This report outlines how compliance with promotional allowance regulations, particularly the Robinson-Patman and Sarbanes-Oxley Acts, is essential for effective MDF and Co-Op programs. The Robinson-Patman Act requires vendors to offer proportionately equal value to all competing resellers, even if program structures vary. The Sarbanes-Oxley Act mandates that reimbursements must meet specific criteria to be classified as marketing expenses rather than contra-revenue, affecting how they’re reported and taxed. Companies must align program design with legal and financial guidelines, ensure transparency, and maintain audit-ready documentation to avoid violations and maximize ROI.

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