Consent Decree

A consent decree is a formal agreement, approved by a court, between a regulatory agency (such as the SEC, FTC, or DOJ) and a defendant company or individual that resolves enforcement actions without a full trial. The respondent typically neither admits nor denies the allegations but agrees to specific remedial actions, such as paying fines, implementing compliance improvements, or ceasing certain practices. Consent decrees are binding and enforceable by the court — violating their terms can result in contempt charges and additional penalties. They are commonly used in securities enforcement, antitrust cases, and environmental regulation because they provide faster resolution, reduce litigation costs, and achieve regulatory objectives without the uncertainty of trial. Critics argue the "neither admit nor deny" provision lacks accountability.