e060316 Can inspectors encourage other inspectors in their area not to use pricing as a competitive tool?
Identifier: e060316
Date: 01/05/2006
Question
In light of 1. of the CoE, "Inspectors shall avoid activities that appear to compromise professional independence," is it acceptable to work in my local area to encourage other inspectors not to use pricing as a competitive tool, but to rely on their professionalism to sell their services. I would not try to set prices, but try to influence others in the profession through educational efforts, such as our Chapter magazine, etc.
Response
The provision of the Code addressing professional independence does not really apply to your question. In the context of the Code, professional independence means freedom from the improper influence of the inspector, caused by potential conflicts of interest that could result in a lack of objectivity or inspection integrity. The Code of Ethics does state that "Inspectors shall avoid activities that may harm the public, discredit themselves, or reduce public confidence in the profession." There are many dos and don'ts regarding when and how competitors can generally discuss pricing of services. These guidelines are beyond the purview of the Code of Ethics Committee. An improper discussion can result in substantial penalties. Therefore, unless legal advice is obtained, such discussions are discouraged, despite the best of intentions.