Galanz Americas Limited Company. Minimum Advertised Price Policy (“MAP”)

Effective Date: 11/1/2019

Galanz Americas Limited Company (Galanz) invests in developing the competitiveness of its brand and, in particular, establishing its products in the United States market as premium products with premium consumer features and benefits. We believe our success is dependent in large part upon customer loyalty and brand name value. Our customer loyalty and brand name value are maximized when our high-quality products are marketed, sold and serviced by knowledgeable salespeople with the resources to provide quality service.

In recognition that the success of Galanz relies on the success of our authorized sellers, we created this policy regarding the pricing of our Major Appliance and select Small Kitchen Appliances (the “Policy”) to protect their ability to provide the highest level of service without having to worry about those unauthorized retailers who may gain a “free ride” from their efforts.

This MAP policy applies only to authorized U.S. resellers’ advertised prices and does not affect any reseller’s sole right to establish its resale prices. The Policy is not a contract or agreement, or an offer to form a contract or agreement. Galanz does not ask for, and will not accept, any agreement about an account’s compliance with this Policy. This Policy simply describes the manner in which Galanz chooses, in its sole discretion, to sell its products.

1.    Policy Communications: Any and all questions or requests for information regarding the application or interpretation of this Policy must be directed to Please note that your sales representative and other Galanz employees are not authorized to discuss any aspect of this Policy with you. This Policy document is provided for information and reference only.

2.    Applicable Activity:This Policy applies to all advertisements of covered Galanz products (such products defined below) in any and all forms, including but not limited to TV, print, radio, internet ads, social media ads, direct mailers, e-mail, flyers and brochures. This Policy applies to all direct accounts of Galanz as well as any indirect or “downstream” purchaser. Recipients of this Policy are responsible for ensuring compliance with this Policy from their accounts (e.g. dealers) and affiliated companies (individually and collectively “Third Parties”). A violation of this Policy by any Third Party will be deemed a violation by recipient and will subject recipient to the recourse schedule set forth in Section 3. This Policy also applies to any online and offline activities. This MAP policy does not apply to entire store wide or department wide promotions, in-store displays, banners and price markings, or direct quotations to customers.

3.   Recourse:Advertising any product covered by this Policy (individually and collectively, “MAP Products”) below the minimum price listed in the Schedules to be issued by Galanz from time to time (the “MAP price”) will result in Galanz taking the following unilateral actions unless such violation is determined by Galanz to be a mistake, error or due to causes beyond the control of retailers:

  •  First Violation: Seller will be notified in writing of the violation, and have 48 hours to adjust the pricing or remove the item in question.
  •  Second Violation: Seller’s marketing funds for the affected product category for the previous three months will be withheld at Galanz’s discretion.
  •  Third Violation: Galanz reserves the right to de-authorize the retailer for the affected product category, and the entire product line if violations are recurring.
  • lation will be treated as separate.

A product category is defined as Galanz Major Appliances, or small kitchen appliances, including Countertop Microwave Ovens and Compact Refrigerators. This Policy does not restrict, coerce or force a retailer to charge a particular price for any Galanz Product. Each vio

4.   Guidelines for Minimum Advertising Price

  •   All advertising for Galanz products that includes pricing must clearly state a price equal to or greater than the MAP price.
  •   Netting of applicable discounts such as instant rebates or global promotions is allowed.
  •   Galanz specified Model numbers must be shown when advertising prices or discounts for Galanz products.
  •   Retailers may strike-through a price which is above or equal to the Galanz’s Suggested Retail Price (“MSRP”). Utilizing point systems that correspond to the actual currency or the selling price is a violation of this Policy.
  •   Promotional codes which reflect actual currency or discount values are violations of this Policy.
  •   Non-price Offers featuring bundles, delivery, financing and installation (individually and collectively “Services”) with Galanz products may be used; all standard Policy guidelines apply to these offers.
  •   If the value of the Services is not stated within the advertising, the advertising must show a price no lower than the MAP price for the Galanz product.
  •   If the cost of the Services is stated within the advertising, the advertising must show a price no lower than the MAP price for the Galanz product which takes into consideration (i.e. adds in) the cost of the Services. In other words, the minimum advertised price for such bundle is the MAP price for the Galanz product plus the cost of the Services.
  •   Retailers may not show any “netted price” for bundled Services.
  •   Storewide or category events that involve all brands in any category may reference a “percent off,” cash equivalent premium or other value offer provided that discounts are applied consistently to all eligible products; such offers may be “netted” from the MAP price. This “percent off” is must be no greater than 10% in advertising.
  •   Discounts based on storewide or category events cannot be combined with other Galanz-offered discounts or “value add(s).”
  •   If a retailer wishes to bundle a Galanz product subject to this Policy with another Galanz product not subject to this Policy or with a third party product (collectively the “Other Product”) the minimum advertised price for such bundle must be the MAP price for the Galanz product subject to this policy plus the fair market value of the Other Product. Galanz in its sole reasonable discretion will determine the fair market value of such Other Product.
  •   Galanz may issue factory rebate programs. Any advertisement for factory rebate must include the rebate amount and the wording a “Factory Rebate” or “Mail-In Rebate.”
  •   Closeouts and Other-Than-New: Some appliances may be identified as Closeout by Galanz. When advertising these products with a price, they must contain “Closeout” or “While Supplies Last” in close proximity to the product. For product in a condition other-than-new must include “Refurbished”, “Reconditioned”, “Damaged”, or “Scratch and Dent” in close proximity to the product. Closeouts and Other-Than-New are not covered under the MAP policy.
  •   Specifically related to Internet/web-based adverting and sales solicitations, this policy does not apply to the “Final Checkout” transaction stage in the shopping cart. For purposes of compliance with this policy, “Final Checkout” in the cart means that portion of the Dealer’s website used by the customer to check-out and purchase Products prior to which the customer has either:
  • a. selected Products to place them in a shopping cart, and entered purchase information including name, credit card information, billing address, phone number and email address; or
  • b. selected Products to place them in a shopping cart and is actively logged into the web site, using the customer’s assigned password, as a registered user with the customer’s credit card information, email address, shipping address and billing address having been previously entered into and retained by the website, which in each case places the purchaser within the website’s encrypted security barrier that is not accessible by search “spiders” or otherwise searchable by specialized search engines.
  • Advertising a lower price in an online Shopping Cart before collecting all of the customer’s purchase information is considered a violation of this policy.
  • If any prices below MAP appear on any search engines as a result of any Dealer’s Shopping Cart or Checkout stage, it will be considered a violation of this policy.

Galanz reserves the right to change or discontinue this policy unilaterally at any time, with or without prior notice.