Compliance Rule 2-29 addresses the content of promotional material and other communications Members have with the public. It covers a wide range of communications including, but not limited to, sales or educational literature, print and electronic advertising, phone solicitations, sales scripts and material used on the Internet. The rule requires, among other things, that

1. statements made in promotional material be factually true;

2. statements concerning the possibility of profit are balanced by equally prominent statements of the risk of loss;

3. hypothetical results are not presented for any trading program for which the Member has at least three months of actual trading results;

4. statements regarding actual past trading profits mention that past results are not necessarily indicative of future results; and

5. statements of opinion are identified as such.

The rule prohibits the use of any promotional material that

1. is likely to deceive or mislead the reader;

2. uses or is part of a high-pressure sales approach;

3. omits any fact that might make the material misleading or deceptive; or

4. states that futures trading is appropriate to everyone.

In an effort to help our Members understand their regulatory obligations regarding promotional material, NFA offers a Promotional Material Review service at no cost to our Members and a booklet titled "A Guide to NFA Compliance Rule 2-29: Communications with the Public and Promotional Material." Members can also contact our Advertising Regulatory Team at art@nfa.futures.org.