NVIDIA dictates Unilateral Minimum Advertised Price Policy

Posted on Tuesday, Jun 17 2008 @ 00:40 CEST by Thomas De Maesschalck
HardOCP dug up some dirt on NVIDIA, the site reports NVIDIA is attempting to control the price that is advertised to you via their Unilateral Minimum Advertised Price Policy (UMAP). Several major etailers like Newegg and TigerDirect have enrolled into UMAP, they can still charge you whatever they want for a GeForce card but they are forced to show the "minimum advertised price". To check the actual price you'll have to do a few more clicks.
If you went to TigerDirect towards the end of May you would have noticed that all of a sudden, pricing on almost all SKUs across the 9600 GT, 8800 GT, and 9800 GTX families were the same in their respective group. This was TigerDirect following the above policy in order to not have its supply of NVIDIA video cards cut off at the source. TigerDirect’s shopping cart implementation has changed greatly since then. And yes, even though NVIDIA is not directly selling to Newegg or TigerDirect they can impact whether or not they get NVIDIA GPU video cards. Newegg told NVIDIA to “go pound sand,” or at least that is how it was communicated to HardOCP.com, then when NVIDIA threatened to cut off marketing funds paid directly to Newegg, the company changed its tune and followed the policy.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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Re: NVIDIA dictates Unilateral Minimum Advertised Price Policy
by Anonymous on Tuesday, Jun 17 2008 @ 04:37 CEST
Seems like price fixing to me. Not that the Trade Commission under the current Administration would bother to investigate this...

Nvidia sure is making a bad name of itself now that it's in the driving seat in the marketplace. Is this showing their true colors, that they don't really care about the customer at all?