Air Knight Minimum Advertised Price Policy (MAP Policy)
In recent years, there has been a noticeable increase in the number of online resellers selling HVAC related products. As we see more of our authorized resellers utilizing this method to expand and promote their business, it has become clear to us that online reselling is here to stay. To protect the investment of our authorized resellers and Carrier Enterprise’s brand reputation, we have unilaterally adopted a MINIMUM ADVERTISED PRICE POLICY (“MAP Policy”) effective May 1, 2016.
Carrier Enterprise established this MAP Policy due to the fact that reseller advertising and sales practices that promote Carrier Enterprise products, primarily on the basis of price, could be detrimental to resellers’ service and support efforts and Carrier Enterprise’s competitive position. Carrier Enterprise believes that these practices are unfair and thus discourages such efforts. Carrier Enterprise also does not allow unauthorized sales of any Carrier Enterprise products online.
Carrier Enterprise has unilaterally established a minimum advertised price for its products. Pursuant to the policy, no authorized reseller may advertise or otherwise promote the products using the internet at a net price less than MAP. Unauthorized resellers of any of Carrier Enterprise’s products will be dealt with legally. For the purpose of the Policy, the “net price” shall mean the published or advertised price the reseller makes the Product available to its customers taking into account all discounts.
Each authorized reseller is responsible for their own compliance with this MAP Policy. Authorized distributors are also responsible for online resellers that they supply. If an authorized distributor is knowingly selling to a third party reseller that is non-compliant with the MAP Policy, both the distributor and the third party reseller will be held accountable for violations of the MAP Policy. Although authorized resellers remain free to establish their own prices, Carrier Enterprise will respond to violations of the MAP Policy generally as follows:
1) If an authorized reseller is determined to be in non-compliance with the Carrier Enterprise MAP Policy, Carrier Enterprise will notify that reseller in writing. The noncompliant reseller will have 10 days to bring themselves in compliance with the Carrier Enterprise MAP Policy. In addition, any authorized reseller known to be supplying the noncompliant reseller will also be notified.
2) If an authorized reseller continues to violate the Carrier Enterprise MAP Policy more than 10 days after being sent notice, Carrier Enterprise will respond by removing any and all rebates, incentives or discounts provided directly to that reseller. Carrier Enterprise, at its own discretion, may increase the wholesale price to that reseller by an amount deemed reasonable by Carrier Enterprise. Carrier Enterprise may also limit the supply of new product to the non-complying reseller. In addition, any authorized reseller known to be supplying the noncompliant reseller may also be subject to the same penalties.
3) If an authorized reseller continues to violate the Carrier Enterprise MAP Policy more than 10 days after being sent their second notice of non-compliance, Carrier Enterprise will respond by no longer selling to that reseller and terminating any relationship between Carrier Enterprise and the noncompliant reseller. In addition, any authorized reseller known to be supplying the noncompliant reseller may also be subject to the same penalties.
Carrier Enterprise’s Online Minimum Advertised Pricing for the Air Knight and Air Knight IPG unit is as follows:
Air Knight 5” 24V – $950.00 each not inclusive of installation
Air Knight IPG 7” 24V – $975.00 each not inclusive of installation
Air Knight 9” 24V – $975.00 each not inclusive of installation
Air Knight IPG 14” 24V – $1,000.00 each not inclusive of installation
Carrier Enterprise sales representatives cannot and will not discuss the unilateral MAP Policy with resellers outside of providing the terms of the policy and examples of compliant and non-compliant advertising. Questions regarding the policy should be submitted to [email protected]. In the absence of a response from Carrier Enterprise, the online ad placement is at the reseller’s own risk. The Policy is subject to change or be canceled at any time by Carrier Enterprise. Carrier Enterprise will provide notice of any change to the Policy.
Carrier Enterprise Internet Sales Policy
Carrier Enterprise is committed to delivering high quality products and services to our authorized distributors, dealers, and mechanical contractors. Our top priority is to assist our authorized distributors and/or dealers and/or contractors grow and improve the quality and volume of their businesses, while at the same time strengthening our business relationships with them and the customers.
Carrier Enterprise recognizes that the Internet has become a valuable tool for our authorized distributors, dealers, and contractors to provide a variety of important consumer information (i.e., product options and specifications, warranty information, other company and/or product details, etc.) and distributor/dealer and contractor support. The Internet is a tool that is becoming increasingly important within our industry as product-related websites have already become the preferred method of many consumers for conducting HVAC related products and brands and research on the various technologies and systems.
Carrier Enterprise, however, has become increasingly aware of companies who are violating Carrier Enterprise’s Policies prohibiting the sale of Carrier Enterprise products directly to consumers via the Internet and the violation of Intellectual Property Rights belonging to Carrier Enterprise as well.
Some examples include:
The unauthorized and improper use of Carrier Enterprise Intellectual Property on the Internet including its trademarks, logos, or insignia, other source or business identifiers, and copyrighted product images and materials.
The sale of Carrier Enterprise’s products via the Internet directly to consumers, either through websites operated by distributors/dealers/contractors and others, through Internet auction websites, or through similar online means such as EBAY, Amazon, Craigslist, Google, Yahoo, MSN, etc.
The operation of websites in a manner that gives the false impression that the website, or the manner in which Carrier Enterprise products are sold via the website, is approved, sponsored, or endorsed by Carrier Enterprise.
The unauthorized registration and use of domain names incorporating Carrier Enterprise’s trademarks and copyrights.
The unauthorized bidding on of keywords or any other online advertising incorporating Carrier Enterprise’s trademarks from all online advertising mediums so as to create “sponsored ads” to promote a company’s website as “factory authorized”.
The unauthorized incorporation and use of Carrier Enterprise’s trademarks as metatags in the coding of a company’s website so as to achieve a higher ranking in search engine results.
The unauthorized inclusion any of Carrier Enterprise’s products in any automated online shopping sites.
Carrier Enterprise Intellectual Property Guidelines
In response to the rapid emergence of these Internet-based concerns and to prevent consumer confusion that can result from improper or unauthorized use of Carrier Enterprise’s Intellectual Property, Carrier Enterprise has developed the following guidelines concerning Internet activities involving its products and intellectual property:
1) It is inappropriate and against Carrier Enterprise’s policy to offer for sale or to sell any Carrier Enterprise products direct to consumers over the Internet (i.e., without an in-house visit, inspection, sizing and installation by a licensed, qualified, trained HVAC professional), including by means of a distributor’s own website, a dealer website, a third party website, an auction website, or otherwise. Carrier Enterprise DOES NOT authorize or warranty any Internet-based sale of Carrier Enterprise products direct to consumers, and the sale of Carrier Enterprise products directly to consumers over the Internet is strictly prohibited. This policy is necessitated by the complexities associated with proper product specification selection requirements, professional installation and proper placement and handling techniques of Carrier Enterprise’s equipment in relation to the HVAC equipment and the wide range of variables and safety concerns that directly impact the actual and perceived performance of products.
2) Carrier Enterprise recognizes and supports the “traditional” business model for the sale of its products to consumers. Such sales are properly made directly through a personal home or office inspection and onsite evaluation of the application by an authorized, trained and licensed HVAC contractor. Carrier Enterprise will generate online sales leads and consumer inquiries from Carrier Enterprise’s own websites and online activities including an online Dealer Locator. Additional leads obtained via other marketing avenues such as tradeshows, trade journal articles and advertisements, will be distributed to distributors/dealers, or contractors as appropriate, for follow-up via our traditional business model.
3) ALL Carrier Enterprise PUBLISHED WARRANTIES ARE VOID FOR ANY PRODUCT PURCHASED DIRECTLY BY A CONSUMER OVER THE INTERNET BY MEANS OF AN AUTHORIZED DISTRIBUTOR’S/DEALER’S, OR CONTRACTOR’S OWN WEBSITE, A THIRD PARTY WEBSITE, AN ONLINE AUCTION OR RESALE WEBSITE, OR ANY OTHER WEB LISTING, IF SUCH PURCHASE IS MADE WITHOUT AN IN-HOME VISIT AND INSPECTION AND INSTALLATION BY A TRAINED, QUALIFIED AND LICENSED (IN APPLICABLE JURISDICTIONS) HVAC PROFESSIONAL AFFILIATED WITH THE SELLER.
4) If authorized Carrier Enterprise distributors and/or dealers and/or contractors want to provide a link from its website to Carrier Enterprise’s website, they may use a textual URL.