E-commerce faces greater competition as it grows in popularity especially after Covid19 phase. To prevent monopolies and unfair markets, control mechanisms must be introduced.
One method for regulating pricing across all suppliers is a MAP. The minimum advertised price (MAP) for a product is determined for all brands within a certain market category. However, such a rise in online sales has obvious drawbacks, including an increase in illegal merchants and MAP Minimum Advertised price violations.
A detailed idea on map violation
A merchant violates its contract with the manufacturer when it advertises a product below the price the manufacturer has established in the MAP policy.
This threshold for the advertised price is set in the document known as the MAP policy. It gives resellers a pricing benchmark so they won't have to guess at a price for the product; instead, they will have a starting point to work from.
Why Tracking Is Important?
Track and recognize the MAP Scale Infractions Products with low prices aren't always appealing. Customers' perceptions of a brand may be impacted when they see goods from that brand being sold for an extremely low price, raising concerns about the quality of the goods.
Monitoring MAP infractions helps shield your company's reputation from harm. Monitoring data on product price changes is one method for identifying and removing violators of the minimum advertised price. You can accomplish this with the use of high-caliber information gathering and analysis software.
At the end
It is worth alerting another manufacturer when you discover a breach of the minimum advertised price. Give the vendor time to fix the mistake; Violations many a times are mistake which may be completely unintentional. So give them time. if this doesn't happen, you'll have enough proof to pursue further legal action.