Altis Cobra - Dewalt
Unilateral Minimum Advertised Price Policy
Overview/Purpose. Altis Unilateral Minimum Advertised Price (“UMAP”) Policy is designed to maintain consumer confidence in the quality and value of [Altis] products, and to encourage dealers to carry UMAP Products and to invest in the marketing and sales of those products. To achieve these goals, the UMAP Policy encourages [Altis] direct and distributor Dealers (together, “Dealers”) to refrain from advertising [Altis] UMAP Products below recommended minimum prices (the “UMAP Price”). While [Altis] does not require adherence to the UMAP Prices, the UMAP Policy does have consequences for Dealers that advertise below UMAP Prices. [Altis] ’s UMAP Policy is explained in this document through the following series of questions and answers.
Questions and Answers
1. Q: What if a Dealer does not agree with the [Altis] UMAP Policy?
A: [Altis] does not require any Dealer to agree to any aspect of the UMAP Policy. All Dealers are entirely free to choose whether or not they will follow the [Altis] UMAP Policy. All Dealers may advertise [Cobra] products at any price they choose. However, Dealers will incur commercial consequences, explained in Q&A 7, if advertised prices do not comply with the UMAP Policy.
2. Q: How does the [Altis] UMAP Policy apply to actual resale prices?
A: The UMAP Policy has no relevance to a Dealer’s actual resale price; it only relates to price advertising. Dealers (as well as Distributors) may sell at any price they choose. The prices at which Dealers actually sell [Altis] Products is strictly between Dealers and their end-user consumers.
3. Q: What types of ads are covered by the UMAP Policy?
A: The UMAP Policy generally includes but is not limited to:
• Print Media (e.g., publications, newspapers, inserts, magazines catalogs, ), Direct mailers ( flyers and newsletters )
• Electronic Media (e.g., Internet web sites, on-line services, CD-ROM, and other electronic media).
4. Q: What types of Internet advertising are subject to the UMAP Policy?
A: All types including without limitation banner ads, pop-up ads, bulk e-mail, web pages and linked third-party sites (including without limitation Internet “e-tailer”, retailer and shopper sites, distributors, membership clubs, manufacturers, portals, auction sites). Allowing the shopping cart price to be advertised on search engines is a violation of the UMAP Policy.
5. Q: Can value-added products be advertised with a UMAP Product at no charge or at a reduced cost ?
A: Yes, but only if the retail value of the value-added products, when subtracted from the advertised price of the UMAP Product, is not lower than the UMAP Price.
6. Q: Are there exceptions to the UMAP Policy other than price ads using Instant Savings?
A: Yes. As an exception to the UMAP Policy, if [Altis] sponsors a special promotion regarding a UMAP Product, a rebate or coupon (for example, as a sweepstakes prize or other promotion), then an ad describing that promotion will comply with the UMAP Policy as long as the promotional or rebated final price is still in compliance with the UMAP Policy (i.e., at or above the UMAP price.
7. Q: What are the consequences if a Dealer does not comply with the UMAP Policy?
A: If a Dealer does not comply with the UMAP Policy, then, depending on the number of violations, [Altis] will take the following actions:
• For the first incident of non-compliance: Upon the first instance of non-compliance with the UMAP Policy, the Dealer will be given a written warning and will need to adhere to the UMAP policy within 48 hours. In addition, [Altis] will not pay for any portion of an ad that is the subject of the non-compliance, and the Dealer will be automatically disqualified from receiving any Instant Savings credit or reimbursement from [Altis] for the product or product combination advertised not in compliance with the UMAP Policy during the applicable Instant Savings promotion period -- even if [Altis] committed to such payment, credit or reimbursement prior to the violation.
• For the second incident of non-compliance: Upon the second instance of non-compliance with the UMAP Policy, the Dealer’s will no longer be authorized to receive product.
8. Q: How will a Dealer be notified that an advertisement did not comply with the UMAP Policy?
A: The UMAP Administrator, or the Dealer’s Distributor, will send a written notice to the Dealer at its normal address for business correspondence.
9. Q: What is the role of Distributors with respect to the UMAP Policy?
A: Distributors are asked to implement the UMAP Policy on behalf of [Altis] so that there is even-handed treatment of [Altis] direct and distributor Dealers.
10. Q: What special rules or procedures are required of Distributors operating within the UMAP Policy?
A: Distributors under the policy may be assigned an administrative role by the UMAP Administrator in implementing the policy. A summary of the tasks or procedures assigned to Distributors is as follows:
• Distributors will implement the UMAP Policy strictly in accordance with its terms. Distributors will, in a timely manner in accordance with the UMAP Policy, send the UMAP Policy, as well as the UMAP Prices determined by [Altis], to their Dealers.
• If it is determined that a Dealer is non-compliant, Altis will inform the distributor that the dealer is no longer authorized.
• Distributors will promptly implement shipment holds and order cancellations as required by the UMAP Policy. All of Distributors’ acceptances of Dealers’ orders for UMAP Products will be subject to the shipment-hold and order cancellation provisions of this UMAP Policy.
• Distributors may contact the [Bruce Uphoff] UMAP Administrator by e-mail [buphoff@absolutsales.com] to ask questions it has about the UMAP Policy.
• These procedures are subject to modification by [Altis] in its sole discretion.
11. What if a Dealer still has questions about the UMAP Policy after reviewing this document?
A: All questions regarding the UMAP Policy may be sent to the UMAP Administrator at:
Email: [buphoff@absolutsales]
The UMAP Administrator will respond in writing and will attempt to confirm whether or not a proposed ad complies with the UMAP Policy. The UMAP Administrator will attempt to respond within five (5) business days. Neither the UMAP Administrator nor any other [Altis] employee will enter into a discussion as to whether or not a proposed ad is in compliance. Determination by [Altis] shall be made in its sole, absolute discretion and shall be final. Importantly, a Dealer’s ad may be reviewed by [Altis] for reasons unrelated to the UMAP Policy. In such case, approval of the ad is not approval for UMAP Policy purposes.
Communication to Distributor Dealers will be sent through the Distributor.