What Is MAP Pricing? Minimum Advertised Price, Explained
By MAPComply team · Updated · Last reviewed
MAP pricing means a brand sets a minimum advertised price: the lowest price its resellers may show in ads and listings. It limits what a retailer advertises, not necessarily what the retailer can charge at the register. The brand sets it in its own policy, and retailers who ignore it risk losing supply.
This guide is for brands that sell through retailers and marketplaces, and for resellers who want to know what a brand's policy asks of them. It follows one product through wholesale cost, MAP and MSRP, then shows which retailer prices break a typical policy and why. If you searched "map pricing" for Google Maps API costs, see Google Maps Platform pricing instead. This page is about the retail term.
Not legal advice. MAPComply is not a law firm. Rules differ by state and country, and how a policy is written and enforced matters as much as what it says. Talk to an antitrust lawyer before you write or enforce a MAP policy.
What does MAP stand for in retail?
MAP stands for minimum advertised price. It is the lowest price a brand, manufacturer or distributor allows its resellers to show when they advertise a product: on a retailer's website, a marketplace listing such as Amazon, a Google Shopping ad, a social ad, an email or a printed flyer. You may also see it called manufacturer advertised price, or IMAP (internet MAP) when it covers online advertising only.
What a MAP price means is narrower than most people expect. It is a floor on the advertised price, not a fixed selling price. A retailer can advertise at MAP or anywhere above it. Whether it can charge less at the register depends on the brand's written MAP policy.
A MAP is not a law. It is the brand's own rule, backed by its right to decide who it sells to. That is why the usual penalty for ignoring it is commercial: lost co-op funds, lost access to new products, or lost supply.
A worked example: wholesale, MAP, MSRP and what a retailer can advertise
Here is one product followed through every price. All numbers, brands and retailers are illustrative and fictional.
Example Outdoor Co. makes the TrailPro 20L daypack:
| Price | Amount (illustrative) | Who sets it | What it means |
|---|---|---|---|
| Wholesale cost | $42.00 | Brand, in its price list | What the retailer pays per unit |
| MAP | $69.99 | Brand, in its MAP policy | The lowest price a retailer may advertise |
| MSRP | $79.99 | Brand, as a suggestion | A recommended price nobody has to follow |
What each advertised price leaves the retailer, before shipping, fees and overheads:
| Advertised price | Retailer's gross profit | Gross margin |
|---|---|---|
| $79.99 (MSRP) | $37.99 | 47.5% |
| $69.99 (MAP) | $27.99 | 40.0% |
| $64.99 (below MAP) | $22.99 | 35.4% |
| $59.99 (well below MAP) | $17.99 | 30.0% |
At MAP, every retailer that advertises the pack keeps about a 40% gross margin (profit divided by selling price). Each $5 cut below MAP takes roughly five points of margin with it, and once one seller drops its price, others may match it.
Which retailers comply?
Six fictional retailers carry the TrailPro. Here is what a shopper sees at each, judged against a MAP of $69.99 under a typical online policy:
| Retailer (fictional) | What the shopper sees | Price shown | Breaks a typical policy? | Why |
|---|---|---|---|---|
| North Ridge Outfitters | Product page | $79.99 | No | Above MAP is always fine |
| Summit Supply | Product page and Google Shopping ad | $69.99 | No | At MAP, not below it |
| Trailhead Deals | Marketplace listing | $64.99 | Yes (possible violation) | The advertised price is under the floor |
| Basecamp Direct | "Add to cart to see price", then $64.99 in the cart | $64.99 in cart | Depends on the policy | Counts if the policy treats cart prices as advertised |
| Ridgeline Gear | $69.99 listing with a clip-on 10% coupon | $62.99 after coupon | Depends on the policy | The policy must say whether coupons count |
| Valley Outfitters | $69.99 online, $59.99 on a store shelf tag | $59.99 in store | Usually no | Online MAP policies usually don't cover store prices |
The "Depends on the policy" rows are where most arguments with resellers start, and your written policy, not general practice, settles them. The guide on "see price in cart" and MAP covers the cart case in detail.
Even Trailhead Deals is only a possible violation at this point. Before acting, the brand would confirm it is the same variant (not the 15L size), that no approved promotion was running, and that Trailhead isn't exempt.
Which of your retailers look like Trailhead Deals or Basecamp Direct? Run a free scan on up to five of your Amazon products to see each seller's price, whether it sits below the MAP you enter, and which sellers hide the price until the cart.
How is a MAP price calculated?
There is no standard formula, and no law sets one. A common approach starts from the wholesale cost and the gross margin you want authorized retailers to keep:
- MAP = wholesale cost ÷ (1 − target margin)
- $42.00 ÷ (1 − 0.40) = $70.00, rounded to a price point of $69.99
Don't confuse margin with markup. A 40% markup on $42.00 gives $58.80, which is only a 28.6% margin ($16.80 ÷ $58.80), so the floor ends up far too low. Then sanity-check the result: MSRP usually sits above MAP so retailers have room for promotions, and the number should make sense next to comparable products and your own direct-to-consumer price.
Why do brands set a MAP?
Brands give several reasons. None is guaranteed, and the effects vary by category:
- Price perception. When a product is advertised everywhere at a deep discount, shoppers start to treat the discount as the real price.
- Keeping good retailers. If one seller undercuts everyone, retailers who pay for staff, displays and product education lose sales to it, and some stop stocking the line. The FTC calls this free riding, and names preventing it as a reason for minimum price policies (FTC, Refusal to Supply).
- Avoiding price wars. Where many sellers offer the same product, automated repricing can push the advertised price down step by step until nobody earns a margin.
- Channel conflict. A brand that sells direct doesn't want its own site to look overpriced next to its retailers.
There are costs too. A MAP limits how loudly retailers can advertise a discount, which can cost sales to price-sensitive shoppers. Some retailers work around it with cart-only prices or coupons. And a MAP does nothing for margins unless you check it and apply it the same way to every reseller.
Is MAP pricing legal in the US?
MAP pricing is not illegal in itself. Under US federal law, a carefully written, unilateral MAP policy is generally lawful:
- A manufacturer may choose who it sells to. In United States v. Colgate & Co. (1919), the Supreme Court held that, without an agreement and without any aim to create or keep a monopoly, a manufacturer may announce in advance the circumstances under which it will refuse to sell (Cornell LII).
- Resellers may go along with it. Monsanto Co. v. Spray-Rite Service Corp. (1984) reaffirmed that a manufacturer "can announce its resale prices in advance and refuse to deal with those who fail to comply," and that a distributor may comply to avoid being cut off. Complaints from other distributors are not, alone, proof of a price-fixing agreement (Cornell LII).
- Minimum price agreements are judged case by case. Leegin Creative Leather Products, Inc. v. PSKS, Inc. (2007) overruled the 1911 Dr. Miles rule: vertical minimum resale price restraints are judged under the rule of reason, not treated as automatically illegal (Cornell LII).
The FTC draws the key line: a manufacturer's unilateral decision is lawful, while a collective agreement among competitors to do the same is not (FTC, Manufacturer-imposed Requirements).
Three cautions:
- State and foreign law can differ. The same FTC page notes that some state antitrust laws and international authorities still treat minimum price rules as illegal per se. Maryland's Commercial Law § 11-204(b) calls an agreement setting a minimum resale price an unreasonable restraint of trade (Maryland General Assembly), and a 2023 Morgan Lewis alert describes Maryland as the only state with a law that explicitly treats such agreements as per se unlawful (Morgan Lewis). Selling into Canada, the UK or the EU needs its own advice.
- Practice can turn a policy into an agreement. The same alert warns that a policy that starts as unilateral on paper can end up looking like a bilateral pricing agreement in practice, especially when the people applying it aren't trained in antitrust basics. Negotiating compliance one-on-one with a reseller is the kind of exchange to avoid.
- Scope matters. The FTC challenged the MAP policies of five large music distributors and found them unreasonable. They barred discounted prices even in ads retailers paid for themselves, applied to in-store advertising, and made a retailer forfeit co-op funds for all its stores for up to 90 days after one violation.
The full treatment is in is MAP pricing legal?, and the MAP policy template is a starting point to take to counsel.
What does MAP cover, and what doesn't it?
The policy text decides what counts. The typical split:
| Usually covered | Usually not covered | Your policy must decide |
|---|---|---|
| Prices on the retailer's own website | The price charged in a physical store | Price shown only in the cart |
| Marketplace listings (Amazon, eBay, Walmart) | Prices negotiated by phone or in person | Price shown only after login |
| Google Shopping and other comparison ads | Prices at or above MAP | Coupons and promo codes |
| Social, search and display ads | MSRP itself | Member, bulk and subscribe and save prices |
| Email promotions, catalogs, flyers | Products the policy doesn't list | Bundles, used or open-box items, shipping, approved sale windows |
The right-hand column is where a vague policy fails: if it doesn't say whether a cart-only price or a clipped coupon counts, a reseller can argue it never advertised below MAP. See what counts as a MAP violation for each grey area.
Can a retailer sell below MAP?
Often, yes, as long as it doesn't advertise the lower price. Depending on the policy, a retailer may be able to charge less at the register or in a negotiation, discount a whole order, price a bundle, or offer a rebate that isn't advertised as a lower price. A well-written policy addresses each of these by name. If you are a retailer, read the brand's actual policy rather than assume any of them is safe.
MAP on Amazon and Google Shopping
Amazon. Amazon's Fair Pricing Policy says sellers are responsible for setting their own prices, and it targets pricing that harms customer trust, such as a misleading reference price or a price significantly higher than recent prices on or off Amazon (Amazon Seller Central). Amazon's Brand Registry page lists tools for reporting IP infringement, store policy violations and regulatory concerns (Sell on Amazon). Neither mentions brands' MAP policies. Your MAP policy is between you and your resellers; Amazon is not a party to it. And because many sellers can offer the same ASIN, you have to check each seller's offer, not only the price at the top of the page. More in Amazon and MAP pricing and Amazon MAP monitoring.
Google Shopping. Google Merchant Center requires the submitted price to match the price on the landing page and checkout, and its rules say not to use "View price in cart" (Google Merchant Center Help). So the price in a Google Shopping ad should match the price on the retailer's page, and Merchant Center's rules don't allow the cart trick there.
Who a MAP applies to. A MAP policy reaches the resellers you supply and have told about it. Sellers with no relationship to you are a separate problem: see unauthorized sellers on Amazon.
How do brands find out a retailer is below MAP?
There are three usual ways:
- Manual spot checks. Someone searches for the product on Amazon, Google Shopping and key retailer sites. It works for a handful of products and breaks down at dozens of SKUs and sellers.
- Tips from other retailers. Useful, but check for yourself and keep your own record, so the decision to act is clearly yours and not a response to a competitor.
- Scheduled monitoring. Software checks your listings on a schedule and records what it finds.
However you find a low price, you need evidence a seller can't wave away. "A customer told me" is not a credible basis for a notice. A useful finding includes:
- A capture of the page: screenshot or page source
- The price shown, and how it was shown (on the page, in the cart, after a coupon)
- The seller's name
- The exact product and variant, matched by identifier (ASIN, GTIN or UPC), not just by title
- The URL
- The date and time it was seen
- The MAP that applied on that date
Then treat every sighting as observed, not verified. It is a possible violation until you confirm the variant is right, no approved promotion or exemption covers it, and the price really was shown to shoppers.
MAPComply is self-serve MAP monitoring software built around that standard. The paid plan runs daily checks on Amazon, Google Shopping and brand and retailer sites. Every finding is pinned to your exact variant and carries the URL, the time seen, a screenshot or page source, the price judged, the MAP that applied and a SHA-256 fingerprint of the capture. See it in the sample report, or read how it works.
Run a free scan on up to five Amazon ASINs to see every seller and price on your listings. Type your MAP, add your email for the report link, and get a shareable evidence report in about a minute. No card needed.
What can a brand do about a MAP violation?
Most MAP policies set out escalating steps:
- A written notice to the seller with the evidence, asking it to fix the price.
- For a repeat, restricted terms: loss of co-op funds, promotions or access to new products.
- Stopping supply to sellers who keep ignoring the policy.
These steps come from your own policy, not from a law, so apply them the same way to every reseller.
MAPComply drafts the notice with the seller and the evidence filled in. You send it from your own email or through Amazon messaging; MAPComply never sends notices. Re-checks then show whether the seller fixed the price, and repeat sightings by the same seller are grouped into one case so repeat offenders stand out. For the full playbook, read how to enforce MAP pricing and the MAP violation letter guide.
MAP and related terms
| Term | Plain-English meaning | Read more |
|---|---|---|
| MSRP | Manufacturer's suggested retail price. A recommendation; retailers can charge more or less. | MAP vs MSRP |
| MAP policy (MAPP) | The written rules: which products, what counts as advertising, the consequences. | What is a MAP policy? |
| IMAP | Internet MAP: a MAP that covers online advertising only. | This page |
| UMAP and UPP | Unilateral MAP and unilateral pricing policy: rules the brand announces and enforces on its own, in the Colgate sense. | MAP vs UMAP vs UPP |
| MAP violation | An advertised price below MAP, as the policy defines advertising. | What counts as a MAP violation? |
| Resale price maintenance (RPM) | Setting the price a reseller actually sells at, not just advertises. Treated more strictly in some places. | Is MAP pricing legal? |
Where to go next
- Compare MAP with the suggested price in MAP vs MSRP.
- Write your policy with the MAP policy template.
- See what daily monitoring costs on the pricing page: plans from $199 a month, self-serve, no sales call, cancel any time.
Your next step: put your top five Amazon products and their MAPs into a free scan and see who is advertising below your MAP today.
Sources
- Cornell Law School, Legal Information Institute: United States v. Colgate & Co., 250 U.S. 300 (1919)
- Cornell Law School, Legal Information Institute: Monsanto Co. v. Spray-Rite Service Corp., 465 U.S. 752 (1984)
- Cornell Law School, Legal Information Institute: Leegin Creative Leather Products, Inc. v. PSKS, Inc., 551 U.S. 877 (2007)
- Federal Trade Commission: Manufacturer-imposed Requirements
- Federal Trade Commission: Refusal to Supply
- Maryland General Assembly: Commercial Law § 11-204
- Morgan Lewis: Minimum Resale Price Maintenance Agreements Face Scrutiny from Maryland Attorney General (2023)
- Google Merchant Center Help: Price (price) attribute
- Amazon Seller Central: Amazon Marketplace Fair Pricing Policy
- Sell on Amazon: Amazon Brand Registry
- Google: Google Maps Platform pricing