Archived posting to the Leica Users Group, 1998/03/18
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Marc wrote:
>>From 1970 or so onwards, the manufacturer may dictate at what price the
>>item is advertised (the "MAP") but NOT the actual selling price. Hence,
>>all of the "call for best pricing" entries we see in ads today.
The way this works is that a retailer does not qualify for co-op advertising monies unless the price is not mentioned or is at least the minimum. For some reason the FTC does not feel this is vertical price-fixing. Here is a quote from the FTC:
"both the courts and the Commission have judged cooperative advertising cases under the rule of reason, as long as the arrangements do not limit the dealer's right: (1) to discount below the advertised price, and (2) to advertise at any price when the dealer itself pays for the advertisement."
Bob