MAP Services Corp. is advising manufacturers, particularly those in the automotive and powersports industries, to immediately audit their pricing policies. The warning follows aggressive enforcement actions by the Federal Trade Commission (FTC) and state attorneys general against major auto groups for deceptive pricing.
These actions, including the historic $20 million settlement with Leader Automotive Group, signal an escalation in regulatory scrutiny over all advertised prices.
“The FTC’s focus on advertised price integrity creates a new compliance burden for all brands,” said David Portugal, founder, MAP Services Corp. “A legally sound MAP policy is the first line of defense. Our enforcement goes beyond simple price checks to also detect prohibited signaling language, like ‘See Price in Cart,’ which can destroy brand value while exposing the brand to legal risk.”
Compliance Focus: The Unilateral, Defensible MAP Policy
To minimize exposure and build and enforce a policy that is both effective and legally sound, the policy must be unilateral and ensure:
- Restriction on advertised price: The policy must restrict the public-facing advertised price.
- Restriction on signaling: It should prohibit language that signals a lower price is available (e.g., “Call for Price”) in public ads.
- Freedom of sale: The policy must explicitly allow retailers to sell at any price they choose privately (e.g., via in-cart discounts).
