Federal Trade Commission	 1

Guide to Complying with 

Petroleum Market Manipulation 

Regulations

Federal Trade Commission
2	 Guide to Complying with Petroleum Market Manipulation Regulations
Federal Trade Commission	 1

Guide to Complying with Petroleum 

Market Manipulation Regulations

The Federal Trade Commission (FTC) staff prepared this guide to help you comply 

with the anti-fraud provisions of the Energy Independence and Security Act of 2007 

(EISA) and the FTC’s Petroleum Market Manipulation Rule. 

Section 811 of EISA authorized the FTC to issue regulations to prohibit manipulative 

or deceptive conduct in wholesale petroleum markets. The FTC’s Petroleum Market 

Manipulation Rule prohibits you from engaging in fraudulent or deceptive conduct 

(including making false or misleading statements of material fact) in connection with 

wholesale purchases or sales of crude oil, gasoline, or petroleum distillates. The Rule 

separately bans your intentional failure to state a material fact when the omission 

(1) makes your statement misleading and (2) distorts or is likely to distort market 

conditions for any product covered by the Rule.

Section 812 of EISA makes it unlawful for you to report false or misleading 

information related to the wholesale price of crude oil, gasoline, or petroleum 

distillates to a federal department or 

agency if (1) you are legally required to 

report the information, (2) you knew, 

or reasonably should have known, that 

the information was false or misleading, 

and (3) you intended for the false or 

misleading information to affect the 

integrity of the data compiled by the 

department or agency for statistical or 

analytical purposes with respect to the 

market for crude oil, gasoline, or 

petroleum distillates.

EISA and the Petroleum Market Manipulation Rule do not apply to retail sales of 

gasoline, diesel, or fuel oil, nor do they set wholesale prices for the covered products.

This guide summarizes the Rule, answers commonly-asked questions, and contains a 

copy of the Rule and relevant portions of EISA to help your business comply.

Nothing in connection with this Rule should be

construed to alter standards associated with

establishing that an act or practice is deceptive

or unfair in violation of Section 5 of the FTC Act.

EISA and this Rule are additional measures and

apply to certain conduct within or in connection

with wholesale petroleum markets.

Note on Section 5 of the FTC Act:
2	 Guide to Complying with Petroleum Market Manipulation Regulations

Penalties for Violating the Petroleum Market Manipulation 

Regulations

The FTC can sue violators of EISA or the Rule in federal court. The court can impose 

civil penalties of up to $1 million a day for each violation, in addition to other 

remedies available under the Federal Trade Commission Act, such as an order to stop 

the illegal conduct. In assessing any civil penalty, the court shall take into account 

factors such as the seriousness of the violation and the efforts of the violator to remedy 

any harm in a timely manner.

The Rule Prohibits Fraudulent or Deceptive Conduct

Section 317.3(a) of the Rule prohibits knowingly engaging in acts, practices, or courses 

of business – including making false or misleading statements of material fact – that 

defraud or deceive any person. Section 317.3(b) of the Rule prohibits intentionally 

omitting a material fact when the omission makes a statement misleading and distorts 

or is likely to distort market conditions for any covered product.

Under Section 317.3(a) of the Rule:

You may not 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.

Under Section 317.3(b) of the Rule:

You may not intentionally fail to state a material fact that under the circumstances

renders a statement you have made misleading, if the omission distorts or is likely

to distort market conditions for any covered product.

•	 False or misleading public announcements of planned pricing or output decisions

•	 False or misleading statements to federal,state, or local governments about current

inventory or refinery operating status

•	 False or misleading representations about the price or volumes of past transactions

to a private price reporting service

•	 Fraudulent or deceptive transactions designed to disguise the actual liquidity or price

of a particular asset or market for that asset

•	Intentionally omitting material information from a report,such as the operational

status of a refinery, terminal, or pipeline, that makes the report false or misleading

•	Intentionally omitting material information about refinery production from

statements to mislead others during an emergency

Examples of Conduct Prohibited By the FTC’s Rule:
Federal Trade Commission	 3

The two Rule sections set forth different standards for the intent you must have had 

when you acted. For violations of section 317.3(a), which covers overt fraud and 

deception such as outright lying, it is sufficient that you knew that your conduct was 

fraudulent or deceptive, or that you must have known that your conduct would create 

a serious risk of defrauding or deceiving another market participant. As a result, you 

will violate the Rule if you act with extreme recklessness and, in so doing, create a 

serious risk that your conduct would be fraudulent or deceptive. The Commission may 

rely on direct or circumstantial evidence to determine if you knew or must have known 

that your conduct created such a risk. By contrast, a violation of section 317.3(b) 

requires proof that you intended to defraud or deceive any person and that you 

intended to omit a material fact with the intent to make your statement misleading. 

Mistakenly transmitting false or misleading information to a price reporting service 

would not be sufficient to violate either section of the Rule. 

In addition, violations of section 317.3(b) require proof that the misleading omission 

distorts or is likely to distort market conditions for a covered product. Therefore, this 

section prohibits only those misleading omissions of material information that are 

likely to make market information less reliable.

Section 317.3(b) of the Rule 

applies if you voluntarily provide 

information – or are compelled 

to provide information by 

statute, order, or regulation – but 

intentionally fail to disclose a 

material fact that makes the 

disclosed information misleading. 

The Rule does not relieve you of 

any other legal obligation to 

disclose information.

The Rule does not prohibit 

mistakes, unintended conduct, or 

legitimate conduct undertaken in the ordinary course of business. The Rule is not 

intended to disrupt the flow of truthful information or to discourage good faith 

estimates. Uncompleted acts also do not trigger the Rule. For example, preparing false 

or misleading data for a reporting service but not actually transmitting it does not 

violate the Rule.

The Commission does not intend to second-guess legitimate supply and operational 

decisions, nor does it intend to set output or prices for covered products. The Rule 

does, however, prohibit false or misleading statements about supply, operational 

actions, output, or prices for covered products.

The Commission generally does not intend to

reach negotiations between two parties when

there is no broader dissemination of false or

misleading information. Fraudulent or deceptive

conduct in private contract disputes – such as

claims that a contract was entered into under

false pretenses or that a party had a pre-existing

legal duty to provide information to a counterparty – is more appropriately treated under

state law.

Note on bilateral negotiations:
4	 Guide to Complying with Petroleum Market Manipulation Regulations

Q: I operate an oil pipeline company that is regulated 

by the Federal Energy Regulatory Commission as an 

interstate common carrier. Is my company’s conduct 

covered by the Rule?

A: Possibly. Certain pipeline companies or their

activities may fall outside the coverage of the FTC

Act to the extent that they are acting as “common

carriers.” However, some pipeline companies and

their owners or affiliates are involved in many aspects of the petroleum industry. If your company,

or its owners or affiliates, engage in conduct in

connection with the purchase or sale of covered

products, you may be subject to the Rule.

Q: I am required to submit reports to a government 

agency. What if I make a mistake in the information 

that I provide?

A: Neither the Rule nor Section 812 of EISA

prohibits mistakes, and there is no liability

under either the Rule or Section 812 for good

faith estimates.

Questions & Answers

No New Conduct or Recordkeeping Requirements

The Rule does not require any new affirmative acts. Specifically, the Rule does not 

create a duty to supply product, to provide access to pipelines or terminals, or to 

update or correct information. The Rule also does not require you to disclose any 

price, volume, or other data to market participants, or to the market at large. In 

addition, the Rule does not require you to 

create, retain, or submit any information. 

As a result, the Rule does not impose any 

new recordkeeping requirements.

Who Must Comply

Any person – including, but not limited 

to, any individual, group, unincorporated 

association, limited or general partnership, 

corporation, or other business entity – 

currently subject to the Federal Trade 

Commission Act must comply with 

the Rule.

Although the FTC Act applies broadly, it 

does not apply, or applies only in part, to 

certain entities. These include:

•	 Banks, federal savings and loans,

and federal credit unions; and

•	 Common carriers – such as railroads

and pipelines, long-distance telephone

companies, and airlines – when they are

engaging in common carrier activity.

Indirect Involvement in Fraud May Trigger the Rule

The Rule prohibits direct and indirect fraudulent or deceptive conduct. As a 

result, the Rule prevents you from engaging in fraudulent or deceptive conduct, 

whether alone or through others. For example, if you are trading in a covered 

product, you cannot avoid liability under the Rule for preparing a fraudulent or 

deceptive report by having someone else file it.
Federal Trade Commission	 5

Covered Petroleum Products

•	 Crude oil existing (1) in liquid phase in natural underground reservoirs and that

remains liquid at atmospheric pressure after passing through separating facilities,

or (2) as shale oil or tar sands requiring further processing for sale as a refinery

feedstock

•	 Finished gasoline (including conventional,reformulated, and oxygenated blends)

•	 Conventional and reformulated gasoline blendstock for oxygenate blending

•	Jet fuels (including commercial and military specification jet fuels)

•	Diesel fuels and fuel oils (including No. 1, No. 2, and No. 4)

Other products are covered by the 

Rule if there is a sufficient nexus 

between the fraudulent or deceptive 

conduct involving those products 

and a covered petroleum product. 

For instance, renewable fuels and 

blending components are integral 

to the overall supply of finished 

motor fuels. Thus, manipulating 

purchases or sales of these products 

can affect transactions for a covered 

product and may violate the Rule.

Products Not Covered

•	Natural gas and other

non-crude refinery

feedstocks

•	Heavy fuel oils

•	 Commodity inputs,such

as corn and sugar, whose

predominant use is in

non-petroleum products

Questions & Answers

Q: An ethanol producer has a surplus of product. The 

producer falsely announces a shut-down of its plant to 

create a perception of a product shortage. Does this 

violate the Rule?

A: Possibly. The Rule prohibits fraudulent conduct

if it has a sufficient nexus with a covered product.

Ethanol is an important blending component for

gasoline, and manipulation of ethanol prices may

affect wholesale gasoline transactions.

Q: I own a gas station, and I pay a negotiated price 

based on the rack price for gasoline, which I then sell at 

my stations. How does the Rule apply to my business?

A: The Rule applies to rack sales, including negotiated purchases by wholesale customers like your

company. The Rule does not apply to your retail

gasoline sales at the pump.

Q: Our airline buys jet fuel from several different 

suppliers, and the fuel is delivered by the suppliers 

directly to our airplanes at the airport. Are these sales 

covered even though the jet fuel will not be resold?

A: Yes. Bulk purchases or sales of jet fuel are

covered by the Rule, even if the fuel is not resold.
6	 Guide to Complying with Petroleum Market Manipulation Regulations

The Rule Applies to Wholesale Transactions

The Rule applies to fraudulent or deceptive conduct in connection with the purchase 

or sale of crude oil or jet fuel at any level of trade. The Rule also applies to the 

purchase or sale of gasoline or petroleum distillates (other than jet fuel) at the terminal 

rack level and upstream of the terminal rack level.

The Rule does not apply to retail sales of gasoline, diesel fuel, or fuel oil 

to consumers.

The Rule also Applies to Conduct 

“in connection with” Wholesale 

Transactions for Covered Products 

The Rule applies to fraudulent or deceptive 

conduct “in connection with” wholesale 

transactions for covered products, including 

conduct that directly or indirectly affects a 

transaction for a covered product – that is, 

the purchase or sale of crude oil, gasoline, 

or petroleum distillates at wholesale. The 

Rule prohibits fraudulent or deceptive 

action whenever there is a sufficient nexus 

between the action and the purchase or sale 

of a covered product. 

The Commission will interpret 

this phrase broadly to give full effect 

to the Rule.

Questions & Answers

Q: Our employees collect data on petroleum markets 

from public sources for internal forecasting and other 

reports. This information is valuable to our company, 

and we rely on it to make business decisions. Are we 

required to share this information with a counter-party in a 

bilateral negotiation if we believe it would change the 

counter-party’s business decisions?

A: No. Although such information may be material, the Rule does not require you to disclose

such information – even if another company values

that information or would have acted differently if

it had such information.

Q: Does the Rule prohibit misleading omissions that 

are made in the context of negotiating with a counterparty over the terms of a spot transaction for gasoline?

A: Probably not. Misleading statements made

during bilateral negotiations are unlikely to affect

the integrity of the market because they are typically not widely disseminated. However, under some

circumstances, such as in a thinly-traded market

where a trade takes place and is reported, the

reported market price more likely reflects that

trade, so that the misleading information affects

market prices. In such circumstances, making

intentionally misleading statements (by omitting a

material fact) violates section 317.3(b) of the Rule

because such statements may distort,or be likely to

distort, market conditions for a covered product.
Federal Trade Commission	 7

A Material Fact Significantly Alters the Total Mix of Information 

Available to Market Participants

A fact is “material” if a reasonable market participant would consider the fact 

important in making a decision to buy or sell a covered product. It is not enough 

simply to show that a particular statement is false or incomplete if the misrepresented 

fact is otherwise insignificant in purchase and sale decisions for covered products.

Generally, establishing that any 

particular person would have found 

omitted information interesting – or 

would have made a different choice 

if additional information had been 

known – will not be sufficient to 

prove a Rule violation. A Rule 

violation requires that a reasonable 

market participant would find the 

omitted information material and the omitted information is needed to make 

contemporaneous statements not misleading.

The Rule also does not entitle market participants to all information relating to a 

market transaction. A material omission is not misleading if a market participant could 

not reasonably expect to have the omitted information. For example, in bilateral 

negotiations, a reasonable market participant is not entitled to the market intelligence 

gathered by the other party in the negotiation.

Note on supply or inventory level information:

Market participants pay close attention to

changes in supply or inventory. False or misleading announcements about supply or inventory by

refiners are especially likely to affect transactions

for covered products and are likely to be material.
8	 Guide to Complying with Petroleum Market Manipulation Regulations

Intentional Omissions of Material Facts To Make Statements 

Misleading Must Distort or Be Likely to Distort Market Conditions 

for Covered Products (the “Market Impact” Requirement of Section 

317.3(b))

Section 317.3(b) of the Rule only prohibits 

intentional omissions of material fact from 

statements that distort or are likely to 

distort market conditions for covered 

products. Therefore, this section prohibits 

only those misleading omissions of material 

information that are likely to make market 

information less reliable. The Rule does not 

prohibit material omissions made during 

routine business activity unless the omission 

undermines the integrity of information 

disseminated into the broader marketplace 

for a covered product. Establishing a 

violation of section 317.3(b) does not 

require proof of a price or any other 

specific effect for any covered product.

Questions & Answers

Q: A refiner falsely announces that it is planning to 

shut down a refinery for maintenance to benefit from 

an increase in the near term futures contract price of 

gasoline. The refiner does not actually intend to take its 

refinery off-line for maintenance. Does such an action 

violate the Rule?

A: Yes. This action violates the Rule because the

refiner has lied about shutting down its refinery

for maintenance. Although the false announcement

may directly affect futures markets prices, the false

reporting would be considered“in connection with”

transactions for a covered product because higher

futures prices may induce firms to hold inventory

rather than selling it.

Q: Is there a safe harbor that exempts futures markets 

activity from the Rule?

A: No. The jurisdiction of the FTC and the

Commodity Futures Trading Commission (CFTC)

may be overlapping or complementary for persons

involved in the buying or selling of futures contracts

that affect wholesale purchases or sales of covered

products. When investigating fraudulent or deceptive conduct in petroleum futures markets,the FTC

will work cooperatively with the CFTC to avoid

duplicative or inconsistent enforcement.
Federal Trade Commission	 9

Examples

Scenario 1

XYZ Price Service collects information on refined products transactions and uses 

that information to calculate and publish a market price. Traders regularly use the 

published price as the basis for trades of refined products. XYZ procedures, which are 

well known throughout the industry, require traders not to report transactions below 

a specified volume – or to identify transactions below the specified volume – to limit 

the impact of small volume transactions on the reported price.

(a) ABC engages in a trade that falls below XYZ’s specified minimum 

volume. ABC reports the trade but inadvertently fails to identify it as 

below the specified minimum volume.

No violation.The Rule does not apply to inadvertent conduct or

mere mistakes.

(b) ABC intentionally reports the below-minimum trade and does not 

disclose that it is below the specified minimum volume in order to influence 

the reported price.

This intentional report, although literally accurate as to price, is misleading

because by submitting the report,ABC implied that the volume traded

met XYZ’s minimum reported trade.ABC’s actions violate section

317.3(b) of the Rule if (1) the omitted information is material; (2) the

omission was intended to make the report misleading; and (3) the

misleading omission distorted or is likely to distort market conditions for

a covered product.

Scenario 2

Refinery Co. anticipates a four-week turnaround for its refinery, and it makes spot 

purchases to build up its inventories in anticipation of the shutdown. Refinery Co. 

publicly announces that it anticipates an outage of four weeks, and that it will be able 

to continue to sell adequate supplies while performing the turnaround work. The 

turnaround lasts six weeks, and Refinery Co.’s output is reduced. Consequently, 

Refinery Co. needs to make additional market buys, which result in local price spikes.

If Refinery Co.’s announcement was based on a good faith estimate, the

announcement would not violate the Rule.There is no liability if the good

faith estimate later turns out to be incorrect.
10	 Guide to Complying with Petroleum Market Manipulation Regulations

What to do if you suspect Wholesale Petroleum Market Manipulation

Information about possible illegal activity helps law enforcement officials target 

would-be violators. If you have information regarding actions that may violate the 

Rule or Section 812 of EISA, send that information to mmr@ftc.gov. Please note 

that email is not secure, so if you have confidential information, do not send it by 

email; instead, please mark it “Confidential,” and send it by regular mail to:

	 Office of Policy and Coordination

	 Bureau of Competition

	 Federal Trade Commission

	 600 Pennsylvania Avenue, N.W., Room 383

	 Washington, DC 20580

Other agencies also have authority to prohibit price or market manipulation, including 

the Commodity Futures Trading Commission, the Federal Energy Regulatory 

Commission, and the Securities and Exchange Commission. You may wish to contact 

those agencies for further information about their market manipulation authority.

Joint Conduct by Competitors that Affects Market Prices for Covered 

Products May Violate the Antitrust Laws

The antitrust laws generally prohibit agreements among competitors that raise, lower, 

or stabilize prices or other competitive terms of trade. When buyers make choices 

about what products to buy, they should expect that the prices for those products have 

been determined freely on the basis of supply and demand, rather than by an illegal 

agreement among competitors. The antitrust laws prohibit collective conduct such as 

price fixing, bid rigging, and market division or customer allocation.

If you have information regarding anticompetitive joint conduct by competitors 

that affects market prices or other terms of trade, please contact the FTC at 

antitrust@ftc.gov. Please note that email is not secure, so if you have confidential 

information, do not send it by email; instead, please mark it “Confidential,” and 

send it by regular mail to the above address.
Federal Trade Commission	 11
12	 Guide to Complying with Petroleum Market Manipulation Regulations
Federal Trade Commission	 13

Energy Independence and Security Act of 2007 

TITLE VIII IMPROVED MANAGEMENT OF ENERGY POLICY

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Subtitle B – Prohibitions on Market Manipulation and False 

Information (42 U.S.C. 17301–17305)

Sec. 811. Prohibition on Market Manipulation.

It is unlawful for any person, directly or indirectly, to use or employ, in 

connection with the purchase or sale of crude oil gasoline or petroleum distillates 

at wholesale, any manipulative or deceptive device or contrivance, in contravention 

of such rules and regulations as the Federal Trade Commission may prescribe as 

necessary or appropriate in the public interest or for the protection of United States 

citizens.

Sec. 812. Prohibition on False Information.

It is unlawful for any person to report information related to the wholesale price 

of crude oil gasoline or petroleum distillates to a Federal department or agency if–

(1) the person knew, or reasonably should have known, the information to be 

false or misleading;

(2) the information was required by law to be reported; and

(3) the person intended the false or misleading data to affect data compiled by 

the department or agency for statistical or analytical purposes with respect to 

the market for crude oil, gasoline, or petroleum distillates.

Sec. 813. Enforcement by The Federal Trade Commission.

(a) Enforcement. – This subtitle shall be enforced by the Federal Trade 

Commission in the same manner, by the same means, and with the same 

jurisdiction as though all applicable terms of the Federal Trade Commission 

Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this 

subtitle.
14	 Guide to Complying with Petroleum Market Manipulation Regulations

(b) Violation Is Treated as Unfair or Deceptive Act or Practice. – The violation of 

any provision of this subtitle shall be treated as an unfair or deceptive act or 

practice proscribed under a rule issued under section 18(a)(1)(B) of the Federal 

Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

Sec. 814. Penalties.

(a) Civil Penalty. – In addition to any penalty applicable under the Federal Trade 

Commission Act (15 U.S.C. 41 et seq.), any supplier that violates section 811 

or 812 shall be punishable by a civil penalty of not more than $1,000,000.

(b) Method. – The penalties provided by subsection (a) shall be obtained in the 

same manner as civil penalties imposed under section 5 of the Federal Trade 

Commission Act (15 U.S.C. 45).

(c) Multiple Offenses; Mitigating Factors. – In assessing the penalty provided by 

subsection (a) –

(1) each day of a continuing violation shall be considered a separate violation; 

and

(2) the court shall take into consideration, among other factors – 

(A) the seriousness of the violation; and

(B) the efforts of the person committing the violation to remedy the harm 

caused by the violation in a timely manner.

Sec. 815. Effect on Other Laws.

(a) Other Authority of the Commission. – Nothing in this subtitle limits or affects 

the authority of the Federal Trade Commission to bring an enforcement action 

or take any other measure under the Federal Trade Commission Act (15 U.S.C. 

41 et seq.) or any other provision of law.

(b) Antitrust Law. – Nothing in this subtitle shall be construed to modify, impair, 

or supersede the operation of any of the antitrust laws. For purposes of 

this subsection, the term “antitrust laws’’ shall have the meaning given it in 

subsection (a) of the first section of the Clayton Act (15 U.S.C. 12), except that 

it includes section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to the 

extent that such section 5 applies to unfair methods of competition.

(c) State Law. – Nothing in this subtitle preempts any State law.
Federal Trade Commission	 15

16 CFR Part 317 – Prohibition of Energy Market Manipulation Rule

Sec.

317.1 Scope.

317.2 Definitions.

317.3 Prohibited practices.

317.4 Preemption.

317.5 Severability.

AUTHORITY: 42 U.S.C. 17301–17305; 15 U.S.C. 41–58.

§ 317.1 Scope.

This part implements Subtitle B of Title VIII of The Energy Independence and 

Security Act of 2007 (“EISA”), Pub. L. 110–140, 121 Stat. 1723 (December 19, 2007), 

codified at 42 U.S.C. 17301–17305. This rule applies to any person over which the 

Federal Trade Commission has jurisdiction under the Federal Trade Commission Act, 

15 U.S.C. 41 et seq. 

§ 317.2 Definitions.

The following definitions shall apply throughout this Rule:

(a) Crude oil means any mixture of hydrocarbons that exists: (1) in liquid phase 

in natural underground reservoirs and that remains liquid at atmospheric 

pressure after passing through separating facilities; or (2) as shale oil or tar 

sands requiring further processing for sale as a refinery feedstock.

(b) Gasoline means: (1) finished gasoline, including, but not limited to, 

conventional, reformulated, and oxygenated blends; and (2) conventional and 

reformulated gasoline blendstock for oxygenate blending.

(c) Knowingly means that the person knew or must have known that his or her 

conduct was fraudulent or deceptive.

(d)Person means any individual, group, unincorporated association, limited or 

general partnership, corporation, or other business entity.

(e) Petroleum distillates means: (1) jet fuels, including, but not limited to, all 

commercial and military specification jet fuels; and (2) diesel fuels and fuel oils, 

including, but not limited to, No. 1, No. 2, and No. 4 diesel fuel, and No. 1, No. 

2, and No. 4 fuel oil.
16	 Guide to Complying with Petroleum Market Manipulation Regulations

(f) Wholesale means: (1) all purchases or sales of crude oil or jet fuel; and (2) all 

purchases or sales of gasoline or petroleum distillates (other than jet fuel) at the 

terminal rack or upstream of the terminal rack level.

§ 317.3 Prohibited practices.

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.

§ 317.4 Preemption.

The Federal Trade Commission does not intend, through the promulgation of 

this Rule, to preempt the laws of any state or local government, except to the extent 

that any such law conflicts with this Rule. A law is not in conflict with this Rule if it 

affords equal or greater protection from the prohibited practices set forth in § 317.3.

§ 317.5 Severability.

The provisions of this Rule are separate and severable from one another. If any 

provision is stayed or determined to be invalid, it is the Commission’s intention that the 

remaining provisions shall continue in effect.

www.ftc.gov

November 2009