The FTC’s Strong Hand In Cyber-Privacy Cases

Most FTC enforcement actions are resolved through settlement and the entry of a consent order following a negotiation. In most consumer protection cases, if there is no consent order the FTC lacks authority to fine a company, but it does have authority to fine a company for violating a consent order. In August of last year, the maximum civil penalty for violating such orders more than doubled to to $40,000 “per violation,” and consent orders often last as long as 20 years. Thus, as explained in this article by Neda Shakoori and Christine Peek in Today’s General Counsel: “entry of a consent order or stipulated judgment does not end the FTC’s enforcement proceedings. Rather, it begins a new phase.”