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WOMMA Ethics Review Policy for Prospective Members

MEAP Application Deadline Extended to July 28, 2008

The Word of Mouth Marketing Association (WOMMA) holds the firm and resolute belief that every participant in word of mouth marketing has a vested interest in preserving its integrity. WOMMA is committed to developing, communicating and promoting best practices in the ethical conduct of word of mouth marketing throughout the industry.

WOMMA expects its members (and those companies applying for membership) to set an example of high ethical standards for word of mouth marketing. WOMMA members must adhere to the WOMMA Ethics Code of Conduct, Bylaws, and all other WOMMA policies, rules or regulations. In order to qualify for membership in WOMMA, applicants must not be engaged in word of mouth marketing practices that violate the WOMMA Ethics Code of Conduct (“Code”).

Accordingly, WOMMA reviews the marketing practices of all prospective members as part of the application process.

I. Initial Ethics Review

Prospective members must complete the WOMMA membership application, and agree to adhere to the WOMMA Ethics Code of Conduct, Bylaws, and all other WOMMA policies, rules or regulations.

Upon receipt of a prospective member’s application, WOMMA staff will conduct an initial review of the applicant’s word of mouth marketing practices. This evaluation will include, without limitation, a review of the company’s website, a review of WOMMA’s current list of known stealth marketers in order ensure that the applicant is not on such list, and an internet search. If this initial evaluation process does not raise concerns, and the applicant meets all other criteria for membership in WOMMA, staff will recommend to the Board of Directors that the applicant’s application for membership be approved.

If the initial evaluation process uncovers any issues or concerns with respect to the prospective member’s word of mouth marketing practices, the membership application will be referred to the WOMMA Membership Ethics Advisory Panel (MEAP) for further investigation.

II. Referral to MEAP

The MEAP is responsible for investigating any concerns raised by the initial review of the applicant’s marketing practices and making a recommendation to the Board of Directors regarding the prospective member’s application for membership.

Upon referral to the MEAP, the Chair of the MEAP, in consultation with the CEO, shall review the concerns raised by staff to determine whether to call a meeting of the MEAP to consider such concerns. If the Chair determines that the concerns warrant such consideration, he or she shall call a meeting of the MEAP. If the Chair, in consultation with the CEO, determines that the concerns raised do not warrant such consideration, the prospective member’s application shall be submitted to the Board for approval.

If the matter is referred to the full MEAP, the MEAP shall determine whether the concerns raised by the staff warrant a full investigation. If the MEAP determines that the concerns raised do not warrant a full investigation, the prospective member’s application shall be submitted to the Board for approval. If the MEAP determines that the issues raised by staff warrant a full investigation, the Chair shall notify the affected prospective member that a concern has been raised with respect to their application for membership, that an investigation will be conducted, and that the prospective member shall be advised of the results. Such notice shall be sent by overnight, registered, or certified mail, return receipt requested, to the prospective member at the address listed on the membership application. The Chair shall further notify the President and the CEO that an investigation is in process.

III. Investigation and Hearing by MEAP

  1. In conducting the investigation, the MEAP may obtain the assistance of WOMMA Staff and consult with WOMMA legal counsel whenever in its judgment such consultation is necessary or appropriate, subject to approval by the CEO. In addition, members of the MEAP (or their designees) may contact the prospective member, and other relevant parties to obtain additional information, as necessary.
  2. The MEAP may, but need not, conduct a hearing as part of its investigation; provided, however, that no adverse action shall be taken with respect to a prospective member’s application without having first afforded the prospective member the opportunity for a hearing before the MEAP.
  3. If the MEAP determines that a hearing is not warranted, the Chair shall notify the prospective member (by overnight, registered, or certified mail, return receipt requested) and the prospective member’s application shall be submitted to the Board of Directors for approval.
  4. If the MEAP determines that a hearing is warranted, the Chair shall notify the prospective member in writing, by overnight, registered, or certified mail, return receipt requested, of the time and place of the hearing, which hearing shall be held no less than thirty (30) days after the date of such notice.
  5. During the hearing, the prospective member shall have full access to the evidence against it, and shall have the right to: (i) appear at such hearing in person, with legal counsel if desired; (ii) rebut the information produced by the MEAP; (iii) present witnesses; and (iv) submit pertinent evidence.
  6. Prospective members failing to send a representative to attend a hearing shall be deemed to have waived their right to appear.
  7. The MEAP may have legal counsel present at any such hearing to advise on issues of procedure and, under appropriate circumstances, to present the MEAP’s position.
  8. A hearing may be postponed, recessed, or reconvened for good cause in the sole discretion of the MEAP.

IV. Recommendation

  1. Upon the conclusion of the hearing, the MEAP shall convene in closed session (provided, however, legal counsel and staff may be present as appropriate) to determine whether the prospective member has engaged in conduct for which membership should be denied.
  2. If the MEAP determines, by a two-thirds vote of the entire panel, that the prospective member has engaged in activity in violation of the Code, the MEAP shall recommend to the Board of Directors that membership be denied. Such recommendation shall be in writing and shall (i) set forth the MEAP’s findings; and (ii) whenever possible, include the steps that the prospective member can take to satisfactorily address the issues. The prospective member shall be provided with a copy of the MEAP’s recommendation, and shall be encouraged to complete the remedial actions outlined in the notification pursuant to a suggested timetable. At such time as the prospective member meets the requirements outlined in the notification, the prospective member may either submit a new membership application, or documentation demonstrating that the required steps have been taken.
  3. The prospective member shall have the right to have the Board of Directors review the MEAP’s recommendation.
  4. If no written request for review is received by WOMMA within thirty (30) days after the MEAP notifies the prospective member of its recommendation and the member’s right to a review, the decision shall be final.

V. Board of Directors Review

  1. If a request for Board of Director’s review is submitted, the Board, in a timely fashion, shall review the findings and recommendations of the MEAP based only on the evidence upon which the recommendation was based.
  2. The prospective member shall be given at least thirty (30) days’ notice of the time and place of the meeting at which the Board of Directors will consider the request. Such meeting may be held via conference call or other communications equipment by means of which all persons participating in the meeting can communicate with each other. The prospective member shall have the right to appear before the Board in person and/or be represented by counsel to present reasons why the MEAP’s recommendation should not be accepted.
  3. The Board of Directors may have legal counsel present at any such hearing to advice on issues of procedure and represent WOMMA’s interests in the disciplinary matter.
  4. Upon the conclusion of its review, the Board of Directors shall affirm, overturn, or modify the recommendation of the MEAP, and shall either accept or deny the prospective member’s application for membership. The action of the Board of Directors shall be final.
  5. The prospective member shall be notified of the Board of Director’s decision by overnight, registered, or certified mail, return receipt requested.