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I never signed an agreement with this manufacturer. Do I have to comply with their Minimum Advertised Price rules?

Los Altos, CA |

I run a small website where I sell overstock products. I recently got a letter from the manufacturer of one of the items I tend to sell a lot of (it's a hair gel). They told me I was selling the item "below MAP" and that if I didn't stop they would sue me.

Is this even legal? I never signed any agreement with this manufacturer where I agreed not to sell below their MAP.

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Attorney answers 3


I know this does not seem fair but I am fairly certain they have some rights to protect their pricing in the market. I remember seeing similar claims against Costco a few years back that seem to have carried the day. That said, this is NOT my area of law and I'm sure others will jump in to opine. Lastly, you should spend a few bucks to have a 30-60 minute sit down in person with someone who does specialize in this area of law, for peace of mind.


The short answer to your question is that it very well might be legal and the manufacturer may have a claim against you. To determine this, however, you would need to meet with an attorney and go over specific details of your case, as well as the letter the manufacturer sent you. I would not provide further details of your dilemma on this website or any public forum. Instead call an attorney familiar with business disputes. Many of them (including my law firm) will provide free initial consultations. Regardless of how you proceed, I wish you luck.

The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyze this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also terms and conditions item 9, incorporated as if it was reprinted here.


As an expert to those fields Unfortunately I will tell u Depends from the products the company and what paperwork you signed or not signed.

You need to be very very careful .As a California Attorney and one of the very few that are Fraud Examiners ( CFE member of the Association of Certified Fraud Examiners ) i receive every day alerts about new scams. (I investigate fraud cases, as an economist, for 32 years). You describe in your question one of those schemes. , and

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