Consent decree
By Gareth HoyleLast updated How we research
A consent decree is a settlement entered as a court or agency order, which binds the company and carries penalties if it is broken.
A consent decree is a settlement between a regulator and a company that is entered as a binding order. At the FTC the usual form is an administrative consent order: the company signs a consent agreement "without admitting liability" and agrees to a final order, which generally becomes binding 60 days after it is served, according to the FTC's description of its enforcement authority.
What happens if a company breaks a consent order?
A company that violates a final FTC order is liable for a civil penalty for each violation, assessed by a federal district court and adjusted annually for inflation.
Why do consent orders matter to data buyers and sellers?
Consent orders matter because they can require deletion of data and of models trained on it. The FTC's 2021 Everalbum order required deletion of models and algorithms built from users' photos and videos, and its 2023 Rite Aid order required deletion of algorithms developed from facial images and a direction to third parties to delete them.
Ask a buyer whether it is under any order that limits how it collects or uses data, and make sure your license states what happens if a regulator orders deletion. See algorithmic disgorgement.