MAP POLICY

Petsport USA Minimum Advertised Price Policy

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Petsport USA Inc., a California corporation, and home to the Petsport brand (“Petsport”), has adopted the following Minimum Advertised Price Policy (“MAP Policy”) for all Petsport products, except as designated by Petsport from time to time in writing or as posted on its website (“Covered Products”). Petsport’s goal in establishing this policy is to avoid degradation of, or damage to, the premium quality and image of its Covered Products and to the trademarks, other marks, brands or trade names under which its Covered Products are sold. Petsport intends to sell these Covered Products only to Distributors/Resellers (“Resellers”) that do not advertise Covered Products below the Minimum Advertised Price set forth in this policy. Petsport may choose to enforce this policy through action up to and including termination of its business relationship with Resellers who advertise any Covered Product below the stated Minimum Advertised Price as set forth below.

 

Petsport will make all decisions concerning compliance with and enforcement of this MAP Policy unilaterally. This MAP Policy is a unilateral declaration of policy by Petsport and does not reflect or constitute an agreement between Petsport and any Reseller, any other authorized distributor, or any other person or entity, and by issuing this policy Petsport is not seeking any such agreement.

 

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This MAP Policy will be applied and enforced as follows:

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1. The minimum advertised price (“MAP”) for each Covered Product shall be the price designated as the MAP on the current Petsport price list as issued by Petsport from time to time, or, if no MAP is listed for any Covered Product, the MAP will be the Manufacturer’s Suggested Retail Price (“MSRP”) for that Covered Product minus 15% of that MSRP. Current price lists may be obtained by contacting a Petsport sales representative. The MAP for one or more products may be amended from time to time and may be suspended periodically for national, regional and/or seasonal promotions sponsored by Petsport. Changes to the MAPs will be posted on the Petsport website designated by Petsport and will supersede the MAPs on the price lists. It is the responsibility of Resellers of Petsport Covered Products to monitor the designated Petsport website for updates.​

2. This MAP Policy applies to any and all forms of print and electronic media, direct mail, and audio and video communications. Examples of communications to which the MAP Policy applies are set forth below in the PETSPORT MAP POLICY FAQS.

3. Petsport considers any price advertised below the MAP a violation of its MAP Policy. For example, if a product with a MAP of $34.99 is advertised below $34.99, this is a violation of the MAP Policy.

4. The MAP Policy only applies to advertised prices of Covered Products, and not the prices at which Covered Products are actually sold. Resellers are free to resell Covered Products at any price they choice.

5. Petsport reserves the right to modify, suspend, or cancel the MAP Policy, or modify any or all MAPs at any time. Petsport will provide notice of any such modifications, suspension or cancellations on the designated Petsport website. It is the responsibility of each member of Petsport’s distribution network to monitor the Petsport designated website for updates.

6. If a Reseller advertises prices below those required by this MAP Policy, Petsport shall take appropriate action to enforce this MAP Policy, including but not limited to one or more of the following actions:​​

• Notify the Reseller of the non-compliant advertisement with a reminder of Petsport’s MAP Policy on Covered Products.

• Suspend the Reseller’s right to sell the Petsport Covered Product in question for a period of time (e.g., thirty (30), forty-five (45) or ninety (90) days) depending on the breadth and severity of the MAP Policy violation, commencing from the date of notice from Petsport;

• Suspend the Reseller’s right to sell the entire Petsport series designation in question for a period time (e.g., thirty (30), forty-five (45) or ninety (90) days) depending on the breadth and severity of the MAP Policy violation, commencing from the date of notice from Petsport;

• Suspend the Reseller’s right to sell the entire Petsport Case-Mate product portfolio for a period of time (e.g., thirty (30), forty-five (45) or ninety (90) days) depending on the breadth and severity of the MAP Policy violation, commencing from the date of notice from Petsport;

• Suspend the Reseller’s right to sell the entire Petsport product portfolio for a period of not less than one (1) year, commencing from the date of notice from Petsport; and/or

• Terminate the Distributor/Reseller Agreement or other relevant agreement between Petsport and the Reseller who has violated this MAP Policy.

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PETSPORT MAP POLICY FAQ

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Q: What are examples of communications to which the MAP Policy applies?

A: The MAP Policy applies to all catalogs, coupons, coupon codes, promo codes, flyers, inserts, magazines, mail order catalogs, mailers, postcards, newsletters, newspapers, posters, billboards, television and radio advertising, internet-based advertising including without limitation, newsletters, e-mail solicitations, call for newsgroups, Internet “lists,” website advertising, Internet auctions, and electronic billboards.

 

Q: Do Resellers need to sign the MAP Policy indicating that they agree with its provisions?

A: No. The MAP Policy is not an agreement between Petsport and the Reseller. It is a policy that Petsport is unilaterally implementing for all members of the Petsport distribution network in order to maintain the integrity of Petsport products. The purpose of this document is to inform all members of the Petsport distribution network that there are certain consequences for deviating from the published MAPs of Covered Products.

 

Q: Does the MAP Policy affect selling prices?

A: No. Resellers are free to resell Covered Products at any final price of their choice. The MAP Policy only provides requirements relating to advertised prices for Covered Products.

 

Q: Where can I obtain information on suspensions or modifications to the MAPs, or for updates to this MAP Policy?

A: Any temporary suspensions or modifications of the MAPs, as well as any modifications to the MAP Policy, will be posted on Petsport’s website. Any member of the Petsport distribution network may also contact their Petsport sales representative. No individual notices will be sent with respect to MAP suspensions or modifications, or changes to the MAP Policy.

 

Q: How are “drop in cart” or “call for pricing” advertisements treated by the MAP Policy?

A: Advertisements and offers to sell that do not include a particular price, but require further action that implies a price that is lower than the MAP price violate the MAP Policy. Examples of such unauthorized advertisements include “drop in cart” pricing, “add to cart” pricing, “click to see” pricing, and “call for” pricing. Also prohibited are advertisements that indicate that discounts may be available when a customer takes specific action that goes beyond buying the product, such as “special price option” or “name your price.”

 

Q: What are examples of advertising that does not violate the MAP Policy:

A: Examples include:

• Advertising that does not state a price directly or by reasonable implication.

• Advertising that promises to “meet or beat” a competitor’s price.

• Advertising that offers free or low interest financing, deferred payment, free shipping, free installation or some other free service for a Covered Product.

• Advertising for Covered Products that are clearly designated as “refurbished,” “demo” or “used.”

• Advertising that includes an offer of a gift card when a Covered Product is purchased and that provides for a future discount on subsequent purchases from the Reseller.

• Advertising of a blanket price reduction, applicable store-wide, so long as no Covered Product is shown in the advertisement with the discounted price.