People's Counsel Seeks to Require Individual Door-to-Door, MLM Agents To Be Licensed by PSC

The Maryland Office of People's Counsel has requested that the PSC require retail supplier's independent representatives, including individuals engaged in multi-level marketing, to be licensed by the Commission.

In comments on the customer protection rulemaking (RM 54), OPC said that, "Given the extent of reliance on door to door and telephone marketing, the Commission needs the ability to easily identify the independent representatives (including multi-level marketers) who are soliciting residential customers."

"These individuals are the ones who actually interact directly with customers and household members. Any deceptive verbal exchanges or actions are carried out by these representatives. While the suppliers are responsible, of course, for the actions of the marketers and independent representatives, it is difficult to identify and follow-up on actions of individual representatives without such identifying information. Furthermore, local consumer protection agencies in counties with peddler license requirements have noted problems with non-compliance with local laws and difficulty pursuing those individuals," OPC said.

"[G]iven the reliance on door to door and 'cold call' telemarketing, OPC believes there is a need for better oversight of these marketing agents," OPC said.

OPC recommended that the Commission license or register independent representatives of licensed energy suppliers.

Alternatively and at a minimum, suppliers should be required to provide a list of all independent representatives to the Commission as a condition of their licenses, and update it on a regular basis, OPC said.

As noted by OPC, the issue of whether to license individual supplier agents, including MLM agents, has been pending before the PSC for three years in Case 9245