# Consent decree

URL: https://sellmydatatoai.net/glossary/consent-decree

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](https://www.ftc.gov/about-ftc/mission/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](https://www.ftc.gov/news-events/news/press-releases/2021/05/ftc-finalizes-settlement-photo-app-developer-related-misuse-facial-recognition-technology) required deletion of models and algorithms built from users' photos and videos, and its [2023 Rite Aid order](https://www.ftc.gov/news-events/news/press-releases/2023/12/rite-aid-banned-using-ai-facial-recognition-after-ftc-says-retailer-deployed-technology-without) 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](https://sellmydatatoai.net/glossary/algorithmic-disgorgement).