Koya Medical, Inc. Minimum Advertised Price (MAP) Policy
Effective June 1, 2021
Koya Medical, Inc. (“Koya”) takes great pride in its commitment to offering reliable, high quality products and exceptional customer support. Koya recognizes that advertising and sales practices that promote Koya products primarily on the basis of price could degrade Koya’s brand image, weaken customer support efforts, and damage the valuable goodwill Koya has developed in its trademarks.
To protect Koya’s brand image and goodwill, Koya has unilaterally adopted the following Minimum Advertised Price Policy (“Policy”) for all products sold under the Koya brand name (“Products”). Koya’s goal in establishing this Policy is to ensure that all Products are advertised, promoted and sold in a way that will maintain the integrity and reputation associated with Koya’s products and protect Koya’s brand image.
This unilateral Policy applies to all resellers of Products including those that advertise online (collectively referred to as “Resellers”). Koya is not seeking agreement from any Reseller to comply with this Policy. It is entirely within each Reseller’s discretion whether to comply or to not comply, however non-compliance may result in termination of business relationship between Koya and the Reseller. Koya reserves the right to cease supplying Products to Resellers, cancel orders, or take other actions against Resellers who violate one or more guidelines of this Policy. Policy Guidelines:
- This Policy applies to all forms of advertisements of Products, including but not limited to flyers, electronic and print mailers, brochures, coupons, telephone conversations or other oral sales pitches, newspapers, inserts, electronic media advertising such as e-commerce sites, websites, natural or paid search engine listings, social media sites, or the like.
- All Products must be advertised at or above the Minimum Advertised Price (MAP). The initial MSRP and MAP list product pricing is set forth in Schedule A, which may be amended or revised by Koya, from time to time, in its sole discretion. Products may be advertised at MSRP, MAP, or any price above either point.
- Resellers may not advertise a coupon, sale, promotion, or a discount for use with a Product, if said coupon, sale, promotion, or discount will lower the Product’s advertised price below the MAP. However, Resellers’ advertising may include discounts that reduce the advertised price of the Products to below MSRP, so long as the discounts do not reduce the advertised price of the Product to below its given MAP.
- Resellers may not advertise that it has “the lowest price,” “the best price,” or “will beat its competitors’ prices”, or to use similar statements in advertisements designed to circumvent the intent and spirit of this MAP Policy.
- Resellers may not advertise that a consumer may “call for price” or “email for price,” or use any similar language thereto in advertisements designed to circumvent the intent and spirit of this MAP Policy.
- Resellers may not advertise a Product online without listing the price of the Product to circumvent the intent and spirit of this MAP Policy.
- Resellers may not advertise a Product online without listing the components that a customer will receive. For example, for each Koya Dayspring™ System advertised and all accessories that a customer will receive in the order must be listed on Reseller’s website.
- Resellers may not generally “bundle” Products with free or discounted Products (whether made by Koya or another company). However, Resellers may include additional accessory products at no extra charge over the phone when necessary, but the giveaway cannot be advertised or featured online as a standard practice or part of a normal package.
- Resellers may offer free shipping on any Product, so long as the Product is advertised at or above the MAP.
- This Policy does not establish maximum advertising or sale prices. Resellers may advertise Products at any price above the MAP or MSRP.
- This Policy applies only to advertised prices and does not apply to the prices the Products are actually sold. Resellers may establish their own resale prices for all Products.
- This Policy applies to advertised prices in the United States.
- Koya reserves the right to advertise below the MSRP or MAP, from time to time, for the purpose of conducting price optimization studies. Resellers may advertise the same price points, in the same regions, during the same specified time frames in the optimization studies as Koya.
- Resellers may not advertise used units for sale. Resellers may sell used units if Resellers adhere to all federal, state, and local regulations for doing so, but used units may not be advertised.
- Koya reserves the right to update, revise, modify or discontinue this Policy and pricing structure at any time with no need for prior approval from its Resellers. Any revisions or adjustments are solely at the discretion of Koya.
If Koya determines, at its sole discretion, that a Reseller violates this Policy, Koya may unilaterally enforce consequences at its sole discretion. If a Reseller violates this Policy and Koya enforces a consequence, the Reseller shall have a period of 3 business days to cure the violation before the next consequence is enforced. Koya reserves the right to unilaterally take any or all of the following actions:
- 1st violation: Reseller placed on ship hold of 1 week on current or next order.
- 2nd violation: Reseller’s price increased by 5%.
- 3rd violation: Reseller’s authorization to advertise and sell Koya products through search engine marketing or other digital marketing tactics will be revoked.
- 4th violation: Reseller’s business relationship with Koya is terminated.
In the event that a Reseller violates the Policy and Koya terminates its business relationship with the Reseller, it is within Koya’s discretion to request the return of its Products as well.
MSRP & MAP SCHEDULE A
(1) MSRP and MAP represent Koya’s list price and minimum advertised price, respectively, and are not representative of the amounts a patient would pay for Dayspring after taking into consideration medical insurance benefits.