MDPPACPB Regulations

Page 22 of 127
22 
 
 
(c) 
The arrangement is time-limited, clearly documented, and not 
tied to retroactive rewards based on all-or-nothing targets. 
(4) Buyer Protections 
Buyers who believe they have been subject to exclusionary loyalty schemes 
may: 
 
(a) 
File a complaint with the Authority; 
 
(b) 
Seek a determination that the relevant clauses are unenforceable 
under this Regulation; 
 
(c) 
Request Authority assistance in accessing alternative sources of 
supply. 
 
18. Resale Price Maintenance 
(1)Prohibition: 
 No wholesale or retail licensee shall fix, impose, or dictate the resale price at 
which independent distributors, marketers, or retail stations sell products to end 
consumers. Licensees must not:  set a fixed resale price; impose minimum resale 
prices or pricing floors; use contract clauses or operational policies to restrict 
pricing freedom. 
(2) Freedom to Compete 
All independent distributors and retail outlets shall retain full freedom to set their 
own resale prices, including offering discounts or promotions, in accordance 
with the provisions of the Act and the market conditions. Any attempt to limit 
this pricing autonomy shall be deemed an anticompetitive restriction. 
(3) Prohibition of Direct and Indirect Price Controls 
The following are deemed unlawful: contractual provisions requiring the dealer 
to sell at a prescribed price or within a narrow price band; verbal or written 
directives, circulars, or operating manuals that mandate a resale price; threats, 
coercion, denial of supply, withdrawal of branding, financial penalties, or 
incentives designed to pressure dealers to adhere to a “recommended” price. 
(4) Permissible Recommendations  
The following may be permitted under Authority oversight:  
(a) non-binding recommended prices or suggested retail price guidance 
(SRPs), provided, dealers are clearly informed that such guidance is entirely 
voluntary, and no penalty, reward, or operational pressure is associated with 
adherence or deviation. 
 
19. Branded Franchise and Ancillary Restrictions 
   (1) Applicability 
This Regulation applies to all agreements between major oil companies (brand 
owners) and their franchisee or branded retail stations, including supply, 
franchise, co-branding, and site operation agreements within the downstream 
petroleum sector. 
(2) Permissible Branding and Quality Requirements 
It is recognized that oil companies may impose reasonable standards related 
to brand image, fuel quality, safety, and service levels on their franchisees. 
These may include: 
 
(a) 
Use of approved uniforms, signage, and station appearance;