National Energy Marketers Association Publishes National Energy Marketing Standards of Conduct

The National Energy Marketers Association (NEM) has formally adopted and announced the National Marketing Standards of Conduct for energy marketers.

Link to NEM National Marketing Standards of Conduct

The National Marketing Standards of Conduct builds upon the work of NEM to develop and adopt a Consumer Bill of Rights in 2010 and a Network Marketing Code of Conduct in 2011.

As previously reported, the National Marketing Standards of Conduct notably include specific standards for network and relationship marketing companies and agents.

In particular, the Standards of Conduct require network marketing companies to establish and maintain, "a clear channel of accountability for the actions of [their] agents."

"State Public Utility Commissions have initiated inquiries to implement or revise existing standards for marketing to consumers in the retail energy marketplace. NEM's National Marketing Standards of Conduct were adopted to reflect its members' commitment to consumer protection and augment the important work of the state PUCs," NEM said.

"NEM members are honored to serve consumers and to endorse and implement these National Marketing Standards of Conduct, as well as ethical business practices that protect the consuming public," said Craig Goodman, President of NEM.

NEM's National Marketing Standards of Conduct sets forth business practices to form a common basis for doing business in the energy marketplace:

• Suppliers shall not engage in false, misleading or deceptive conduct or make false, misleading or deceptive statements or representations in dealings with consumers;

• Suppliers shall be responsible for the conduct of their agents;

• Suppliers shall utilize methods appropriate to the size and type of consumer when engaged in door-to-door, telephonic, electronic and network sales and marketing;

• Consumers will be provided with accurate information about products and services they are being offered;

• A supplier's agreement with a consumer shall include all material terms and be clear, plain and in a language understandable to the consumer;

• A consumer shall not be enrolled for competitive energy service unless s/he has expressed his/her consent to the Supplier to do so.