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MAP Violations

We are a manufacturer with MAP policies on our products and we have noticed that there are sellers here on eBay that are selling below our set MAP pricing. How do we go about enforcing our minimum pricing? 

Message 1 of 24
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23 REPLIES 23

MAP Violations

Hello,

 

Thank you for your response!

 

No, they did not purchase directly from us, they must have purchased from one of our wholesale customers. We do not recognize their business name, nor did any of our customers come forward and claim this business as one of their DBAs or recognize the business name either.

Message 16 of 24
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MAP Violations

MAP is legal as its a contract between parties that agree on type of items/brand in order to sell them. Typical MAP is between Factory/distributor to the party selling. Many MAP is there to ensure the price isnt lower than the cost of making it so factories can continue operating, especially important in developed countries where labor cost is high.

 

Price collusion is typically between various sellers to control the market in order to maintain huge profits..

Message 17 of 24
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MAP Violations


@funfactorychannel wrote:

MAP is legal as its a contract between parties that agree on type of items/brand in order to sell them. Typical MAP is between Factory/distributor to the party selling. Many MAP is there to ensure the price isnt lower than the cost of making it so factories can continue operating, especially important in developed countries where labor cost is high.

 

Price collusion is typically between various sellers to control the market in order to maintain huge profits..


It is actually called price fixing and in my opinion the reason that it is legal for manufactures to price fix and not for sellers is because the manufacturers pay politicians through lobbyist a lot of money for the privilege

Message 18 of 24
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MAP Violations


@short_circuit.lineman61 wrote:

Anyone know the difference between MAP and price collusion other than MAP is legal and price collusion  is not? Seems very similar to me


For a start, MAP does not prevent sales at any price. MAP prevents advertising prices below a given level. A seller can still sell below MAP.

 

MAP was a concept which was carefully crafted to avoid anti-trust violations, and the courts have ruled that it is a success.

 

When I ran marketing for a division of a Fortune 200 company, I had two lawyers working full time on how to keep our policies from violating anti-trust laws. They were worth a fortune to us.

 

 

Message 19 of 24
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MAP Violations

@jtorres_ssr as someone who has dealt with MAP on both the manufacturer and authorized reseller side of the equation, here's some info that may be helpful to you, though I know some of it may not be well received around here. 😂

 

While the VeRO program is not designed to be used to enforce MAP or reseller agreements, it is designed to enforce intellectual property rights.

 

If you are the legitimate rights holder, with trademarks and other documents to back you up, and these sellers are using your images from your website (instead of taking their own pics of the item) or any other copyright protected IP of yours, then VeRO would be the appropriate way to handle that infringement - and that can have the knock-on effect of making the MAP issues a moot point.

 

To be clear (before anyone gets out the pitchforks), I'm not advocating for abusing the VeRO program, but if it does apply and you do have IP rights that are being violated, I would encourage you to look into that program.

 

Secondly, if they are not an authorized reseller but you believe one of your authorized resellers is knowingly selling to them and not following their reseller agreement with you but you don't know who they are getting it from - sometimes doing a test buy can provide some illuminating information...and I'll just leave it at that.

 

And thirdly, do some googling and research on "triangulation fraud". It's a sophisticated type of fraud that is rampant on eBay - I know, because a company I worked for was hit by it.

 

https://community.ebay.com/t5/Selling/Warning-Retail-Arbitrage-Credit-Card-Fraud/td-p/30822324 

 

https://krebsonsecurity.com/2015/11/how-carders-can-use-ebay-as-a-virtual-atm/ 

 

Basically, fraudsters list items for sale on eBay that they do not actually have in their possession, then when they make a sale, they will place an order with a legitimate retailer (often through a direct website or other marketplace) to ship to their eBay buyer - and they pay for that order with a stolen credit card.

 

triangle (5).jpg

 

The legitimate retailer doesn't know it's fraud, so they ship the item to the unsuspecting eBay buyer and then end up getting a chargeback from the real card holder weeks later - putting them in the position to be out both the money and the product.

 

The fraudsters in this scenario will often sell for 40-50%+ off regular average retail prices because their cost of goods is effectively $0 (they are selling stolen items) and since they are just "drop shipping" from legitimate retailers, there is often no trail of reseller or MAP agreements to track down.

 

So if your authorized retailers who do adhere to MAP have their own direct ecommerce websites or sell on any marketplaces, you might want to check with them to see if they've received an influx of odd orders for those items and especially if they've seen an increase in chargebacks.

 

If you have reason to suspect that kind of fraud may be in play, I'm happy to provide more in-depth info about my experience with it if it would be helpful to you - eBay has known it's a problem on their site for well over a decade but they do very little to proactively stop it and even less to help victims of it when it is perpetrated through their platform.

Message 20 of 24
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MAP Violations


@jtorres_ssr wrote:

Hello,

 

Thank you for your response!

 

No, they did not purchase directly from us, they must have purchased from one of our wholesale customers. We do not recognize their business name, nor did any of our customers come forward and claim this business as one of their DBAs or recognize the business name either.


If your wholesale customers are not limited to sales to only resellers who you have approved, you have wasted your time creating a MAP program. If they are contractually limited, you need to find where your channel leak is and take action to plug it. You would, of course, run the risk of losing that distributor.

Message 21 of 24
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MAP Violations


@valueaddedresource wrote:

The fraudsters in this scenario will often sell for 40-50%+ off regular average retail prices because their cost of goods is effectively $0 (they are selling stolen items) and since they are just "drop shipping" from legitimate retailers, there is often no trail of reseller or MAP agreements to track down.


I would not say that at the outset they are selling stolen items because the items have not YET been stolen. The scammer has not yet used his stolen credit card to buy anything. They advertise at a low price because they need to get a buyer before the card is reported stolen and deactivated.

 

They make their money from the buyer payment - again hoping that they will be able to take the payment funds before the card is reported stolen and their account is shut down.

 

If I could make one suggestion about that triangular diagram: Add arrowheads to show the counterclockwise flow of the steps involved starting with the buyer order at the top.

Message 22 of 24
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MAP Violations

@itsjustasprain I think the concept of how those sales end up being stolen goods was clear enough but if it makes you happy, I'll refer to them as "items listed with intent to steal" in the future.

Message 23 of 24
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MAP Violations


@valueaddedresource wrote:

@itsjustasprain I think the concept of how those sales end up being stolen goods was clear enough but if it makes you happy, I'll refer to them as "items listed with intent to steal" in the future.


Right, definitely. At the point when the listings go up and the buyers see them no one has stolen anything yet EXCEPT for the credit card that the scammer is hoping to use for his purchase before it gets cancelled.

Message 24 of 24
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