Purpose of this Policy
Modus Furniture International (“Modus Furniture”) has invested substantial resources and taken consistent actions over many years to successfully build the strength of its premium luxury brands (“Brands”), including selling our high-quality and premium furniture (“Products”) through retailers that display and demonstrate our Products and so educate our end users on the benefits of our Brands and Products and thereby benefit Modus Furniture and all our retailers.
To ensure that our end users will continue to experience that same Brand image and retail experience whenever our Products are marketed and sold, Modus Furniture will continue to invest substantial resources and is unilaterally adopting this Minimum Advertised Price Policy (“Policy”) for our Products sold in the United States. By your continued ordering of any Products, you acknowledge this Policy and any potential actions that Modus Furniture might take in response to violations. This Policy does not change any other terms and conditions of doing business with Modus Furniture.
Minimum Advertised Prices
Modus Furniture has determined that one element of the marketing and promotion of its Products that is inconsistent with and harmful to the Brand is an inappropriately low advertised online price. Therefore, this policy requires that any Advertising of a price of a Product by any retailer be at or above the minimum advertised price set by Modus Furniture. Such minimum advertised prices will be set unilaterally by Modus Furniture and Modus Furniture may change them in its sole discretion and from time to time. Retailers shall have 2 days to adjust their minimum advertised prices after any changes made by Modus Furniture. The minimum advertised price will be published on the Modus DTC price list and shared with retailers advertising products online.
This Policy does not apply to the actual resale prices of Products, which are and will continue to be determined unilaterally by each retailer.
For this Policy, Advertising is defined as any communication on any website of pricing information about a Product to potential customers. One-on-one, non-automated communication through online tools, such as chatbots, emails or texts, is not considered Advertising.
Modus Furniture has determined that the following actions by any Authorized Retailer will not be considered Advertising subject to this Policy:
- Displaying or otherwise making the final sales price accessible to the end user on the retailer’s website at checkout
- Displaying any pricing information for a Product and not using any Modus Furniture brand names, descriptions, product codes, UPCs, SKU information, or any other information that, as determined by Modus Furniture unilaterally and in its sole discretion, would identify the product as a Product and so damage the Modus Furniture brand reputation
- Displaying any pricing information by a retailer that also significantly, as determined by Modus Furniture unilaterally and in its sole discretion, displays and demonstrates Product to end users in physical stores
Penalties for Violations of Policy
Modus Furniture will reasonably and unilaterally decide on the appropriate penalty for any violation of this Policy by any retailer. Such penalties may include at any time the immediate stop-shipment of Product, consistent with all other terms and conditions. In most cases, Modus Furniture expects to provide a warning and chance to cure initial violations by a retailer.
Questions and Comments about the Policy
Any questions about this Policy should be directed to the Modus Furniture Policy Administrator (“Policy Administrator”). Only the Policy Administrator is authorized to communicate any decisions of Modus Furniture regarding the Policy.
Any complaints regarding the actions of any retailer can be sent to the Policy Administrator. The Policy Administrator might acknowledge receipt but Modus Furniture will unilaterally and in its sole discretion determine the appropriate next steps regarding all such information and will not communicate such decisions to the informing retailer.