will not block anyone there. Walmart's Brand Portal lets a registered brand owner assign authorized reseller status to Marketplace sellers. On either one, the list tells you whether a low price is a policy matter or a supply matter.
Then check prices on a schedule. A small catalog can start with a spreadsheet of top products checked weekly. Sort each low price into authorized or unauthorized, and record the date, the seller name and a screenshot.
Step 3: trace the leak to its source
Every unauthorized seller got the product from somewhere, and that account is usually where you have power.
Work through these in order:
- Identify the seller. For high-volume sellers with $20,000 or more in annual gross revenue on a marketplace, that marketplace must show a name, physical address and contact details on the listing page or in order confirmations.
- Make a test buy. Keep the order ID, photograph the outer box and packaging, and record any lot code or serial number.
- Compare with your shipment records. Unit or lot codes that you log against each customer point to the account that bought that stock. If your products carry neither, add codes on your next production run.
- Look for removed labels. In the Beltronics case, distributors allegedly sold outside their agreements and serial labels were replaced or removed to hide the source. The brand found out when buyers came in for warranty service.
Step 4: escalate according to who the seller is
The right response depends on what the trace found. Stopping supply is the main tool, and our Amazon agency team can run the marketplace side while your attorney handles the legal letters.
| What the trace found | What to do | The limit |
|---|---|---|
| Authorized reseller advertising below MAP | Apply your written consequences | No negotiating over the outcome |
| Distributor supplying unapproved sellers | Use your contract terms, then reduce or stop supply | Depends on what your contract says |
| Unauthorized seller with genuine, identical product | Close the source | Your policy does not bind them |
| Unauthorized seller with materially different product | Ask your attorney about a trademark claim | The difference must affect buying decisions |
| Counterfeit product | File an IP report with your test buy | You need your rights on record in Brand Registry |
The fourth row is where a reseller loses its usual defense. Resale of genuine goods is generally allowed under the first sale doctrine, but in Beltronics the Tenth Circuit held that the doctrine does not cover goods that are materially different, and that differences can include warranties and services. A reseller can avoid liability by adequately disclosing the differences. Other courts may weigh this differently, which is one more reason to involve counsel.
What will Amazon act on?
Amazon acts on intellectual property and leaves pricing and distribution to you.
| Problem | Does Amazon act? | Your route |
|---|---|---|
| Price below your MAP | No | Off Amazon, through your policy and contracts |
| Unauthorized seller of genuine product | No | Close the supplying account |
| Dispute over who is an authorized distributor | No | Your contracts and counsel |
| Counterfeit, or misuse of your trademark or copyright | Yes, on a valid report | Report a Violation in Brand Registry |
Brand Registry "doesn't control who can sell your products or at what price," in the words of Amazon's forum staff, and Amazon does not step into distribution authorization disputes.
Three practical points follow:
- Report only what you can back up. Amazon staff recommend a test buy and ask for its order ID. Calling a low price counterfeit is a poor plan, because Amazon told one manufacturer that false or inaccurate notices violate its policies.
- Get the trademark in order. Brand Registry takes an active registration or a pending application. Walmart's Brand Portal needs a full USPTO registration, and a pending mark is not yet eligible.
- Look at Transparency for counterfeits. Amazon's serial code program puts a unique code on each unit, and a valid code must accompany every protected unit listed or shipped. It requires a registered trademark and a GTIN, and costs $0.05 per code for the first million. With Amazon-issued codes, you must be able to code every unit you make, wherever it sells.
What can you still do before Black Friday?
You can do the fast parts. Black Friday is November 27, 2026, so you have roughly two weeks from this post's publish date.
- This week, get your attorney's sign-off and send the policy or a reminder with the effective date, using your written script.
- Also this week, place test buys on your worst offenders so the orders arrive before the rush.
- Next week, check top products daily, and apply consequences to authorized resellers as written.
- Before you raise budgets, check who is winning the sale on your top listings. If a reseller is, sort that out before adding spend. Our guide to Amazon PPC management covers who should run those budgets, and the Black Friday playbook covers the rest of the week.
Leave Transparency and new trademark filings for January. Transparency protection starts only after a product passes Amazon's operational review, and it needs codes on your packaging.
Next step
If low prices are hurting your authorized sellers, send us your top products and your current policy. We will look at who is selling them on Amazon and Walmart, and tell you plainly which parts we can run and which belong with your attorney.
