Ken-Tool has a long and proud history as a leading worldwide manufacturer of quality tire service tools and automotive aftermarket products. As a primary manufacturer, its products enter the marketplace through the traditional aftermarket network of authorized distributors and retailers. Ken-Tool believes in the investment that its distributors and retailers make in its products, including the promotion of the Ken-Tool brand image. This is undermined by unfair advertising practices and the advertising of Ken-Tool’s products at significant price discounts.
To help preserve Ken-Tool’s image and standard for providing end users with high-quality products and good sales support, Ken-Tool is unilaterally adopting this Minimum Advertised Price Policy (“MAP Policy”), effective July 15, 2014. The MAP Policy will be available on Ken-Tool’s website at www.kentool.com. Ken-Tool may amend this policy.
WHAT IS THE MAP POLICY?
Ken-Tool regularly provides its published list prices to its authorized distributors and retailers. Attached to this MAP Policy is a document entitled “Exhibit A” that identifies the Minimum Advertised Price (“MAP”) for certain Ken-Tool products that are subject to this policy. Ken- Tool’s products may not be advertised or promoted at net prices less than the MAP. The MAP for all products can change; before you advertise, please check the listing or contact Ken-Tool at (800) 536-8665 to verify.
TO WHAT DOES THE MAP POLICY APPLY?
The MAP Policy applies to the Ken-Tool® branded products identified on Exhibit A. All advertisements for these Ken-Tool products that appear on or after the above effective date must comply with the MAP Policy. These prices will remain in effect until they are amended, withdrawn, or replaced by Ken-Tool.
Ken-Tool may occasionally discontinue models, engage in promotions, or engage in the sale of “close out” products or clearance inventory. In those circumstances, Ken-Tool may modify or suspend the MAP policy with respect to the affected products. If it does, Ken-tool will notify dealers, distributors, and retailers of the change.
TO WHOM DOES THE MAP POLICY APPLY?
The MAP Policy applies equally to all authorized distributors, dealers, wholesalers, jobbers, retailers, and other resellers who advertise and sell Ken-Tool products. Once a buyer purchases Ken-Tool’s products for resale, it acknowledges and understands the MAP Policy. Unauthorized resellers are also subject to the MAP Policy.
WHAT IS ADVERTISING?
The MAP Policy applies to all advertisements of Ken-Tool products in any and all media, including, but not necessarily limited to, flyers, posters, coupons, mailers, inserts, newspapers, magazines, catalogs, mail order catalogs, Internet or similar electronic media, television, radio, and public signage. The MAP Policy does not apply to in-store advertising that is not distributed to the customer. Retailers must not engage in any form of advertising or advertising practices that violate any federal, state, or local laws or ordinances.
The MAP Policy does not apply to the price at which the Ken-Tool products are actually sold or offered for sale to an individual customer within the dealer’s location, over the telephone, or through an electronic communication. Retailers may sell Ken-Tool products at whatever price they deem appropriate. Nor does the MAP Policy establish a maximum advertised price.
The MAP Policy applies to Ken-Tool products that are sold on the Internet; pricing listed on an Internet site is considered an “advertised price” and must adhere to the MAP Policy, except these requirements do not apply to pages or levels associated with an intent to purchase. The actual prices that are charged to customers may be provided by telephone, email response, and product purchase confirmation webpages or communications, because the MAP Policy does not restrict the actual price that a reseller charges for Ken-Tool products. In other words, resellers may display prices below the MAP at the time the customer purchases a Ken-Tool product. The MAP Policy applies to auction-type sites, and offers made to “buy it now” (or similar offers) advertising instant purchase at a price below the MAP violate the MAP Policy.
The MAP Policy does not prohibit resellers from bundling or selling as a package Ken-Tool product(s) with other products, whether or not they are Ken-Tool products. But it does violate the MAP Policy to sell or advertise the entire bundle or package at a price that is lower than the total MAP of the Ken-Tool product(s).
The MAP Policy does not allow resellers to advertise a coupon, discount, rebate, or incentive on Ken-Tool product(s) that has the effect of immediately reducing the advertised price of the Ken-Tool product below the MAP.
WHY SHOULD I FOLLOW THE MAP POLICY?
Ken-Tool may monitor the advertised price of dealers, distributors, or retailers, either directly or through the use of third parties. Ken-Tool reserves the right to unilaterally impose sanctions in its sole discretion. It is Ken-Tool’s policy not to do business with those who violate the MAP Policy.
If Ken-Tool determines that there has been a violation of the MAP Policy, Ken-Tool may in its discretion take immediate action. This may include but is not limited to working with the reseller to bring the offender into compliance, immediately cancelling all orders from the reseller, refusing to accept any new orders from that reseller indefinitely or for a certain period of time, revoke Ken-Tool’s promotional or cooperative advertising support to the reseller, or terminating its business relationship with any account that violates the MAP Policy.
Distributors are responsible for the actions of jobbers, retailers, and other customers that purchase a Ken-Tool product from such distributor and advertise it below the MAP, so distributors should advise their customers of the MAP Policy. Ken-Tool may impose penalties on distributors that sell Ken-Tool products to jobbers, retailers, or customers who violate the MAP Policy.
The MAP Policy is not an agreement between Ken-Tool and any reseller, and nothing in the MAP Policy should be construed to be such an agreement. Ken-Tool will not ask for, accept, or discuss any assurance of compliance or agreement from a reseller about the MAP Policy. Ken- Tool representatives or employees do not have the authority to modify the MAP Policy or to discuss retail pricing practices with any reseller. Ken-Tool disclaims any contrary comments.
All inquiries regarding the MAP Policy should be directed in writing to Doug Romstadt, MAP
Compliance, P.O. Box 9320, Akron, OH 44305, (888) KEN-TOOL.
Ken-Tool does not and will not discuss the business dealings of any account with any other
MINIMUM ADVERTISED PRICES
EFFECTIVE JULY 15, 2014
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