Forums: Discussions for entrepreneurs and small business.

We sell lots of products online which we purchase from a number of vendors.  Lately, we have been getting several calls and emails from the manufacturers of these items, telling us we are violating the MAP pricing of the items and we have to raise our prices.  They also ask who we get our merchandise from.  We never signed any MAP agreements with our suppliers and I don't think I should be compelled to reveal our suppliers.  Do I have to provide this information or can I tell the manufacturers to take a hike?

While you should definitely discuss this request with your business's attorney, it is my understanding of the Consumer Goods Pricing Act that manufacturers or wholesalers cannot require a minimum retail sales price (it's called vertical price fixing). It is legal to set a maximum price, just not a minimum.

Best regards,

Molly Donaldson

I would work through your suppliers and let them deal with the manufacturers.