Promotional Allowance Program Regulations

Understanding promotional allowance program regulations can be complex, but crucial, if you want to design a market development fund (MDF) or CO-OP program that your corporate legal team and finance department will approve.

For instance, many channel marketers design their MDF programs to fund sales and marketing efforts on a discretionary basis, which some might consider discriminatory. These programs are often viewed as another form of product discount or price reduction and are subject to price discrimination regulations, which means the program designer must understand the Robinson-Patman Act.

More recently, vendors have used MDF programs to fund other types of activities that might be classified as incentives, compensation, or because of the Enron scandal, even bribery.

Learn the regulations and what they mean for your business in this Insights Report.