---
kind: "section"
citation: "7 U.S.C. § 25"
title: "7"
title_heading: "Agriculture"
number: "25"
heading: "Private rights of action"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/25"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §25. Private rights of action

- (a) **Actual damages; actionable transactions; exclusive remedy—**
  - (1) Any [person](/usc/7/1a.md?p=38) (other than a [registered entity](/usc/7/1a.md?p=40) or registered futures association) who violates this chapter or who willfully aids, abets, counsels, induces, or procures the [commission](/usc/7/1a.md?p=8) of a violation of this chapter shall be liable for actual damages resulting from one or more of the transactions referred to in subparagraphs (A) through (D) of this paragraph and caused by such violation to any other [person](/usc/7/1a.md?p=38)—
    - (A) who received trading advice from such [person](/usc/7/1a.md?p=38) for a fee;
    - (B) who made through such [person](/usc/7/1a.md?p=38) any [contract of sale](/usc/7/1a.md?p=13) of any [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27) (or [option](/usc/7/1a.md?p=36) on such contract or any [commodity](/usc/7/1a.md?p=9)) or any [swap](/usc/7/1a.md?p=47-A); or who deposited with or paid to such [person](/usc/7/1a.md?p=38) money, [securities](/usc/7/1a.md?p=41), or property (or incurred debt in lieu thereof) in connection with any order to make such contract or any [swap](/usc/7/1a.md?p=47-A);
    - (C) who purchased from or sold to such [person](/usc/7/1a.md?p=38) or placed through such [person](/usc/7/1a.md?p=38) an order for the purchase or sale of—
      - (i) an [option](/usc/7/1a.md?p=36) subject to [section 6c of this title](/usc/7/6c.md) (other than an [option](/usc/7/1a.md?p=36) purchased or sold on a [registered entity](/usc/7/1a.md?p=40) or other [board of trade](/usc/7/1a.md?p=6));
      - (ii) a contract subject to [section 23 of this title](/usc/7/23.md); or[^1]
      - (iii) an interest or participation in a [commodity pool](/usc/7/1a.md?p=10-A); or
      - (iv) a [swap](/usc/7/1a.md?p=47-A); or
    - (D) who purchased or sold a contract referred to in [subparagraph (B)](#a-1-B) hereof or [swap](/usc/7/1a.md?p=47-A) if the violation constitutes—
      - (i) the use or [employment](/usc/7/499a.md?p=b-10) of, or an attempt to use or [employ](/usc/7/499a.md?p=b-10), in connection with a [swap](/usc/7/1a.md?p=47-A), or a [contract of sale](/usc/7/1a.md?p=13) of a [commodity](/usc/7/1a.md?p=9), in [interstate commerce](/usc/7/1a.md?p=30), or for [future delivery](/usc/7/1a.md?p=27) on or subject to the rules of any [registered entity](/usc/7/1a.md?p=40), any manipulative device or contrivance in contravention of such rules and regulations as the [Commission](/usc/7/1a.md?p=8) shall promulgate by not later than 1 year after July 21, 2010; or
      - (ii) a manipulation of the price of any such contract or [swap](/usc/7/1a.md?p=47-A) or the price of the [commodity](/usc/7/1a.md?p=9) underlying such contract or [swap](/usc/7/1a.md?p=47-A).
  - (2) Except as provided in [subsection (b)](#b), the rights of action authorized by this subsection and by sections [7(d)(13)](/usc/7/7.md?p=d-13), [7a–1(c)(2)(H)](/usc/7/7a–1.md?p=c-2-H), and [21(b)(10)](/usc/7/21.md?p=b-10) of this title shall be the exclusive remedies under this chapter available to any [person](/usc/7/1a.md?p=38) who sustains loss as a result of any alleged violation of this chapter. Nothing in this subsection shall limit or abridge the rights of the parties to agree in advance of a dispute upon any forum for resolving claims under this section, including arbitration.
  - (3) In any action arising from a violation in the execution of an order on the floor of a [registered entity](/usc/7/1a.md?p=40), the [person](/usc/7/1a.md?p=38) referred to in [paragraph (1)](#a-1) shall be liable for—
    - (A) actual damages proximately caused by such violation. If an award of actual damages is made against a [floor broker](/usc/7/1a.md?p=22-A) in connection with the execution of a [customer](/usc/7/24.md?p=b) order, and the [futures commission merchant](/usc/7/1a.md?p=28-A) which selected the [floor broker](/usc/7/1a.md?p=22-A) for the execution of the [customer](/usc/7/24.md?p=b) order is held to be responsible under [section 2(a)(1) of this title](/usc/7/2.md?p=a-1) for the [floor broker](/usc/7/1a.md?p=22-A)’s violation, such [futures commission merchant](/usc/7/1a.md?p=28-A) may be required to satisfy such award; and
    - (B) where the violation is willful and intentional, punitive or exemplary damages equal to no more than two times the amount of such actual damages. If an award of punitive or exemplary damages is made against a [floor broker](/usc/7/1a.md?p=22-A) in connection with the execution of a [customer](/usc/7/24.md?p=b) order, and the [futures commission merchant](/usc/7/1a.md?p=28-A) which selected the [floor broker](/usc/7/1a.md?p=22-A) for the execution of the [customer](/usc/7/24.md?p=b) order is held to be responsible under [section 2(a)(1) of this title](/usc/7/2.md?p=a-1) for the [floor broker](/usc/7/1a.md?p=22-A)’s violation, such [futures commission merchant](/usc/7/1a.md?p=28-A) may be required to satisfy such award if the [floor broker](/usc/7/1a.md?p=22-A) fails to do so, except that such requirement shall apply to the [futures commission merchant](/usc/7/1a.md?p=28-A) only if it willfully and intentionally selected the [floor broker](/usc/7/1a.md?p=22-A) with the intent to assist or facilitate the [floor broker](/usc/7/1a.md?p=22-A)’s violation.
  - (4) **Contract enforcement between eligible counterparties.—**
    - (A) **In general.—** No [hybrid instrument](/usc/7/1a.md?p=29) sold to any investor shall be void, voidable, or unenforceable, and no party to a [hybrid instrument](/usc/7/1a.md?p=29) shall be entitled to rescind, or recover any payment made with respect to, the [hybrid instrument](/usc/7/1a.md?p=29) under this section or any other provision of Federal or [State](/usc/7/198.md?p=5) law, based solely on the failure of the [hybrid instrument](/usc/7/1a.md?p=29) to comply with the terms or conditions of [section 2(f) of this title](/usc/7/2.md?p=f) or regulations of the [Commission](/usc/7/1a.md?p=8).
    - (B) **Swaps.—** No agreement, contract, or transaction between [eligible contract participants](/usc/7/1a.md?p=18) or [persons](/usc/7/1a.md?p=38) reasonably believed to be [eligible contract participants](/usc/7/1a.md?p=18) shall be void, voidable, or unenforceable, and no party to such agreement, contract, or transaction shall be entitled to rescind, or recover any payment made with respect to, the agreement, contract, or transaction under this section or any other provision of Federal or [State](/usc/7/198.md?p=5) law, based solely on the failure of the agreement, contract, or transaction—
      - (i) to meet the definition of a [swap](/usc/7/1a.md?p=47-A) under [section 1a of this title](/usc/7/1a.md); or
      - (ii) to be cleared in accordance with [section 2(h)(1) of this title](/usc/7/2.md?p=h-1).
  - (5) **Legal certainty for long-term swaps entered into before July 21, 2010.—**
    - (A) **Effect on swaps.—** Unless specifically reserved in the applicable [swap](/usc/7/1a.md?p=47-A), neither the enactment of the Wall Street Transparency and Accountability Act of 2010, nor any requirement under that Act or an amendment made by that Act, shall constitute a termination event, force majeure, illegality, increased costs, regulatory change, or similar event under a [swap](/usc/7/1a.md?p=47-A) (including any related credit support arrangement) that would permit a party to terminate, renegotiate, modify, amend, or supplement 1 or more transactions under the [swap](/usc/7/1a.md?p=47-A).
    - (B) **Position limits.—** Any position limit established under the Wall Street Transparency and Accountability Act of 2010 shall not apply to a position acquired in good faith prior to the effective date of any rule, regulation, or order under the Act that establishes the position limit; provided, however, that such positions shall be attributed to the trader if the trader’s position is increased after the effective date of such position limit rule, regulation, or order.
  - (6) **Contract enforcement for foreign futures contracts.—** A [contract of sale](/usc/7/1a.md?p=13) of a [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27) traded or executed on or through the facilities of a [board of trade](/usc/7/1a.md?p=6), [exchange](/usc/7/1a.md?p=1-D), or [market](/usc/7/198.md?p=1) located outside the United States for purposes of [section 6(a) of this title](/usc/7/6.md?p=a) shall not be void, voidable, or unenforceable, and a party to such a contract shall not be entitled to rescind or recover any payment made with respect to the contract, based on the failure of the foreign [board of trade](/usc/7/1a.md?p=6) to comply with any provision of this chapter.
- (b) **Liabilities of organizations and individuals; bad faith requirement; exclusive remedy—**
  - (1)
    - (A) A [registered entity](/usc/7/1a.md?p=40) that fails to enforce any bylaw, rule, regulation, or resolution that it is required to enforce by section [7](/usc/7/7.md), [7a–1](/usc/7/7a–1.md), [7a–2](/usc/7/7a–2.md), [7b–3](/usc/7/7b–3.md), or [24a](/usc/7/24a.md) of this title, (B) a licensed [board of trade](/usc/7/1a.md?p=6) that fails to enforce any bylaw, rule, regulation, or resolution that it is required to enforce by the [Commission](/usc/7/1a.md?p=8), or (C) any [registered entity](/usc/7/1a.md?p=40) that in enforcing any such bylaw, rule, regulation, or resolution violates this chapter or any [Commission](/usc/7/1a.md?p=8) rule, regulation, or order, shall be liable for actual damages sustained by a [person](/usc/7/1a.md?p=38) who engaged in any transaction on or subject to the rules of such [registered entity](/usc/7/1a.md?p=40) to the extent of such [person](/usc/7/1a.md?p=38)’s actual losses that resulted from such transaction and were caused by such failure to enforce or enforcement of such bylaws, rules, regulations, or resolutions.
  - (2) A registered futures association that fails to enforce any bylaw or rule that is required under [section 21 of this title](/usc/7/21.md) or in enforcing any such bylaw or rule violates this chapter or any [Commission](/usc/7/1a.md?p=8) rule, regulation, or order shall be liable for actual damages sustained by a [person](/usc/7/1a.md?p=38) that engaged in any transaction specified in [subsection (a)](#a) of this section to the extent of such [person](/usc/7/1a.md?p=38)’s actual losses that resulted from such transaction and were caused by such failure to enforce or enforcement of such bylaw or rule.
  - (3) Any individual who, in the capacity as an officer, director, governor, committee [member](/usc/7/1a.md?p=34), or employee of registered[^2] entity or a registered futures association willfully aids, abets, counsels, induces, or procures any failure by any such entity to enforce (or any violation of the chapter in enforcing) any bylaw, rule, regulation, or resolution referred to in paragraph (1) or (2) of this subsection, shall be liable for actual damages sustained by a [person](/usc/7/1a.md?p=38) who engaged in any transaction specified in [subsection (a)](#a) of this section on, or subject to the rules of, such [registered entity](/usc/7/1a.md?p=40) or, in the case of an officer, director, governor, committee [member](/usc/7/1a.md?p=34), or employee of a registered futures association, any transaction specified in [subsection (a)](#a) of this section, in either case to the extent of such [person](/usc/7/1a.md?p=38)’s actual losses that resulted from such transaction and were caused by such failure or violation.
  - (4) A [person](/usc/7/1a.md?p=38) seeking to enforce liability under this section must establish that the [registered entity](/usc/7/1a.md?p=40)[^3] registered futures association, officer, director, governor, committee [member](/usc/7/1a.md?p=34), or employee acted in bad faith in failing to take action or in taking such action as was taken, and that such failure or action caused the loss.
  - (5) The rights of action authorized by this subsection shall be the exclusive remedy under this chapter available to any [person](/usc/7/1a.md?p=38) who sustains a loss as a result of (A) the alleged failure by a [registered entity](/usc/7/1a.md?p=40) or registered futures association or by any officer, director, governor, committee [member](/usc/7/1a.md?p=34), or employee to enforce any bylaw, rule, regulation, or resolution referred to in paragraph (1) or (2) of this subsection, or (B) the taking of action in enforcing any bylaw, rule, regulation, or resolution referred to in this subsection that is alleged to have violated this chapter, or any [Commission](/usc/7/1a.md?p=8) rule, regulation, or order.
- (c) **Jurisdiction; statute of limitations; venue; process—** The United States district courts shall have exclusive jurisdiction of actions brought under this section. Any such action shall be brought not later than two years after the date the cause of action arises. Any action brought under [subsection (a)](#a) of this section may be brought in any judicial district wherein the defendant is found, resides, or transacts business, or in the judicial district wherein any act or transaction constituting the violation occurs. Process in such action may be served in any judicial district of which the defendant is an inhabitant or wherever the defendant may be found.
- (d) **Dates of application to actions—** The provisions of this section shall become effective with respect to causes of action accruing on or after the date of enactment of the Futures Trading Act of 1982 [January 11, 1983]: Provided, That the enactment of the Futures Trading Act of 1982 shall not affect any right of any parties which may exist with respect to causes of action accruing prior to such date.

## Footnotes

[^1]: So in original. The word “or” probably should not appear.
[^2]: So in original. Probably should be preceded by “a”.
[^3]: So in original. Probably should be followed by a comma.

## Source credit

(Sept. 21, 1922, ch. 369, § 22, as added Pub. L. 97–444, title II, § 235, Jan. 11, 1983, 96 Stat. 2322; amended Pub. L. 102–546, title II, §§ 211, 222(d), title IV, § 402(14), Oct. 28, 1992, 106 Stat. 3607, 3616, 3625; Pub. L. 106–554, § 1(a)(5) [title I, §§ 120, 123(a)(25)], Dec. 21, 2000, 114 Stat. 2763, 2763A–404, 2763A–410; Pub. L. 110–234, title XIII, §§ 13105(i), 13203(n), May 22, 2008, 122 Stat. 1435, 1441; Pub. L. 110–246, § 4(a), title XIII, §§ 13105(i), 13203(n), June 18, 2008, 122 Stat. 1664, 2197, 2203; Pub. L. 111–203, title VII, §§ 738(c), 739, 749(h), 753(c), July 21, 2010, 124 Stat. 1728, 1729, 1748, 1754.)

## Notes

### Editorial Notes

### References in Text

The Wall Street Transparency and Accountability Act of 2010, referred to in subsec. (a)(5), is title VII of Pub. L. 111–203, July 21, 2010, 124 Stat. 1641, which enacted chapter 109 (§ 8301 et seq.) of Title 15, Commerce and Trade, and enacted and amended numerous other sections and notes in the Code. For complete classification of this Act to the Code, see Short Title note set out under section 8301 of Title 15 and Tables.

The Futures Trading Act of 1982, referred to in subsec. (d), is Pub. L. 97–444, Jan. 11, 1983, 96 Stat. 2294, which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title of 1983 Amendment note set out under section 1 of this title and Tables.

### Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

### Amendments

2010—Subsec. (a)(1)(B). Pub. L. 111–203, § 749(h)(1)(B), which directed insertion of “or any swap” after “such contract”, was executed by making the insertion after “such contract” the second time appearing, to reflect the probable intent of Congress.

Pub. L. 111–203, § 749(h)(1)(A), inserted “or any swap” after “commodity)”.

Subsec. (a)(1)(C)(iv). Pub. L. 111–203, § 749(h)(2), added cl. (iv).

Subsec. (a)(1)(D). Pub. L. 111–203, § 753(c), added subpar. (D) and struck out former subpar. (D) which read as follows: “who purchased or sold a contract referred to in subparagraph (B) hereof if the violation constitutes a manipulation of the price of any such contract or the price of the commodity underlying such contract.”

Subsec. (a)(4), (5). Pub. L. 111–203, § 739, added pars. (4) and (5) and struck out former par. (4). Prior to amendment, text of par. (4) read as follows: “No agreement, contract, or transaction between eligible contract participants or persons reasonably believed to be eligible contract participants, and no hybrid instrument sold to any investor, shall be void, voidable, or unenforceable, and no such party shall be entitled to rescind, or recover any payment made with respect to, such an agreement, contract, transaction, or instrument under this section or any other provision of Federal or State law, based solely on the failure of the agreement, contract, transaction, or instrument to comply with the terms or conditions of an exemption or exclusion from any provision of this chapter or regulations of the Commission.”

Subsec. (a)(6). Pub. L. 111–203, § 738(c), added par. (6).

Subsec. (b)(1)(A). Pub. L. 111–203, § 749(h)(3), substituted “section 7, 7a–1, 7a–2, 7b–3, or 24a of this title” for “section 2(h)(7) of this title or sections 7 through 7a–2 of this title”.

2008—Subsec. (a)(2). Pub. L. 110–246, § 13105(i), substituted “7a–1(c)(2)(H)” for “7a–1(b)(1)(E)”.

Subsec. (b)(1)(A). Pub. L. 110–246, § 13203(n), inserted “section 2(h)(7) of this title or” before “sections 7 through 7a–2”.

2000—Subsec. (a)(1). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(A)(i)(I)], substituted “registered entity” for “contract market, clearing organization of a contract market, licensed board of trade,” in introductory provisions.

Subsec. (a)(1)(C)(i). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(A)(i)(II)], substituted “registered entity” for “contract market”.

Subsec. (a)(2). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(A)(ii)], substituted “sections 7(d)(13), 7a–1(b)(1)(E),” for “sections 7a(11),”.

Subsec. (a)(3). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(A)(iii)], substituted “registered entity” for “contract market” in introductory provisions.

Subsec. (a)(4). Pub. L. 106–554, § 1(a)(5) [title I, § 120], added par. (4).

Subsec. (b)(1). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(B)(i)], substituted “registered entity that fails” for “contract market or clearing organization of a contract market that fails”, “sections 7 through 7a–2 of this title” for “section 7a(8) and section 7a(9) of this title”, “registered entity that in” for “contract market, clearing organization of a contract market, or licensed board of trade that in”, and “registered entity to the” for “contract market or licensed board of trade to the”.

Subsec. (b)(3). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(B)(ii)], substituted “employee of registered entity” for “employee of a contract market, clearing organization, licensed board of trade,” and “such registered entity” for “such contract market, licensed board of trade”.

Subsec. (b)(4). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(B)(iii)], substituted “registered entity” for “contract market, licensed board of trade, clearing organization,”.

Subsec. (b)(5). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(B)(iv)], substituted “registered entity” for “contract market, licensed board of trade, clearing organization,”.

1992—Subsec. (a)(1). Pub. L. 102–546, § 402(14)(A), substituted “subparagraphs” for “clauses” in introductory provisions and “subparagraph” for “clause” in subpar. (D).

Subsec. (a)(2). Pub. L. 102–546, § 402(14)(B), made technical amendment to reference to section 21(b)(10) of this title to correct reference to corresponding section of original act.

Subsec. (a)(3). Pub. L. 102–546, § 222(d), added par. (3).

Subsec. (c). Pub. L. 102–546, § 211, amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The United States district courts shall have exclusive jurisdiction of actions brought under this section. Any such action must be brought within two years after the date the cause of action accrued.”

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by sections 738(c), 739, and 749(h) of Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

Amendment by section 753(c) of Pub. L. 111–203 effective on the date on which the final rule promulgated by the Commodity Futures Trading Commission pursuant to Pub. L. 111–203 takes effect [see 76 F.R. 41398, effective Aug. 15, 2011], see section 753(d) of Pub. L. 111–203, set out as a note under section 9 of this title.

### Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Amendment by section 13203(n) of Pub. L. 110–246 effective June 18, 2008, see section 13204(a) of Pub. L. 110–246, set out as a note under section 2 of this title.

### Effective Date

Section effective Jan. 11, 1983, see section 239 of Pub. L. 97–444, set out as an Effective Date of 1983 Amendment note under section 2 of this title.