North American Power terminated its multilevel marketing operation, effective immediately. The energy supplier announced the shutdown without warning, disabling all referral platforms and ending affiliate recruitment.
Independent representatives can no longer sign up new customers or recruit additional sales associates. The company sent an email to affiliates with limited details. Representatives will continue to collect residual payments on customers they previously referred. Any pending enrollments that processed will still earn commissions. Those who qualified for the company's "Free Energy" benefit retain it as long as they maintain eligibility.
The company offered no public reason for discontinuing its affiliate program. Its official statement called the move an "extremely difficult decision" following "thoughtful analysis, discussions, and soul-searching." No further elaboration was provided. North American Power also shut down direct representative support, directing affiliates to send questions via email without indicating whether responses would be provided.
The abrupt termination follows a period of significant legal pressure. Two class-action lawsuits were filed against the company in recent months. Both complaints alleged North American Power systematically overcharged its customers.
Peggy Zahn initiated one of these lawsuits in October 2014. Her complaint accused North American Power of operating a "classic bait-and-switch deceptive marketing scheme." The lawsuit stated the company lured Illinois consumers with initial teaser rates, which were advertised as lower than local utility prices. After customers switched providers, the company allegedly raised prices significantly. The complaint claimed thousands of consumers ultimately paid considerably more for their energy than they should have. A second civil case against the company made similar allegations of customer overcharging.
These lawsuits posed a serious threat to North American Power. Class actions alleging widespread consumer fraud carry substantial financial liability. Federal regulators, particularly the Federal Trade Commission, have increased scrutiny on direct selling operations that blur the distinction between legitimate product sales and recruitment-focused schemes. An energy supplier running a compensation plan with minimal verifiable retail sales, while simultaneously facing accusations of consumer fraud, created an untenable legal position.
Earlier reviews of North American Power's structure pointed to several issues common in operations that struggle with regulatory compliance. The company made no clear separation between its retail customers and its recruited affiliates. Individuals could join as "customers" without recruiting anyone, yet the compensation plan treated them the same as those actively building a downline. This structure effectively minimized the importance of true retail sales, which regulators emphasize as a hallmark of legitimate direct selling models. The absence of a robust retail component often indicates an unlawful pyramid scheme where income primarily derives from recruitment rather than product sales to end-users.
Eliminating the affiliate program does not resolve the existing lawsuits. But it removes a major area of vulnerability for the company. Without an active multilevel marketing operation to defend, North American Power will concentrate its legal resources on settling or fighting the overcharging allegations. The company no longer needs to simultaneously defend the legitimacy of its compensation structure, a complex and often costly legal battleground.
For the thousands of independent representatives who joined North American Power expecting ongoing commissions and recruitment bonuses, the sudden shutdown means these income streams have ceased. They will receive payments on sales already made, but the business opportunity itself no longer exists. The company's continued silence on the specific reasons for this move leaves many questions unanswered for its former affiliates and the broader energy retail market.