---
kind: "section"
citation: "13 C.F.R. § 142.6"
title: "13"
number: "142.6"
heading: "What does the phrase “know or have reason to know” mean?"
url: "https://uscodex.org/cfr/13/142.6"
---

# §142.6. What does the phrase “know or have reason to know” mean?


A person knows or has reason to know (that a claim or statement is false) if the person:

- (a) Has actual knowledge that the claim or statement is false, fictitious, or fraudulent; or
- (b) Acts in deliberate ignorance of the truth or falsity of the claim or statement; or
- (c) **Acts in reckless disregard of the truth or falsity of the claim or statement.**

## Notes

### Authority

Authority: 15 U.S.C. 634(b); 31 U.S.C. 3803(g)(2).

### Source

Source: 61 FR 2691, Jan. 29, 1996, unless otherwise noted.