Minimum Advertised Pricing Policy

ALOHAT, LLC
MINIMUM ADVERTISED PRICING POLICY
(Updated – January 2018)

ALOHAT, LLC (dba MELIN), its parent and subsidiary companies (collectively, “MELIN”) provide premium headwear products (collectively, “MELIN Products”).  MELIN has established a strong reputation of providing quality products through multiple channels of distribution and any degradation of MELIN’s pricing strategy diminishes MELIN’s trade reputation, image and marketing strategy.  When advertised pricing of MELIN Products is not maintained, it eliminates legitimate retail competition and hurts both MELIN and each of its dealers.

Therefore, as a seller of any MELIN Product you agree, whether you are a distributor, physical store retailer, Internet retailer or any combination of the foregoing (collectively, “Authorized Reseller”), to abide by the following requirements and restrictions:

  1. Any Authorized Reseller that advertises MELIN Products at a price less than the minimum advertised price (“MAP”) also known as MSRP as shown on the attached schedule, or as may be listed on the MELIN partner page, may face certain consequences, including MELIN’s termination of the business relationship. An Authorized Reseller shall be in violation of the MELIN Map Policy should any advertised MELIN Product price be lower than $0.05 of MAP guidance.    
  1. For purposes of this policy “advertising” shall include any price listing accessible to a consumer whether provided digitally or through print, radio or television, outside window displays or printed materials, photographs or artwork visible from outside any retail facility. MELIN does not permit, under any circumstances, the selling of any MELIN Products on auction sites, such as eBay.  The terms, conditions and restrictions for any transactions involving MELIN Products which may be conducted on Amazon or a similar platform shall be set forth in an Authorized Online Reseller Agreement by and between MELIN and the Authorized Reseller.
  1. Advertising that in any way suggests or implies a price lower than the minimum advertised price will be considered a violation of this policy. Accordingly, policy violations may occur under the following examples, which include but are not limited to:
(a)        Online site wide discount sales;
(b)        Buy one get one free or at some reduced amount under MAP; or
(c)        Any activity which MELIN determines, in its sole discretion, is designed or intended to circumvent the intent of this MAP Policy.

Gift with purchase or free shipping in combination with any MELIN Product advertised in accordance with MELIN’s MAP policy shall not be considered a violation.

  1. MELIN also recognizes the need for dealer discretion in promoting MELIN Products and therefore will use prudence and flexibility to deal with issues that may arise. All inquiries and requests should be sent to MAP@melinbrand.com.
  1. Any violation of the MELIN Map Policy by an Authorized Reseller must be corrected within twenty-four (24) hours of written notification by a representative of MELIN (the “Cure Period”). Failure to correct such violation within the Cure Period shall result in a subsequent violation.  Violations shall continue to multiply for each twenty-four (24) period in which the violation is not corrected.  Each repeat violation during the twelve (12) month period following any initial or subsequent violation may result in MELIN taking one of the following corrective measures:
(a)        First Violation:  An email is sent to the Authorized Reseller indicating the nature of the violation and such violation shall be corrected within the Cure Period.
(b)        Second Violation:  A violation email is sent and the Authorized Reseller must correct such violation within the Cure Period.  MELIN may, at its sole discretion, place the Authorized Reseller’s account on hold for up to thirty (30) days and take additional steps deemed necessary by MELIN, which may include but are not limited to, withholding product shipments or revising credit terms.
(c)        Third Violation:  A violation email is sent and the Authorized Reseller must correct such violation within the Cure Period.  MELIN may, at its sole discretion, place the Authorized Reseller’s account on hold for a minimum of ninety (90) days.  Following the hold period, MELIN will determine, at its sole discretion, whether to reinstate or terminate the Authorized Reseller’s account.       

 

  1. Nothing in this policy is intended to affect the resale prices or require any Authorized Reseller to actually sell MELIN Products at the listed minimum advertised price. MELIN recognizes that Authorized Resellers are free to make their own decisions to advertise and sell any MELIN Product at any price they choose, without consulting or advising MELIN.  Similarly, MELIN shall exercise its right to make its own decisions regarding its Authorized Reseller Program, supplemental marketing materials, point-of-purchase displays, product allocation, new product availability, or future promotional, joint marketing or sponsorship programs.
  1. MELIN may provide updates to MAP from time to time at its discretion. MELIN may exempt certain designated designs, models and items from this policy for purposes of inventory reduction and model closeouts. In such case, the dealer shall advertise in a manner indicating the differentiation, e.g. closeout, discontinued color or style.

This action is solely MELIN’s unilateral corporate decision and responsibility.  No employee or sales representative of MELIN has any authority to discuss or modify this policy and any action of any person which purports to modify this policy or to solicit or obtain the agreement of any person to that policy is unauthorized and invalid.  Any questions about this policy should be in writing and directed to the MELIN MAP department at MAP@melinbrand.com.  No oral communications about this policy are authorized.

Sincerely, 

ALOHAT (DBA MELIN)