A MAP agreement is defined as “The minimum price a manufacturer will allow its retailers to advertise their products”. A brand can decide on any price they want their product to be advertised for and only sell to retailers that agree to that price. The Supreme Court ruled that this is not a federal antitrust violation in the 1919 case United States vs. Colgate & Co.. According to the Colgate Doctrine, upon establishing a MAP Policy, it’s considered a unilateral and independent decision, and your retailer (who’s also independent) adheres to that MAP pricing, then you’re undergoing an entirely legal arrangement. With that being said, MAP Authority is simply facilitating a legal unilateral agreement and is not in violation of any antitrust legislation.
