COMMENTS SUMMARY

NCLA urged the Commission not to adopt its proposed “Duty of Candor” rule, which, as written, raised significant constitutional concerns while failing to provide a legitimate reason to implement the rule in the first place.

Specifically, the proposed rule would have imposed a broad “duty of candor” on “all entities communicating with the Commission or other specified organizations related to a matter subject to the jurisdiction of the Commission.” The communicating entity—broadly defined to include all types of organizations and individuals—would have had to “submit accurate and factual information and not submit false or misleading information or omit material information.” Further, an entity would only have been free from the risk of penalties for ostensibly violating the rule if the Commission determines that the entity “has exercised due diligence to prevent such occurrences.”