What is MAP (Minimum Advertised Price) policy?

MAP (Minimum Advertised Price) policy refers to agreements between retailers and manufacturers where the former agrees to limit their advertised prices for certain products to a predetermined minimum amount set by the latter. This type of policy is often used as a way to protect brand image and deter competing merchants from undercutting one another’s prices, thus leading to a healthier marketplace. Additionally, it gives manufacturers more control over their product’s sales and market positioning.