As part of a settlement with the Federal Trade Commission (“FTC”), NARPM® agreed to change its Code of Ethics and will not adopt, encourage its members to follow, or enforce any Code of Ethics provision relating to solicitation of property management work that does not comply with the FTC Consent Order.
- FTC Settlement Statement
- FTC Decision and Order
- FTC Complaint
- FTC Press Release issued by the Commission in this matter
Amended Article 9 and Standards of Professionalism:
Article 9: RELATIONS WITH OTHER PROPERTY MANAGERS
NARPM® Professional Members shall not knowingly or recklessly make false or misleading statements about other property managers or their business practices, or otherwise attempt to take business from other property managers by deceptive means.
STANDARDS OF PROFESSIONALISM
- 9-1 The Property Manager shall treat all property managers in an honest and professional manner and shall not knowingly engage in any practice or take any action against a property manager in an un-businesslike manner.
- 9-2 The Property Manager shall not knowingly interfere with other property managers’ contract rights, including by taking actions inconsistent with exclusive agreements that other property managers have with clients. This does not preclude the Property Manager from otherwise soliciting clients or making general announcements about their own services. For purposes of this code, a general announcement may be defined as a general telephone canvass or a general mailing or distribution addressed to all prospects in a given geographical area or in a specific profession, business, club, organization, or other classification or group. This code does not restrict fair and reasonable competition among property managers.
- 9-3 In the event of a controversy between Property Managers with different firms, the Property Managers/owner of firm shall submit the dispute to mediation prior to litigation.
- 9-4 Property Managers shall not use the work of competing management firms that are considered proprietary without the expressed written permission of the management firm.
NARPM® Antitrust Statement:
It is the policy of the NARPM® to comply fully with all antitrust laws. The antitrust laws prohibit, among other things, any joint conduct among competitors that could lessen competition in the marketplace. NARPM®’s membership is composed of competitors; they must refrain from discussing competitively sensitive topics, including those related to pricing (such as rates, fees, or costs), individual competitors or specific business transactions, or controlling or allocating markets. NARPM® shall not restrict members’ ability to solicit competitors’ clients. NARPM® shall not restrict members’ ability to advertise for business, provided the advertising is not false, deceptive or otherwise illegal.