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US Minimum Advertised Price Policy

Effective December 12, 2018

STATEMENT OF POLICY

E-Cloth, Inc. (“E-Cloth”) has determined that certain advertising practices undermine E-Cloth's trade reputation, brands, and premium image within the target consumer population and discourage E-Cloth’s Resellers (as hereinafter defined) from investing in the E-Cloth product lines and providing the best possible service and support to consumers. Accordingly, to protect the integrity of E-Cloth brands, E-Cloth has adopted this unilateral Minimum Advertised Price Policy (“MAP Policy”), which applies to all distributors, wholesalers, retailers, and other resellers who are recognized as Authorized Sellers, Authorized Resellers or Authorized Retailers by E-Cloth (collectively, “Resellers”) of E-Cloth products in the United States of America.

The MAP Policy applies to all products listed on the E-Cloth MAP Schedule (“Covered Products”). E-Cloth is solely responsible for establishing the minimum advertised price (“MAP”) for each Covered Product and will communicate the MAP for each Covered Product to all Resellers through the E-Cloth MAP Schedule.

This MAP Policy is not intended as, nor is it to be construed as, an attempt by E-Cloth to set advertised or resale prices or an agreement between E-Cloth and any Reseller or other party. In addition, E-Cloth will not accept any assurances of compliance with the MAP Policy from any Reseller. Each Reseller must independently choose whether to comply with the terms of this MAP Policy. This MAP Policy is not negotiable and will not be altered for any individual Reseller. This MAP Policy is strictly limited to advertised prices and does not affect the prices that Reseller may charge for Covered Products.

GUIDELINES

Although all Resellers are free to advertise and sell all E-Cloth products at any price they deem appropriate, it is a violation of the MAP Policy for a Reseller to advertise any Covered Product at a price lower than the MAP. Such advertisements include, but are not limited to:

  1. Offering coupons, discounts, reseller rebates, credits, or other inducements that, when applied, result in a net advertised price lower than the MAP, including through use of a storewide sale, promotional code, or other similar provision that can be applied to Covered Products.
  2. Bundling Covered Products with other products or services (whether made by or provided by E-Cloth or another entity) in a manner that implies below-MAP pricing for the bundled Covered Product.
  3. Strikeouts or strikethroughs of pricing information, “see price in cart,” or other statements that suggest that a lower price for a Covered Product may be found at the final online checkout stage. Direct or indirect attempts to circumvent this Map Policy also violate this MAP Policy; however, it is not a violation to advertise that a customer may “call for price,” “text for price,” or “email for price” as long as no price is listed and no automated call, text message, or “bounce-back” email is used in response. Additionally, offering free shipping, 0% holiday tax promotion, or free financing is not a violation of this MAP Policy.

For purposes of this MAP Policy, the terms “advertise” and “advertisement” include all promotional or pricing information displayed via any type of media, including, but not limited to, newspapers, catalogs, magazines, flyers, brochures, television, radio ads, billboards, signage (except signs displayed within a brick-and-mortar selling location), websites, blogs, social media, affiliate marketing networks/comparison shopping engines, Reseller-initiated text messages or emails to customers or prospective customers, mobile/smart phone applications, banner ads, online product ads, paid search ads, pay-per-click ads, display ads, mobile ads, product listing ads, sponsored links, ads in any other media in a digital format that is communicated or conveyed via the Internet, and any other marketing or promotional materials, whether displayed online or through broadcast or other media.

Notwithstanding the foregoing, pricing information displayed at the final online checkout stage of a transaction is not considered “advertising” under this MAP Policy. The “final online checkout stage” is the stage when the Covered Product is put into a shopping cart that contains the customer’s name, shipping address, email address, and payment information.

From time to time, E-Cloth may announce MAP holidays or other authorized promotions that are applicable to all Resellers, during which periods a Reseller that advertises a Covered Product in accordance with the terms of the authorized promotion will not be deemed to have violated the MAP Policy. E-Cloth will notify all Resellers of any such authorized promotions through direct communication or through the E-Cloth MAP Schedule.

POLICY ENFORCEMENT

  1. Although E-Cloth is not directing any Reseller to require that its customers comply with the MAP Policy, a violation of the MAP Policy by any such third party will constitute a violation by the Reseller.
  2. E-Cloth reserves the right to cancel any pending orders, restrict future orders, or suspend Reseller's account if E-Cloth reasonably believes:
    1. Reseller has violated the provisions of this policy; or
    2. Reseller intends to violate this policy.
  3. E-Cloth's MAP Policy Administrator is solely responsible for determining whether a violation of the MAP Policy has occurred, as well as determining appropriate sanctions.
  4. Waivers to this MAP Policy may be granted in E-Cloth's sole discretion by the MAP Policy Administrator in writing. E-Cloth Sales, Marketing, or other personnel are not authorized to modify or grant exceptions to the MAP Policy. In the event that the MAP Policy Administrator authorizes a waiver to the MAP Policy, Resellers must strictly adhere to the terms of the waiver letter. Deviation from the terms of a waiver letter is a violation of the MAP Policy.
  5. E-Cloth reviews the advertised prices of Resellers, either directly or via the use of third-party agencies or tools. Resellers are expected to provide reasonable cooperation in any E-Cloth investigations regarding possible MAP Policy violations. Hindering, obstructing, delaying, or otherwise failing to cooperate with a E-Cloth MAP Policy investigation is a violation of this MAP Policy.
  6. The MAP Policy will be enforced by E-Cloth in its sole discretion and without notice. Resellers have no right to enforce the MAP Policy. Violations of this policy may result in any of the aforementioned sanctions up to and including termination of our business relationship, as well as any available remedies at law.
  7. E-Cloth reserves the right to unilaterally modify, change, suspend, terminate, reinstate, or update the MAP Policy at any time with advance notice in its sole discretion. E-Cloth shall make any such modifications available to all Resellers. All questions related to this MAP Policy should be directed in email to compliance@e-cloth.com.