What is a MAP Policy?
MAP stands for "Minimum Advertised Price." A MAP policy is a formal agreement that brands use to set the lowest price at which their products can be advertised. In addition to establishing this minimum price, the policy also specifies the consequences for not complying and the steps to address any violations.
MAP Pricing vs. MSRP
To understand the difference, think of the MSRP (Manufacturer's Suggested Retail Price) as a suggested ceiling for the price, while the MAP serves as an enforced floor. MSRP is intended for consumers, offering a benchmark price, whereas MAP is directed at retailers
to prevent undercutting.
Consequences of Price Violations
Selling a product above the MSRP typically just leads to fewer sales due to competitive pricing. However, pricing below the MAP can lead to more serious repercussions, such as temporary suspension from selling the product, being barred from reordering, or even having the business relationship terminated—depending on the terms of the MAP policy.
Also, I don't know who needs to hear it, but Nintendo did not invent this and your favorite manufacturer also probably has one.