State AG Jargon Unpacked: Assurance of Discontinuance/Assurance of Voluntary Compliance (AOD)

AODs are state-specific legal tools under consumer protection laws. They're like a settlement where a company commits to certain monetary and business changes post-investigation.

In some states, AODs are akin to contractual agreements, while in others, like California and Texas, they resemble consent judgments, with violations potentially leading to court contempt proceedings.

Penalties for AOD violations aren't always defined and they're typically not considered admissions of guilt. When penalties are prescribed, they're usually less severe than for consent decree violations.

In real-world scenarios, if a company is suspected of violating an AOD, State AGs leverage this to pressure the company into compliance, often leading to more stringent settlement terms.

To make things even wonkier, some State AGs will enter into AODs as part of multistate settlements even when their state statutes do not provide for AODs; and some State AGs will ask to enter into an AOD even with a multistate settlement is in the form of a consent judgment.  Happy to explain these dynamics that implicate state sovereignty in a conversation.

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