Effective Date: August 1, 2018
Subject: Trail Tech Retail Advertising Policy
Dear Valued Retail Partner:
Polaris Sales, Inc. D/B/A Trail Tech (the “Brand”) is committed to offering the highest quality products that consumers demand. Polaris Sales, Inc. owns the trademarks, various derivatives thereof, logos, copyrights to materials in its catalogs and other intellectual property associated with the Trail Tech brand (collectively referred to as “Marks”). Retailers are granted a limited, revocable, non-exclusive, non-transferable license to use the Marks in connection with any print or internet advertising associated with the Brand as long as they adhere to the Brand’s retail policies, including this Retail Advertising Policy (the “Policy”).
This Policy is designed (i) to generally support the Brand as a premium offering in the marketplace, (ii) to ensure all Retailers dedicate sufficient resources to promote the Brand, (iii) to enable Retailers to continue to employ knowledgeable sales associates to support the Brand, (iv) to enable Retailers to provide high quality pre-sale and post-sale services in support of the Brand, and (v) to otherwise promote activities that will enhance the desirability of the Brand. Each Retailer is free to independently set its resale prices for any product at its own discretion, but the Brand’s Policy establishes advertised price standards. This Policy has been adopted unilaterally by the Brand for the express purposes set forth above. Failure to abide by this Policy may result in penalties, including termination as a Retailer.
Retailers shall not publish a retail advertised price through Covered Advertising (defined below) that is less than manufacturer’s suggested retail price (“MSRP”), except from the period starting the day after Thanksgiving (“Black Friday”) through January 14th, Retailers are authorized to publish a retail advertising price that is up to fifteen percent (15%) below the MSRP.
“Covered Advertising” is defined as:
Print advertising such as newspapers, magazines, print inserts, outdoor billboards/signage;
Broadcast advertising such as radio and TV;
Direct advertising such as catalogs, flyers, newsletters, direct mail pieces/coupons, and broadcast
faxes, whether mailed, hand-delivered, or shipped in-box with product;
Electronic mail (e-mail) advertising. Any web pages that link from the e-mail are considered part of the e-mail advertisement;
Internet advertising such as banner, pop-up, and pop-under ads; and
Any website accessible to the public including traditional retailers, club membership sites, e-tailers,
vendors, portals, shopping sites, blogs, forums, auction sites, etc. Any “level” of a website above
the “shopping cart” is considered an advertisement. With respect to auction sites such as eBay, the
minimum acceptable bid/price must be no less than MSRP (15% from Black Friday
through January 14th) and the Retailer must be identified with its store’s trade name or “doing
business as” name in the auction listing.
The types of advertising not covered by this Policy are:
A website shopping cart as long as the product was placed by a customer who clicked or selected
“Order” or “Add to Cart” or a comparable command.
This Policy only relates to current active merchandise for the Brand. Any products deemed as closeouts are not subject to the discounting/advertising provisions of this Policy.
Retailers must not include statements or options related to the Brand which may lead consumers to perceive the offer of prices below MSRP from January 15th through Thanksgiving Day, or more than 15% below MSRP from Black Friday to January 14th. Statements such as “call”, “call for price”, “email to get the lowest price”, “guaranteed lowest prices”, “best offer”, “place in shopping cart to see our lowest price”, “at least x% off”, or other similar statements should not be used.
All packages (i.e., those that include a combination sale of both Branded products and products not covered under this Policy) must be advertised no less than the MSRP of all the products included in the package, except from Black Friday to January 14th in which case the packaged products must be advertised no less than 15% under the cumulative MSRP of all the products included the package.
The Brand must be specifically excluded from any type of store-wide sale or promotion unless the advertised discount is within the guidelines of this Policy.
From time to time the Brand may engage in promotions with respect to certain products included in the Policy. The Brand reserves the right to unilaterally modify or suspend the Policy with respect to these promotions.
Violations of this Policy shall be determined by the Brand in its sole discretion. The Brand’s designated Policy Administrator is the only person authorized by the Brand to communicate Policy updates, changes, or decisions. No other representative or agent is authorized to confirm compliance with, discuss, or amend this Policy. The Brand will not accept any communication from a Retailer who has violated this Policy regarding the violation or the willingness of the Retailer to bring its advertising into compliance with the Policy. The Brand also does not entertain complaints from its Retailers regarding another Retailer’s advertising or pricing practices.
Failure to abide by this Policy may result in penalties, including those specifically set forth below, as well as being terminated as a retailer for the Brand.
Retailer violations of the Policy will be addressed under this four step enforcement process:
- 1st Violation – Retailer will receive a written warning of the violation.
- 2nd Violation (or failure to correct prior violations) – Retailer will receive a 2nd written notice of the violation and a $1,500 fine charged to Retailer’s parts account. If the Retailer does not have a parts account, it will be subject to a thirty (30) day prohibition from purchasing the products involved in the violation and the Retailer’s rights to use the Marks will be forfeited and not permitted during this period.
- 3rd Violation (or failure to correct prior violations) – Retailer will receive a 3rd written notice of the violation and a $3,000 fine charged to Retailer’s parts account. If the Retailer does not have a parts account, it will be subject to a ninety (90) day prohibition from purchasing the products involved in the violation and the Retailer’s rights to use the Marks will be forfeited and not permitted during this period.
- Subsequent Violations (or failure to correct prior violations) – Retailer will receive a written notice of the violation and a $5,000 fine charged to Retailer’s parts account. If the Retailer does not have a parts account, it will be subject to a one (1) year prohibition from purchasing the products involved in the violation and the Retailer’s rights to use the Marks will be forfeited and not permitted during this period.
Retailers have the opportunity to have past violations of this Policy disregarded for purposes of computing the applicable penalty. In order to do so, a Retailer must remain in compliance with the terms of this Policy for 180 consecutive days, starting on the day immediately following the date of the Retailer’s last written notice of violation (e.g. if a written violation is dated 10/31/2017, Retailer will have previous violations of this Policy disregarded for purposes of computing the applicable penalty for any future violations as of 4/30/2018 if no additional violations occurred during that timeframe; if another violation occurs during this period, the 180 consecutive day period will start over).
Notwithstanding the above, based on the sole discretion of the Brand, a dealer who demonstrates multiple first violations of this Policy over a multi-year period may be subject to a permanent prohibition from purchasing the products and the Retailer’s rights to use the Marks will be forfeited and not permitted.
Limitations on Sales: The Retailer shall only sell the Brand at the Retailer’s store, Retailer’s mail order catalog, Retailer’s internet or auction site, or at retail booths operated by the Retailer at industry events such as races, rallies and shows.