Code of Conduct for Gas Marketers
Rules Made under Part III of the Ontario Energy Board
1.3 This Code
1.4 Coming into Force
2. Standards and Principles
2.1 Fair Marketing
2.3 Information to be
Maintained by a Gas Marketer
2.4 Confidentiality of
2.5 Conditions in Offers
2.7 Contract Renewals
2.8 Transfers and Assignment
Consumer Complaint Resolution Process
2.10 Breach of this Code
In this Code, unless the context otherwise requires:
"Act" means the Ontario Energy Board Act, 1998;
"agency agreement" means a contract or arrangement under
which a consumer retains, as the consumer’ s agent, a person who carries on
the business of, or engages in, gas purchases, and "agency" has a
"Board" means the Ontario Energy Board;
"Code" means this Code of Conduct for Gas Marketers;
"consumer" means a low-volume consumer;
"consumer information" means information relating to a
specific consumer obtained by a gas marketer or its salesperson from a
distributor in the process of selling or offering to sell gas to the
consumer, and includes information obtained without the consent of the
"day" means a business day, not including weekends or
"Director" means the Director of Licensing appointed by
the Board under section 5 of the Act;
"distributor" means a person who owns or
operates a distribution system for the purpose of delivering gas to
"gas" means natural gas, substitute natural gas,
synthetic gas, manufactured gas,
propane-air gas or any mixture of any of them;
"gas marketer" means a person who is licensed under
Part IV of the Act and,
(a) sells or offers to sell gas to a low-volume
(b) acts as the agent or broker for a seller of gas to
a low-volume consumer; or
(c) acts or offers to act as the agent or broker of a
low-volume consumer in the purchase of gas;
and "gas marketing" has a corresponding meaning;
"in writing" means communication through writing,
facsimile, or any other means of communication considered legally binding in
the Province of Ontario;
"low-volume consumer" means a person who annually uses
less than 50,000 cubic metres of gas;
"manufactured gas" means any artificially produced fuel
gas, except acetylene and any other gas used principally in welding or
"marketing" for the purpose of this Code, means to
provide for a consumer’s consideration an offer, and is characterized by
door-to-door selling, telemarketing, direct mail selling activities, and any
other means by which a gas marketer or a salesperson interacts directly with
a gas consumer;
"offer" means a proposal to enter into a contract,
agency agreement, or any other agreement or combination thereof, made to an
existing or prospective consumer for the sale of natural gas;
"premise" means the building or portion of a building
that is provided with gas through a single meter;
"propane" means a hydrocarbon consisting of 95 per cent
or more of propane, propylene, butane or butylene, or any blend thereof;
"regulation" means a regulation made under the
"salesperson" means a person who is employed by or
otherwise conducts marketing on behalf of a licensed gas marketer, or makes
representations to consumers on behalf of a gas marketer for the purpose of
effecting sales of gas or entering into agency agreements with low-volume
"third party" with respect to a gas marketer, means a
person other than the gas marketer, and includes other gas marketers,
affiliates, consumers and other persons.
Unless otherwise defined in this Code, words and phrases
shall have the meaning ascribed to them in the Ontario Energy Board Act,
1998. Nothing in this code shall alter or affect the conditions of the
licence of a gas marketer. Headings are for convenience only and shall not
affect the interpretation of this Code. Words importing the singular include
the plural and vice versa.
1.3 Purpose of the Code
This Code sets the minimum standards under which a gas
marketer may sell or offer to sell gas to a low-volume consumer, or act as
agent or broker with respect to the sale or offering for sale of gas. The
Board may exempt a gas marketer from compliance with this Code, in whole or
in part, subject to such conditions or restrictions as the Board may
determine. From time to time, amendments may be made to this Code by the
Board in accordance with the Act.
1.4 Coming into Force
This Code comes into force on March 2, 1999.
2. STANDARDS AND PRINCIPLES
2.1 Fair Marketing
2.1.1 Nothing in or done under the authority of this
Code affects the obligation of a gas marketer and its salespersons to comply
with legislation and regulations pertaining to marketing, advertising and
business practices, including the Consumer Protection Act (Ontario),
Business Practices Act (Ontario) and the Competition Act
2.1.2 A gas marketer shall ensure that its salespersons
adhere to the same standards required of the gas marketer as set out in this
2.1.3 A gas marketer shall do the following when
marketing or making an offer to a consumer:
(a) immediately and truthfully identify itself to the
(b) clearly indicate that the offer is not being made
by a regulated distributor, and not seek to mislead or otherwise create
any confusion in the mind of a consumer about the identity of the
marketer, or about the trademarks of the regulated distributor or of
(c) not exert undue pressure on a consumer;
(d) provide sufficient time for a consumer to read
thoughtfully and without harassment all documents provided;
(e) not make any representation or statement or give
any answer or take any measure that is false or is likely to mislead a
consumer with regard to any term in an offer;
(f) provide only timely, accurate, verifiable and
(g) not make any verbal representations regarding
contracts, rights or obligations unless those representations are
contained in the written offer;
(h) ensure all descriptions and promises made in
promotional material are in accordance with actual conditions,
situations and circumstances;
(i) not use print that due to its size or other visual
characteristics, is likely to impair materially the legibility or
clarity of documents provided to consumers.
2.1.4 A gas marketer shall not request a distributor to
allow the gas marketer to supply gas to a consumer unless the gas marketer
has the permission of the consumer in writing to do so.
2.1.5 Where a gas marketer’ s marketing or advertising
contains representations concerning the nature, quality and price of any
distributor’ s service, the gas marketer shall take such steps as are
reasonable and appropriate to ensure that such representations are accurate
2.2.1 A gas marketer shall, when marketing, use the name
under which the gas marketer is licensed, and any reference to the name of a
salesperson in any advertisement shall identify the gas marketer for whom
that salesperson acts.
2.2.2 A gas marketer shall provide the following
information when marketing at a place other than a gas marketer’ s business
name in which the gas marketer is licensed;
gas marketer licence number;
telephone number of the gas marketer that may be
reached by the general public;
name of the salesperson; and
photograph of the salesperson, if marketing
2.2.3 A gas marketer shall have a mailing address in
Ontario and shall have a telephone number which may be reached by the
2.3 Information to be Maintained by a Gas Marketer
2.3.1 A gas marketer shall maintain a list of
salespersons who act for that gas marketer, and this list shall be provided
to the Director upon request.
2.3.2 A gas marketer shall maintain on file:
(a) a list of its customers;
(b) permission from each customer, in writing, to
submit a request to a distributor to allow the gas marketer to supply
gas to the customer;
(c) agreement from each customer, in writing, to
purchase gas from the gas marketer or for the gas marketer to purchase
gas as agent for the customer; and
(d) if different from the agreement, a copy of the
complete contract which the gas marketer has with each customer.
Confidentiality of Consumer Information
2.4.1 A gas marketer shall not disclose consumer
information (as defined in this Code) to a third party without the consent
of the consumer in writing, except where consumer information is required to
(a) for billing or market operation purposes;
(b) for law enforcement purposes;
(c) for the purpose of complying with a legal
(d) for the processing of past due accounts of the
consumer which have been passed to a debt collection agency.
2.4.2 Consumer information may be disclosed where the
information has been sufficiently aggregated such that an individual’ s
consumer information cannot reasonably be identified.
2.4.3 A gas marketer shall inform consumers regarding
the conditions described in clause 2.4.1 under which consumer information
may be released to a third party without the consumer’ s consent.
2.4.4 A gas marketer shall not use consumer information
obtained for one purpose from a consumer for any other purpose without the
consent of the consumer in writing.
2.5 Conditions in
2.5.1 An offer shall clearly indicate the time period
for which the contract is in effect, and any terms and conditions for
2.5.2 An offer shall clearly state the price, terms of
payment and if other terms such as:
the nature and amount of any other charges related
to the contract;
type and frequency of bills the customer will
how to make a complaint to or enquiry of the gas
how to access an independent customer complaints
rescission rights of the customer;
reasons for which the contract may be terminated;
whether the contract can be transferred or assigned
to another gas marketer;
are included, these must also be stated clearly in the
2.5.3 An offer shall contain clear statements as to the
intended start date for the contract and conditions under which the start
date may not be met.
2.5.4 A gas marketer shall provide the consumer with a
copy of the contract and/or agency agreement at the time the contract or
agreement is entered into.
2.5.5 An offer to a consumer shall indicate whether it
is being made with respect to specified premises for the time being owned,
occupied or controlled by the consumer.
A gas marketer’ s licence includes certain requirements
with respect to contracts. In the case of conflict between the licence
conditions and this Code, the licence conditions shall prevail.
2.6.1 A gas marketer shall not enter into any contract
with a consumer that is inconsistent with the offer made to the consumer and
leading to the contract.
2.6.2 A gas marketer shall not enter into any contract
with a consumer that has a term of more than five years.
2.6.3 Every contract which a gas marketer enters into
with a consumer shall include a condition that allows the consumer to
rescind the contract by giving notice in writing within 10 days after it is
entered into without the consumer being liable for any damages in respect of
(a) by personally delivering or mailing by registered
mail a written notice of rescission to a person and address specified in
the contract; or
(b) by sending a telephone transmission of a facsimile
of a written notice of rescission to a person and a telephone number
specified in the contract.
2.6.4 The licence holder shall advise a consumer of the
provisions of section 2.6.3 and provide the consumer with a telephone number
for receiving facsimile transmissions both upon entering into a contract
with the consumer and if the consumer provides verbal notice of a wish to
rescind the contract.
2.6.5 A gas marketer shall not enter into any contract
as the agent of a consumer within 10 days after being appointed as the
consumer’ s agent.
2.7 Contract Renewals
2.7.1 A contract that is renewed shall be consistent
with the requirements placed on contracts as a condition of the gas
marketer’ s licence and in accordance with this Code.
2.7.2 A gas marketer shall not renew a contract with a
consumer unless the original contract contains terms of renewal, and the
(a) receives an advance written notice of the renewal
no more than 120 days before the date of renewal; and
(b) has at least 30 days from the receipt of such
notice and prior to the date of renewal to cancel the renewal.
2.7.3 A contract with a consumer that is renewed shall
be consistent with the terms of the original contract, unless the consumer
gives permission in writing to implement the new terms.
2.7.4 Notwithstanding subsection 2.7.3, a gas marketer
is not required to obtain a consumer’ s permission in writing, if the terms
of renewal are limited to extending the contract for a period of one year or
less. If a contract is renewed for a period of one year or less, a change in
price may also be made without written confirmation of the consumer,
provided that the consumer is informed of the change in the advance written
notice of the renewal and is provided with the opportunity to cancel the
renewed contract within 30 days after receiving the first invoice showing
the new price.
Assignment, Sale and Transfer of Contracts
2.8.1 A gas marketer shall not assign, sell or otherwise
transfer the administration of a contract to another person who is not a
licensed gas marketer.
2.8.2 Within 30 days of any assignment, sale or transfer
of the administration of a contract to another licensed gas marketer, the
affected customer must be notified of: the new gas marketer’ s address for
service; the telephone number; and the consumer complaints resolution
process, if these have changed.
2.9 Independent Arms-Length Consumer Complaints Resolution Process
2.9.1 A gas marketer is required to attempt to resolve
all consumer complaints and inquiries before referring a customer complaint
or inquiry to any independent, arms-length consumer complaints resolution
process specified as of a condition of the gas marketer’ s licence.
2.9.2 A gas marketer shall inform its prospective
consumers in all written offers and contracts about the independent,
arms-length consumer complaints resolution process selected by the Board for
that gas marketer.
2.9.3 A gas marketer shall inform existing customers
about the independent, arms-length consumer complaints resolution process
specified by the Board at the time of renewal of any contract and at the
time a complaint is received by the gas marketer.
2.9.4 Should any consumer complain that a gas marketer
or its salespersons have engaged in any improper course of conduct while
marketing, the gas marketer shall investigate the complaint and take all
appropriate and necessary steps consistent with the independent arms-length
consumer complaints resolution process specified by the Board.
2.10 Breach of this Code
2.10.1 Under section 52 of the Act, a gas
marketer’ s licence can be suspended or revoked if the licence holder does
not comply with this Code as issued and amended by the Board from time to
time under Part III of the Act.
2.10.2 A breach of this Code may occur in the course of
inducing a person to enter into an offer, even in the absence of a contract.