Astro Gaming MAP Policy
Effective October 15, 2014, Skullcandy and Astro Gaming are adopting a minimum advertised
price (“MAP”) policy. This MAP policy is designed to (1) provide a means such that retailers
can compete on customer experience and service instead of price for in-line products, and (2)
support the brands as premium offerings. This policy has been unilaterally adopted by
Skullcandy and Astro Gaming.
Policy Coverage
This policy covers all Skullcandy and Astro Gaming retailers located in the United States. This
policy applies to all advertising equally, including print advertising and all public exposure
involving products and pricing. It will not apply to anything in-store including shop front
windows. Although retailers remain free to establish their own resale prices, Skullcandy or Astro
Gaming may, without assuming any liability, unilaterally impose sanctions and not ship products
to retailers who advertise in-line products. Skullcandy’s and Astro Gaming’s promotional
periods can be found at the end of this Policy.
A list of MAP restricted products which identifies current minimum advertised price can be
obtained on http://bit.ly/SkullcandyMAPlist2014.
Discontinued or end-of-life products (i.e. products
which do not appear on current price list) which previously may have been MAP restricted
products may be advertised at a price below MAP so long as the advertisement clearly states the
prior year of the product, “discontinued model” or “discontinued color-way”. Discontinued
products SKUs will not appear on the price list. Models or color-ways that carry over from year
to year are not classified as discontinued.
Skullcandy and Astro Gaming will not discuss any conditions of acceptance related to this
policy, as it is non-negotiable. Nothing in this policy or in any other contract or agreement with
Skullcandy or Astro Gaming shall constitute an agreement between Skullcandy or Astro Gaming
and the retailer that the retailer will comply with this policy. Neither Skullcandy nor Astro
Gaming are seeking agreement from any reseller to adhere to this policy. It is entirely within the
discretion of the reseller whether to comply or not comply.
Resale Prices:
Every authorized dealer, distributor or reseller remains free to independently establish its
own retail prices of products, including MAP restricted products. This MAP Policy applies
to “advertised price” only, and applies equally to all authorized dealers, distributors and
resellers of products, regardless of size or purchasing power. Skullcandy or Astro Gaming
may at any time in their sole discretion revise any commercial terms of sale applicable to
products, including list price, suggested retail price, and minimum advertised price.
Compliance with Advertising Guidelines:
In addition to compliance with the minimum advertised price restrictions applicable to
MAP restricted products, all advertisements of products must conform to the product
advertising guidelines (the “Advertising Guidelines”) as in effect from time to time,
including the following:
• All advertisement(s) must include the associated model names that are commonly
used to reference and identify the products (e.g. Smokin Buds, Hesh, Crusher, Air
Raid, A50, A40, etc.)
• Advertisement(s) must display the appropriate brand name prominently and must
contain the correct, authorized and approved logo, product illustration, model name
and mention of at least one feature. Display advertisements depicting or illustrating
products without brand names are not permitted.
• Advertisements must contain the approved product imagery corresponding to the
product name.
• Advertisements must not be deceptive and should comply with state and /or federal
laws.
Additional Restrictions:
• This MAP Policy applies
to any stage of online purchases from an Authorized
Internet Dealer where the price can be obtained publicly without accessing personal
consumer information. This is the area of an Authorized Internet Dealer’s website
which can be accessed by a consumer only (a) when the consumer has acted in a
deliberate manner to purchase, and (b) after the consumer’s personal information
(name, address, etc.) or login credentials have been entered. Such area must be
protected by security measures where data is not accessible by price comparison
engines or “spiders”.
• Any method on a website intended to solicit potential customers to put the product in
a cart that ultimately displays a price lower than the minimum advertised price is a
violation of this MAP Policy.
• Any rebate associated with a MAP restricted product advertisement whether payable
at point of sale or after the fact, shall be a violation of this MAP Policy. The sole
exception to this is a rebate payable directly by Skullcandy to the end-consumer.
• Free shipping and handling may be offered, provided that such incentives are not
presented as a discount to the actual product price for MAP restricted product.
• Promotional codes or coupons are permitted, provided they do not reference products
and are advertised consistent with this MAP Policy.
• The wording “minimum advertised price” or “MAP” or phrases of similar meaning
shall not appear in any advertisement featuring products, nor shall any reference be
made to the existence of a minimum advertised price policy which precludes a lower
price from being advertised. Any such notices or phrases shall constitute implicit
advertisement below the minimum advertised price, and will be a violation of this
MAP Policy.
Nothing in this MAP Policy shall affect Skullcandy’s or Astro Gaming’s right to terminate any
Authorized Reseller in accordance with the terms of Skullcandy’s or Astro Gaming’s agreement
with such Authorized Reseller.
Policy Modifications
Skullcandy and Astro Gaming reserve the right at any time to modify, suspend, or discontinue
this policy in whole or in part or designate promotional periods during which the terms of the
policy change or designate periods of time during which the policy is not applicable. Policy
modifications shall be made available on http://bit.ly/SkullcandyMAPlist.
Contact Information
SKULLCANDY AND ASTRO GAMING SALES PERSONNEL HAVE NO AUTHORITY TO
MODIFY OR GRANT EXCEPTIONS TO THIS POLICY OR MAKE ANY AGREEMENTS
WITH ANY RESELLER REGARDING THIS POLICY OR VIOLATIONS OF THIS POLICY.
All questions or comments regarding this policy are to be directed to the policy administrator at
policyadministrator@skullcandy.com (for both Skullcandy and Astro Gaming). The policy
administrator shall be solely responsible for determining whether a violation of the policy has
occurred, communicating decisions to retailers regarding the policy and receiving any
communication regarding sanctions imposed under this policy. You may report a violation of this
policy at policyadministrator@skullcandy.com (for both Skullcandy and Astro Gaming).
Planned Promotional Periods
In accordance with this MAP policy, Skullcandy and Astro Gaming will publish a promotional
calendar monthly that will detail MAP compliant promotions which may include product
discounts. The calendar will allow all authorized resellers the opportunity to advertise and
promote Skullcandy and Astro Gaming products as detailed in the document. This promotional
calendar will be published 60 days prior to the commencement of the promotion.
End of Life or Discontinued Products
End of Life, discontinued, and other seasonal sales are at the sole discretions of Skullcandy and
will be communicated through account specific Sales Reps for universal price parity.
MAP Enforcement
Retailers remain free to establish their own resale prices, however, Skullcandy may, without
assuming any liability, unilaterally impose sanctions and not ship Skullcandy products to
retailers who advertise in-line Skullcandy products. Below are generally the sanctions
Skullcandy may unilaterally impose for violating its MAP policy:
Through December 31, 2014, Skullcandy may invoke its right to withhold shipments of product.
Beginning January 1, 2015, a MAP allowance of 10% will be defined within the existing cost
structure of all products. This is not additional margin, but rather a portion of existing margin
that becomes “at risk” if a retail partner chooses to opt out of the MAP program.
• First Violation* - 24 hour notice to cure (failure to cure within 24 hours would be considered
a second violation)
• Second Violation* - 30 day suspension of 10% MAP allowance on product family** that had
MAP violation.
• Third Violation* - 60 day suspension of 10% MAP allowance on all products.
• Fourth Violation - Life MAP penalty all products
• Fifth Violation – Skullcandy and /or Astro withhold shipment of product
*For these enforcement measures only, if there are no further violations of Skullcandy’s
MAP policy by a retailer for a consecutive 12 month period from the expiration of the last
penalty period, Skullcandy may consider restarting the retailer’s violation escalation.
** Product families are: Lifestyle buds, Women’s, Gaming, Sports Performance, Over Ear
Headphones, Wireless Speakers, Gaming. Astro products will be treated separately but
Skullcandy Inc. retains the right to withhold shipments of both Skullcandy and Astro products
after the 5th violation of either line of products.