Hikvision MAP Policy

Publication Date: January 18, 2016
Effective Date: January 18, 2016

Hikvision is one of the world’s leading suppliers of video surveillance products and solutions (collectively, all products and solutions that we sell today or in the future are referred to in this bulletin as “Hikvision Products”). We are proud to associate with authorized dealers and distributors of our products who are willing to promote the sale of Hikvision products and protect the Hikvision brand reputation. To further our promotion of Hikvision products as premium quality products, we are unilaterally implementing this minimum advertised pricing policy (“MAP Policy”). This bulletin explains the terms and conditions of our MAP Policy.

   1. DEFINITIONS

1.1. “Advertising” refers to any written, printed or electronic communication intended to solicit sales of Hikvision Products to the end-user/consumer that appears in any form of public media including, without limitation, print, broadcast, recorded message, or digital or electronic formats, including on the Internet. Advertising includes, for example and without limitation, communications or materials that a Covered Seller or a third party at the Covered Seller’s direction: (i) sends by direct mailing or in catalogs; (ii) communicates by broadcast emails, group faxes, or text messages; (iii) displays on signs, flyers, posters, or banners including electronic banner advertisements or the equivalent; (iv) broadcasts as infomercials or the equivalent; or (v) displays on the Internet whether or not the Covered Seller also engages in the sale of Hikvision Products to consumers from the same or a different website and whether or not the websites are destination pages, portal websites, natural or paid search engine listings, social media websites, shopping websites, auction websites or the equivalent.

1.2. “Company Website” refers to www.Hikvision.com.

1.3. “Covered Seller” collectively means persons that fall within either of the following categories: (i) dealers, distributors, retailers and others to whom we directly sell Hikvision Products and who take title to Hikvision Products directly from us; and (ii) retailers or other purchasers that purchase Hikvision Products from persons that purchase Hikvision Products directly from us for purpose of resale and not for their own use.

1.4. “Effective Date” is the date that this MAP Policy is effective, as we may periodically amend it. In all cases, the Effective Date shall be at least 7 days after the Publication Date.

1.5. “Hikvision Products” collectively means any product manufacturered by or for us that we sell directly or authorize our dealers or distributors to sell whether the product is sold by us now or developed and introduced by us after the Effective Date.

1.6. “Manufacturer’s Suggested Retail Prices” or “MSRP” refers collectively to the retail price (before applicable sales taxes, shipping, delivery or handling fees) that we publish on our Company Website or otherwise suggest for Hikvision Products in any written or electronic communications. We may adjust the MSRP of any Hikvision Products in our sole discretion at any time.

1.7. Publication Date is the date that we first publish this, or any modified version, of this MAP Policy on our Company Website.

1.8. “Used Hikvision Products” collectively refer to Hikvision Products obtained through customer returns, customer trade-ins, demonstration units, or similar types of means and any Hikvision Products which we identify on our Company Website as discontinued.

   2. EFFECTIVE DATE

2.1. This MAP Policy applies to all Advertising that a Covered Seller conducts on and after the Effective Date and will continue in effect unless amended or repealed by us.

2.2. We will post this MAP Policy on our Company Website. All Covered Sellers are responsible for checking our Company Website to monitor changes in this MAP Policy.

2.3. This MAP Policy, as we may modify it at any time, shall apply to all Covered Sellers regardless of where the Covered Seller or the actual end-buyer is located.

2.4. We may discontinue or modify this MAP Policy in our sole discretion at any time. We will post updates regarding the status of this MAP Policy on our Company Website.

2.5. If we revise this MAP Policy, the Effective Date of the revised MAP Policy will be no less than seven (7) days after the Publication Date of the revised MAP Policy.

2.6. A Covered Seller may request that we send them electronic notice to a valid email address that they gives to us if we modify our MAP Policy, in which case we will endeavor to provide timely notice by email, but our failure to do so shall not relieve the Covered Seller of responsibility for monitoring our Company Website for updates to this MAP Policy.

   3. SCOPE

3.1. This MAP Policy applies to all Covered Sellers regardless of whether or not the Covered Seller conducts business at a physical place of business where a purchaser conducts a transaction and takes immediate possession of Hikvision Products for their personal use or conducts business through e-commerce websites that the Covered Seller or a third party owns or controls or otherwise.

3.2. This MAP Policy only applies to a Covered Seller’s advertised prices. By advertised prices, we refer specifically to Advertising that a Covered Seller conducts that mentions or displays specific prices for Hikvision Products.

3.3. We do not require Covered Sellers to display advertised prices in Advertising. However, if a Covered Seller chooses to do so, the Advertising must comply with this MAP Policy.

3.4. This MAP Policy does not address, restrict or limit the actual prices at which a Covered Seller chooses to sell Hikvision Products to its customers. This MAP Policy is not a solicitation or request on our part for any form of agreement from a Covered Seller pertaining to the price of Hikvision Products. We have not in the past, and will not now or in the future, ask a Covered Seller to enter into any mutual agreement or understanding with us, formal or informal, oral or written, which asks the Covered Seller to give up its right to set its own prices for Hikvision Products or any other goods or services.

3.5. This MAP Policy does not apply to Advertising that is displayed in a Covered Seller’s physical place of business. In other words, this MAP Policy does not apply to a Covered Seller’s prices that are posted inside the Covered Seller’s retail store and are observable only by customers who physically enter the retail store premises.

   4. POLICY

4.1. On and after the Effective Date, a Covered Seller’s minimum advertised prices appearing in Advertising of Hikvision Products may not be at less than 20% below the then-current corresponding MSRP.

4.2. All MSRP changes that we may make will be effective thirty (30) days after the date that we publish new MSRP prices on our Company Website.

4.3. In determining a Covered Seller’s compliance with this MAP Policy, we consider all price discounts, coupons, gifts and other free merchandise, and other type of incentives or promotional offerings (including, without limitation, any “gift with purchase” or “purchase with purchase”) that a Covered Seller chooses to offer in promoting Hikvision Products in Advertising. For example:

4.3.1. If Advertising features free merchandise, “gift with purchase,” “purchase with purchase” or similar types of incentives, we define the Covered Seller’s effective advertised price to be equal to the price shown in the Advertising of the Hikvision Products less the retail value of the gift, freebee or promotion.

4.3.2. If Advertising features free shipping, free handling or 0% tax, we define the Covered Seller’s effective advertised price to be equal to the price shown in the Advertising of the Hikvision Products less the actual value of the cost savings to the customer. Therefore, for example, if the MSRP for a Hikvision Products is $25,000 and Advertising features the Hikvision Products at $20,000 (or 20% below the then-applicable MSRP) and free shipping, the effective advertised price would violate the MAP Policy because it would be more than 20% below the then-applicable MSRP on the basis of the free shipping offer. Similarly, if Advertising features the Hikvision Products at $20,000 (or 20% below the then-applicable MSRP), with zero sales tax and applicable law requires the seller to collect a sales tax on the transaction, the effective advertised price would violate the MAP Policy because it would be more than 20% below the then-applicable MSRP based on the 0% sales tax offer. If Advertising features the Hikvision Products at $25,000 without sales tax, but with a flat fee of $22.50 fee for shipping and handling, then the effective advertised price is calculated as the actual advertised prices less the sum of (i) the difference between the $22.50 shipping and handling charge and the actual shipping and handling costs, and (ii) the difference between $0 sales tax and the actual sales tax under applicable law.

4.4. This MAP Policy does not apply to Advertising featuring Used Hikvision Products as long as the Advertising clearly and prominently states that the featured Hikvision Products are “used,” “discontinued,” “B-stock” or something equivalent that denotes that the units have been previously owned or not current models.

   5. POLICY VIOLATIONS

5.1. At our election and in our sole discretion, if we learn that a Covered Seller is violating, or has violated, this MAP Policy, we may take the action that we believe is appropriate under the circumstances which may include, without limitation, rejecting future orders placed by that Covered Seller for a specific, or indefinite, duration or terminating any distribution agreement that we have entered into with a Covered Seller.

5.2. We will notify the Covered Seller of the consequences of a violation by written or electronic communication. We do not represent that we will impose a penalty for every violation or impose identical penalties for the same violation.

   6. INTERNET AND WEBSITE STANDARDS

6.1. This MAP Policy applies to all Hikvision Products that a Covered Seller displays on any website regardless of whether the Covered Seller owns or controls the website. This includes third party shopping websites like eBay.com, amazon.com, craigslist.com, overstock.com, and others.

6.2. Covered Sellers are solely responsible for ensuring that all search engines with which they affiliate comply with the requirements of this MAP Policy.

6.3. Pricing that appears on any website is considered an advertised price and must adhere to this MAP Policy until the consumer purchasing the Hikvision Products places the Hikvision Products in the virtual shopping cart. Once the Hikvision Products enter the shopping cart, it is considered part of the check-out procedure and its display in the check-out process falls outside the scope of this MAP Policy. Consequently, a Covered Seller will violate this MAP policy by displaying advertised prices of Hikvision Products below our then-current MSRP anywhere on a website other than the shopping cart or check-out page.

    7. GENERAL ADVERTISING STANDARDS

7.1. Use of “call for best price,” “price too low to print,” “see price in cart,” “log-in for price,” “add to cart for lower price,” “check cart for lower price,” “mouse over for price” “call for a lower price,” “call for price,” or similar phrases or automated price quotation features in Advertising is strictly prohibited. The use of “e-mail for a lower price,” “click on” or “click through” buttons, or any similar buttons or automated price quotation features in Advertising on a website is also strictly prohibited.

7.2. Advertising may not contain any misleading, improper, inappropriate or unauthorized statements, photographs, artwork, descriptions or other material or information about Hikvision Products. Advertising must appropriately use the Hikvision designated trademarks in the exact format that we may indicate including displaying any registration symbols that we direct.

7.3. Advertising featuring Hikvision Products must clearly identify the Hikvision Products’ model name or number matching the model number and name appearing on our Company Website.

7.4. Covered Sellers must conduct Advertising and the sale of Hikvision Products in compliance with all applicable laws.

   8. ADDITIONAL DUTIES

8.1. Covered Sellers that purchase Hikvision Products directly from us and sell them to a retail account or other purchaser for purposes of the purchaser’s resale and not for the purchaser’s own use must (i) provide the purchaser with a copy of this bulletin, and (ii) notify us of the name of the retail account or other purchaser so that we may communicate directly with that retail account or purchaser including, among other things, informing them of changes in our MSRP, our Hikvision Products or this MAP Policy.

8.2. In selling Hikvision Products, a Covered Seller must make reasonable inquiry of the purchaser as to whether the purchaser is buying Hikvision Products for resale or for their own use. The duty to make reasonable inquiry is a duty to ask the purchaser if the purchaser is purchasing for resale or personal use and, when the purchaser’s response is that the purchaser is purchasing for resale, to notify us of the name of the retail account or purchaser. As long as the Covered Seller makes reasonable inquiry, a Covered Seller is not in breach of this MAP Policy if the purchaser’s response turns out to be false.

   9. ENFORCEMENT

We expect all Covered Sellers to comply with this MAP Policy. We will not discuss our decisions relating to the enforcement of this MAP Policy or negotiate the terms of our decisions with any Covered Seller, nor will we seek or accept assurances of any kind from any Covered Seller as to the Covered Seller's future conduct. No external complaints or reports are desired nor will they be used by us as a basis for enforcing this MAP Policy.

   10. QUESTIONS

If a Covered Seller has any questions about this MAP Policy, the questions must be submitted to us in writing and sent to our MAP Policy administrator at the following email address: MAPadministrator@hikvision.com. The administrator is the only person who is authorized to discuss the MAP Policy on our behalf.