September 2020 (revised date)
Dear Valued Reseller:
Everyone has a HEVI-Shot® story™. The story always describes an incredibly difficult shot – long yardage, high winds, a triple – something clearly out of the ordinary that HEVI-Shot® products made possible. These stories provide life-long memories for our hunters. They let us build a strong, performance-based brand for the Company that we are committed to preserving and growing.
Federal Ammunition will implement a unilateral policy in the USA of Minimum Advertised Prices to protect the Federal Ammunition brand and our dealers’ margins. The MAP policy for 2020 will apply to the below products only:
- All HEVI-Metal Long Range® waterfowl shells
- All HEVI-Metal® turkey shells
Federal Ammunition will not apply MAP to other products at this time, but may choose to add or remove products from the MAP policy at any time.
With this policy, Federal Ammunition, in its sole discretion reserves the right to discontinue doing business with any dealer that advertises any products covered by this MAP policy at a price lower than the MAP.
The policy applies to:
- Advertisements of MAP products in any and all media, including internet sites, flyers, posters, mailers, newspaper inserts, catalogues, magazines, and electronic media.
- Prices provided to consumers via electronic means that disguise prices – such as “Call for pricing” advertisements and “Add to cart to see price” on Internet shopping sites – that do not conform to MAP.
- Online auctions where the opening price for Federal Ammunition products is below MAP.
- Advertisements for products on comparative shopping Internet sites, electronic marketplaces, and search engines.
- Programs or promotions determined by Federal Ammunition to be substantially similar to any of the above.
- Gift cards are allowed with store promotions but will not exceed $25.00. Gift Cards cannot be used with MAP Holidays.
The policy does not apply to in-store advertising that is not distributed to customers.
From time to time, Federal Ammunition may modify or suspend MAP pricing, and allow dealers to advertise prices lower than MAP for products covered by the policy, by providing advanced notice to all dealers and specifying the time periods when the policy will be suspended and re-instated.
Federal Ammunition acknowledges that dealers may choose to sell products in any way they choose and may establish any price they choose for the sale of such product and Federal Ammunition does not intend to interfere with or participate in this choice. However, Federal Ammunition retains the right to sell its products only to dealers whose business practices conform to this MAP policy, which Federal Ammunition believes will lead to the most success for its products and dealers.
Consequently, Federal Ammunition will impose the following restrictions on those who violate the policy set forth in this letter:
First Violation: Notice of Violation
Second Violation: Forfeiture of marketing funds and coop for 60 days from the date of violation with the option to suspend the sale of Federal Ammunition product for a minimum of fifteen days.
Third Violation: Forfeiture of marketing funds and coop for 120 days from the date of violation with the option to suspend the sale of Federal Ammunition. product for a minimum of thirty days,
Fourth Violation: Forfeiture of all and any marketing funds and coop for a full year (12 months) from the date of violation with the option of suspension as an authorized Federal Ammunition dealer.
The above are the minimum restrictions to be imposed by Federal Ammunition, which reserves the right in its sole discretion to impose more severe restrictions, up to and including termination of all sales to any dealer in violation of this policy.
This is a unilateral policy of Federal Ammunition. No agreement is sought, nor will Federal Ammunition accept any retailer’s agreement with this policy. All Federal Ammunition representatives and personnel have been instructed that they are not to discuss this policy. Federal Ammunition requests that retailers not attempt to register complaints about other dealers or attempt to discuss their own pricing with Federal Ammunition. The company will not accept or discuss such complaints.
This policy does not apply to Non-MAP items, factory-sponsored closeouts, or items deemed by Federal Ammunition to be promotional in nature. Federal Ammunition’s Manufacturers Suggested Retail Price (MSRP) is not part of the MAP policy. The MAP policy is not intended to set maximum prices for dealers.
Federal Ammunition reserves the right to modify or the change this policy with written notice to the Dealers.
If you have any questions, please feel free to contact the sales department at moc.t1634929006ohsiv1634929006eh@se1634929006las1634929006.