Given the continued (and rapid) growth of e-commerce, retailers and distributors are likely to see a continued increase in manufacturers’ use of Internet Minimum Advertised Price policies—or IMAP policies—as a means to reign in excessive price reductions on the internet.
Most courts that have addressed this issue have upheld such policies as valid under the Sherman Act. But there is a lack of uniformity in state law. Thus, manufacturers, distributors, and other companies should carefully vet the language of their IMAP policies to avoid unwanted antitrust scrutiny.
Colleagues Daren Garcia, Ken Rubin and I recently published the following article, “Practical Tips for Maintaining Online Minimum Advertised Pricing Policies and Avoiding Antitrust Issues.”
Click the above hyperlink or download the PDF to get a closer look at how to craft IMAP policies so as to avoid scrutiny under antitrust laws.
This article discusses the legal issues relating to IMAP policies, including a look at the legal background and recent developments (i.e. case law) relating to policies. We also provide several recommendations for companies looking to implement an IMAP policy.