---
kind: "section"
citation: "15 U.S.C. § 77xxx"
title: "15"
title_heading: "Commerce and Trade"
number: "77xxx"
heading: "Unlawful representations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/77xxx"
units:
  - "Chapter 2A — Securities and Trust Indentures"
  - "Subchapter III — Trust Indentures"
---

# §77xxx. Unlawful representations


It shall be unlawful for any [person](/usc/15/77b.md?p=a-2) in offering, selling or issuing any [security](/usc/15/77b.md?p=a-1) to represent or imply in any manner whatsoever that any action or failure to act by the [Commission](/usc/15/77ccc.md?p=15) in the [administration](/usc/15/636e.md?p=1) of this subchapter means that the [Commission](/usc/15/77ccc.md?p=15) has in any way passed upon the merits of, or given approval to, any trustee, [indenture](/usc/15/77ccc.md?p=7) or [security](/usc/15/77b.md?p=a-1), or any transaction or transactions therein, or that any such action or failure to act with regard to any statement or report filed with or examined by the [Commission](/usc/15/77ccc.md?p=15) pursuant to this subchapter or any rule, regulation, or order thereunder, has the effect of a finding by the [Commission](/usc/15/77ccc.md?p=15) that such statement or report is true and accurate on its face or that it is not false or misleading.


## Source credit

(May 27, 1933, ch. 38, title III, § 324, as added Aug. 3, 1939, ch. 411, 53 Stat. 1176; amended Aug. 10, 1954, ch. 667, title III, § 305, 68 Stat. 688.)

## Notes

### Editorial Notes

### Amendments

1954—Act Aug. 10, 1954, substituted “offering, selling, or issuing” for “issuing or selling”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1954 Amendment

Amendment by act Aug. 10, 1954, effective 60 days after Aug. 10, 1954, see note under section 77b of this title.

### Executive Documents

### Transfer of Functions

For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.