CIPP-US Question #113: Real Exam Question with Answer & Explanation

The correct answer is D. It spares the expense of going to trial.. A consent decree is a settlement agreement between the FTC and a company that has engaged in unfair or deceptive privacy practices. A consent decree typically requires the company to stop the unlawful conduct, implement remedial measures, pay a civil penalty, and submit to ongoin

Question

The FTC often negotiates consent decrees with companies found to be in violation of privacy principles. How does this benefit both parties involved?

Options

AIt standardizes the amount of fines.
BIt simplifies the audit requirements.
CIt avoids potentially harmful publicity.
DIt spares the expense of going to trial.

Explanation

A consent decree is a settlement agreement between the FTC and a company that has engaged in unfair or deceptive privacy practices. A consent decree typically requires the company to stop the unlawful conduct, implement remedial measures, pay a civil penalty, and submit to ongoing monitoring and reporting. A consent decree benefits both parties involved because it spares the expense of going to trial, which can be costly, time-consuming, and uncertain. A consent decree also allows the parties to negotiate the terms of the settlement, rather than having a court impose a judgment. A consent decree does not admit liability or wrongdoing by the company, but it has the force of law and can be enforced by the FTC or the courts if the company violates its terms.

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