Release: 4724- 02
For Release: November 13, 2002
CFTC ISSUES CONSUMER ADVISORY WARNING THE PUBLIC ABOUT COMMODITY SCAMS ARISING OUT OF THE POSSIBILITY OF CONFLICT WITH IRAQ
WASHINGTON, D.C. – In the midst of the current international discussion about Iraq, the U.S. Commodity Futures Trading Commission (CFTC) has issued a Consumer Advisory warning the public to be wary of companies promising profits from heating oil and other commodity futures and options trading based on the possible effect of war with Iraq on the prices of these commodities. Such sales pitches are false. In reality, the prices of commodity futures and options contracts already take into account all known or predictable market conditions, such as changes in demand for a commodity or known shortages of a commodity or problems in production or delivery of that commodity due to major events in the world.
The CFTC issued this Advisory after receiving several reports of companies attempting to take advantage of the extensive media coverage of the Iraq situation. Consumers are advised to watch for the warning signs listed below, and to take precautions before placing their funds with any company that offers leveraged or financed commodity transactions:
Avoid any Company that Predicts or Guarantees Large Profits Because of Well-Known Current Events, Published Reports or Predictable, Seasonal Changes in Demand
To see a copy of the Consumer Advisory, go to the following Internet web address: http://www.cftc.gov/. Note to editors: The CFTC has also published six other Consumer Alerts, which can be found at http://www.cftc.gov/cftc/cftccustomer.htm - advisory.
Chief, CFTC Office of Cooperative Enforcement
CFTC Division of Enforcement
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