Understanding promotional allowance program regulations can be a bear, but if you want to design a market development funds (MDF) or Co-Op program that your corporate legal team and finance department will love, understand them you must.
This Incentive Insights takes a look at how the Robinson-Patman and Sarbanes-Oxley acts affect your promotional allowance programs.
The Robinson-Patman Act requires that a seller offer all competing resellers similar programs in a proportionately equal manner. But how does the legislation define key points in this statement such as “competing resellers” or “offer”?
Sarbanes-Oxley (SOX) regulatory requirements address issues born out of the Enron and Worldcom scandals. A side effect of SOX is many marketers classify their reimbursement expenses as contra-revenue, which can show up as sales decreases when reporting revenue. A better solution is understanding how to categorize reimbursement expenses against SOX requirements.
Learn more when you read Incentive Insights: Promotional Allowance Program Regulations.
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