This clause sets a floor price—the lowest price you're allowed to advertise the product for. For example, a shoe supplier might say "you cannot advertise these shoes for less than £50." This matters legally because it's a form of price control. In the UK and US, MAP clauses are generally legal (unlike fixing the actual selling price, which is illegal), but only if they control advertising, not the final price customers pay. You can legally sell below the MAP price; you just can't advertise it that way. The supplier uses this to protect their brand image and prevent a "race to the bottom" on price.
Understand that MAP only controls what you advertise, not what you can actually charge—you can sell below MAP if a customer asks, you just can't put it in an ad. Negotiate for a MAP that gives you enough margin to make a profit, and ask for a clause allowing you to advertise below MAP during genuine sales or clearance events. If the MAP is too high and prevents you from competing, push back and ask for a lower figure or a review after 6 months. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause sets a floor price—the lowest price you're allowed to advertise the product for.
Why should I care about this clause?
For example, a shoe supplier might say "you cannot advertise these shoes for less than £50." This matters legally because it's a form of price control.
What are my options?
In the UK and US, MAP clauses are generally legal (unlike fixing the actual selling price, which is illegal), but only if they control advertising, not the final price customers pay.
How does this affect small businesses?
You can legally sell below the MAP price; you just can't advertise it that way.