Luxury Brands, LLC Unilateral Minimum Advertised Price (MAP) Policy

As an industry leading manufacturer and supplier of superior quality hair care products, Luxury Brands, LLC (“FHI”) strives to provide outstanding customer service and an excellent customer experience through a superb network of retailers, resorts, websites and international distributors.

Any person or entity that sells FHI products, including retailers, online dealers, warehouse distributors, auction sellers or auction sites, is a “Reseller”.  FHI’s Resellers make substantial commitments of time and investments of resources to deliver exemplary service through well trained and knowledgeable staff, detailed and informative product displays and other sales collateral. To support its Resellers' efforts and to assure the high level of customer service FHI strives to deliver; FHI has unilaterally adopted this UNILATERAL MINIMUM ADVERTISED PRICE POLICY (“Policy"). FHI has adopted this Policy unilaterally and because Reseller advertising practices that promote FHI products solely on the basis of price, and not product quality, service, and other factors, could be detrimental to Resellers' service and support efforts, and also FHI's position as a leading apparel brand. Such actions may be harmful to FHI's consumers and its brand, reputation, and competitiveness, and could allow some Resellers to unfairly take advantage of the marketing, service, or support investment of others. FHI believes that these practices are unfair and harmful to FHI, and its brand, and, importantly, the consumers, and therefore strongly discourages this conduct.

This Policy sets a Minimum Advertised Price (“MAP”) for all FHI products.  In order to remain in good standing, all Resellers must advertise FHI products at, or above, the MAP. 

Certain Resellers, including warehouse distributors, are responsible for monitoring to whom they sell FHI’s products and ensuring that the purchaser is not in violation of this Policy.  Failure to do so may result in a violation of this Policy. FHI, in its unilateral discretion, will not do business with any Reseller, as to the products covered by this Policy (“MAP Product”), if that Reseller intentionally violates this Policy, including but not limited to, if a Reseller advertises any MAP Product below its MAP price.

This Policy

Policy Guidelines

  1. Generally.       FHI reserves the right, in its unilateral discretion, to take action, including termination of its relationship and cessation of purchasing rights, with respect to any Reseller that violates this Policy. Violations of this policy shall be determined by FHI in its sole and absolute discretion. FHI will not accept any communication from a Reseller subject to this Policy regarding violations or future compliance with the Policy. 
  2. Notifications of Violation.
    1. First Violation. For a first infraction for failure to follow the Policy, FHI may send a  written warning identifying the violation.  Any Reseller who commits a first violation will be given five days from the date of the written warning (which may include email or other electronic delivery) to bring all of its advertisements of the MAP Products into conformity with the Policy.  If the first violation is not cured within the five day period, the Reseller will be deemed to have received a notice of second violation. 
    2. Second Violation.        For a second or subsequent violation of this Policy, FHI may send a written warning identifying the violation to any Reseller in breach of this Policy.  For any Reseller who commits a second, or subsequent violation, FHI may, unilaterally and without notice or further warning, terminate its relationship with and discontinue to sell MAP Products to the Reseller violating the Policy, in addition to any other penalties set forth herein .
  3. Enforcement.  The Policy will be enforced by FHI in its sole and absolute discretion.
  4. Independent Sales Prices.       FHI recognizes that any authorized FHI Reseller can make its own decisions to sell any FHI product at any price it chooses without consulting or advising FHI. FHI similarly has the right to make its own independent decision regarding dealers, distributors, and retailers it chooses to continue to sell to.
  5. MAP Products List.      FHI will maintain a MAP Products list of those products that fall within this Policy. The MAP Products list will be provided and updated from time to time.  FHI reserves the right to revise or modify this list at any time without notice. Each Reseller is responsible for monitoring the then current MAP Products list to ensure compliance with this Policy. Resellers may not advertise a MAP Product for a price less than the price identified in the MAP Products list.
  6. Advertisements.         
    1. All products in FHI’s then current line and or active catalog will have a retail price. Advertising a product for a price lower than the retail price next to current line and or active catalog products in any advertising will be viewed as a violation of this Policy. This Policy applies to all advertisement of MAP Products in any and all media, including, without limitation, coupons, flyers, posters, inserts, mailers, magazines, newspapers, catalogs, mail order catalogs, internet or similar electronic media including websites, blogs, forums, email newsletters, email solicitations, Twitter, Facebook, Etsy, Pinterest or similar social media sites, television, radio, and public signage.
    2. Resellers may not make any statements, displays or communications on its website that indicate, state, imply or suggest that a lower price may be found at the online check out, including but not limited to: “click here for lower price,” “see lower price in cart,” “add to cart for lower price,” “check cart for lower price,” or similar language. Such website features as “Click for price," automated “bounce – back” pricing e‐mails, pre‐formatted e‐mail responses, forms, automatic price display for any items prior to being placed in a customer’s shopping cart, and other similar features are considered to be communications initiated by the Reseller (rather than by the customer) and constitute “advertising” under this Policy. This Policy also applies to any activity which FHI determines, in its sole and absolute discretion, is designed or intended to circumvent the intent of this Policy, such as solicitations for group purchases’ and the like.
  7. Allowable Language.  It shall not be a violation of this Policy to advertise that the Reseller has “the lowest prices” or will match or beat its competitors’ prices, or to use similar phrases; so long as the Reseller does not include any advertised price below MAP and otherwise complies with this Policy.
  8. Authorized Advertisements.   In its discretion, FHI may permit Resellers to advertise MAP Products at prices lower than the MAP retail price. In such events, FHI reserves the right to modify or suspend the MAP retail price with respect to the affected products for a specified period of time.
  9. Rebates.          In its discretion, FHI may offer a direct manufacturer’s rebate to customers. In such events, it shall not be a violation of this Policy to advertise the availability of the manufacturer’s rebate, provided that (a) the advertisement include a MAP‐compliant price, the rebate amount, and the net price after manufacturer’s rebate in the same type size and style; (b) an asterisk is placed next to the net price after manufacturer’s rebate; and (c) the “*After manufacturer’s rebate” appears in the same area of the advertisement as the advertised product.
  10. Packages.        Where FHI products are advertised or promoted as part of a package that includes other products, it shall be a violation of this Policy to advertise the package at a price that: (a) is lower than the total MAP of the FHI product or (b) violates the letter or spirit of the Policy.
  11. Coupons.         It shall be a violation of this Policy to include in any advertising for FHI products any additional discount, coupon, gift card, or incentive (whether in the form of a special event, promotion, term of doing business or otherwise) that creates a price reduction, where the cumulative effect is to reduce the advertised price of any MAP Product below MAP. Section 11 shall not apply to any manufacturer’s rebate from FHI on FHI Products.  However, a Reseller’s general site-wide discount coupon, such as 10% off your purchase, will not be a violation of this Policy, as long as the coupon is not targeted at MAP Products.
  12. Call for Price.  It shall not be a violation of this Policy to advertise that a customer may ”call for price” or “email for price," or to use similar language, specifically with respect to FHI products, so long as no price is listed.
  13. Multiple Locations.     If a Reseller with multiple store locations violates this Policy at any particular store location, then FHI may consider this to be a violation by all of the Reseller’s locations.
  14. Right to Use FHI Intellectual Property.           To the extent any Reseller has the right to use FHI intellectual property, after a second or subsequent violation, FHI may notify a Reseller that its right to use FHI intellectual property has been suspended or permanently revoked, as decided by FHI in its sole discretion.
  15. Order Cancellations.   FHI reserves the right to cancel all orders and indefinitely refuse to accept any new orders from any Resellers following FHI’s verification that such Reseller has advertised any MAP Products at a retail price less than the then‐current MAP retail price established by FHI, or if Reseller has violated this policy in any other way.
  16. Penalties.        If a Reseller violates this policy, FHI has the right to impose penalties, in its sole discretion, including but not limited to loss of coop funds, a suspended right to purchase FHI products, and Reseller no longer being able to identify itself as an authorized distributor. 
  17. Advertised Prices Only.           The Policy applies only to advertised prices and does not apply to the price at which products are actually sold or offered for sale to an individual consumer. Resellers remain free to establish their own resale prices. The Policy also does not apply once an item is placed in a customer's "virtual shopping cart" on an internet website. Pricing that is associated with the end customer's intent to purchase is deemed the "selling price" and falls outside the Policy. Resellers remain free to sell products at any price they choose.
  18. Sales Representatives.            FHI’S SALES REPRESENTATIVES ARE NOT PERMITTED TO DISCUSS THIS POLICY OR MAKE ANY AGREEMENTS OR ASSURANCES WITH RESPECT TO FHI’S POLICY REGARDING RESELLER ADVERTISING OR PRICING. This also includes any consumer program or promotion that affects the below‐listed MAP Products.
  19. Enforcement.  The decision to implement and enforce this Policy is solely the unilateral act of FHI. FHI is not seeking agreement from any Reseller to adhere to the Policy.
  20. Confidentiality.           The terms of this Policy are confidential and may not be disclosed to any other parties. Modification. This Policy may be modified or amended at any time by FHI. If this Policy is modified or amended, FHI will post notice of the change with at least 30 days notice.
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