Overview:

Arlo’s Minimum Advertised Price (“MAP”) Program is designed to support Arlo Authorized Resellers to maintain the long-term strength of Arlo brand equity by assisting partners to engage in advertising that best conveys to customers the value of Arlo’s products. Advertised pricing of covered products must comply with this policy in order to be eligible for marketing funds. Arlo will not allow Arlo marketing funds to be used for advertisements that do not comply with this policy.

The Arlo MAP policy, described in detail below, will allow Arlo Authorized Resellers to profitably market and effectively promote the value of Arlo products. Each reseller is free to set and negotiate with its customers the actual resale price for any covered product.

Minimum Advertised Price (MAP):

The MAPs for Arlo products are the Arlo Suggested Retail Prices for those products and will be listed on the Arlo MAP Product Price List published www.arlo.com/map-policy.

Applicability:

Arlo’s MAP policy applies to advertisements of any resellers and distributors who resell and distribute Arlo covered products and are eligible for Arlo marketing funds. Each reseller is solely responsible for compliance with this policy.

Covered Products:

Any product listed on the Arlo MAP Product Price List is subject to the terms of this policy.

Conventions and Requirements:

General Pricing Convention:

To meet resellers pricing convention Arlo may allow the advertised price of a covered product to deviate by from the MAP policy product or bundle price.

Bundle Conventions:

All bundles must be advertised at the cumulative MAP price of the covered products. If a covered product is bundled with a non-Arlo product, the bundle price must be at or above the MAP price of the covered product. The advertisement cannot state or imply that the Arlo covered product is free or discounted in any way. Bundling should not be used to “hide” discounting of covered products.

Arlo Model Number Labeling Convention:

All ads for Arlo covered products must clearly state the Arlo model number for all Arlo covered product. In the case of a bundle, all products (Arlo, non-Arlo) must include a model number for all other products, if the price of the product is included in the bundle price. A reseller is exempt from this convention if:

1. The reseller has a formal policy that prohibits showing the manufacturer model number and the policy is applied uniformly to all competitive products.
2. The reseller regularly provides the Arlo MAP Policy Director with a cross reference table of the Arlo reseller part numbers (send to marketplace.enforcement@arlo.com).

Applicable Advertising:

This MAP Policy will apply to all Advertisements (as defined below) of MAP Product(s) by a Reseller, including, without limitation, in-store, out of home, print, and online.

1. Print advertising such as newspapers, magazines, and multi-page inserts.
2. Broadcast advertising such as radio, TV, and podcasts.
3. Direct advertising such as catalogs, flyers, newsletters, and direct mail pieces. This applies to any piece whether, mailed, hand delivered, or shipped in-box with product.
4. Electronic mail (e-mail) advertising. Any web pages that link from the e-mail are considered part of the e-mail advertisement.
5. Internet advertising such as banner, pop-up, and pop-under ads.
6. Any web site accessible to the public including traditional retailers, club memberships sites, e-tailers, vendors, portals, shopping sites, auction sites, etc. Any “level” of a web site above the “shopping cart” is considered an advertisement.

Other:

At no time during this MAP Program may the Reseller make any statements or other indications on its website in connection with any MAP Product(s) that indicates or implies that a lower price may be found at the online checkout stage, including, but not limited to, the following:

• “Click here for lower price”
• “See Price in Cart”
• “Log-in for price”
• “Add to Cart for Lower Price”
• “Mouse over for Price”
• “Email for a better Price”
• “Call for Lower Price”, or “Call for Price”

MAP products advertised may not include any promotional allowances (rebates, coupons, free premiums, reward program offerings, etc.), except for Arlo authorized promotions.

This MAP Policy does not apply to any reduced price that a Reseller wishes to place within a purchaser’s online shopping cart as a final stage of an online purchase(s), so long as the end user enters the final state on his/her own without any reference on the website that lower price will be found at the final purchasing stage.

Used Equipment:

Used equipment can be advertised below the designated MAP so long as the Reseller clearly and prominently discloses that the product is “used equipment.” Arlo defines used equipment as product obtained by the Reseller through customer return, or exchange.

Monitoring and Enforcement

Arlo may engage in monitoring of advertised prices of MAP Products, either directly or via the use of third parties, but Arlo will unilaterally be responsible for enforcing this policy.

Non-Compliance with MAP Policy:

If an advertisement for a covered product does not comply with this policy, then the reseller will be subject to terms outlined below. Arlo will not differentiate between intentional, negligent, and accidental violations when enforcing this MAP policy.

Level 1:

Arlo will issue a Level 1 violation notice to the reseller.  The reseller will have 72 hours to correct the violation.

Level 2:

Arlo may suspend marketing funds tied to the SKU(s) in violation for 30 days on a forward-looking basis – subject to Arlo’s national promotion calendar. Marketing funds include price promotions, hard dollars, accruals, and trailing credits

If the Level 2 violation is not corrected within 72 hours, a Level 3 violation occurs.

Level 3:

If the violation is not corrected within one (1) week, Arlo may a) suspend marketing funds tied to the SKU(s) in violation for 90 days on a forward-looking basis and b) prohibit Reseller’s access to Arlo SKU(s) in violation for the same 90 days – both a) and b) actions are subject to Arlo’s national promotion calendar. In addition, a Level 4 violation occurs.

Level 4:

Arlo will reach out to Reseller to directly discuss the ongoing MAP violations. Arlo may determine that Reseller will no longer have access to the Arlo SKU(s) and the product family of the Arlo SKU(s) for an indeterminate time, and if the violation is not corrected within 15 days, a Level 5 violation occurs.

Level 5:

Arlo will issue a final warning. If the violation is not corrected within 15 days then marketing funds may be suspended indefinitely and the violating account placed on a “do not sell” list.

Each violation with respect to a MAP Product will remain on record for one (1) year following the reseller’s last violation for that product(s).

Changes to Policy

Arlo’s Map Policy Director is the only person authorized by Arlo to communicate MAP policy updates, changes, or decisions. No other Arlo representative or agent is authorized to confirm compliance with, discuss, or amend this policy. Arlo will not communicate with any reseller regarding another reseller’s advertising practices.

Arlo may change prices, change policy, cancel policy, and add or delete covered products at any time.

Questions regarding Arlo’s MAP policy should be in writing and submitted to:

Arlo Technologies, Inc.
MAP Policy
3030 Orchard Parkway
San Jose, CA 95154
marketplace.enforcement@arlo.com