left-caret

Client Alert

FTC Issues Final Petroleum Market Manipulation Rule

August 17, 2009

Michael P. A. Cohen and Mark K. Lewis

Effective November 4, the Federal Trade Commission will begin enforcing a new Petroleum Market Manipulation Rule under the Energy Independence and Security Act of 2007. The Rule states:

It shall be unlawful for any person, directly or indirectly, in connection with the purchase or sale of crude oil, gasoline, or petroleum distillates at wholesale, to:

(a) Knowingly engage in any act, practice, or course of business including the making of any untrue statement of material fact that operates or would operate as a fraud or deceit upon any person; or

(b) Intentionally fail to state a material fact that under the circumstances renders a statement made by such person misleading, provided that such omission distorts or is likely to distort market conditions for any such product.

16 C.F.R. § 317.3. Violations of the Rule are punishable by civil penalties up to $1 million per violation. Each day misconduct continues is a separate offense. 42 U.S.C. § 17304.

Click here for a PDF of the full text

Practice Areas

Energy


Get In Touch With Us

Contact Us