What Are the Grounds for a Cease and Desist?

If someone is doing something to you or your business that is unlawful or harmful, you may have wondered, “What are the grounds for a cease and desist?”

Many people have heard of cease and desist letters, and most people know that a cease and desist letter written on attorney letterhead on their behalf is often all that is needed to stop the unwanted behavior. After all, nobody wants to get sued or end up in legal trouble.

What many people aren’t sure about is when they are within their right to send a cease and desist letter to the other party. Many people also don’t realize that there is a difference between a cease and desist letter and a cease and desist order. We will go over these topics and much more. Let’s start with the basics.

What is a Cease and Desist Letter?

A cease and desist letter is a formal notice, but it doesn’t have any legal effect on its own other than documenting that you have notified the other party of the issue and the possible legal consequences they may face if they don’t stop performing the unauthorized or illegal activity. This formal notice demands that the other party stop engaging (or sometimes, in cases of contract law, start engaging) in a particular activity.

You may consider sending a cease and desist letter on your own, and that would be within your right. Essentially, anyone can send a cease and desist letter to someone they feel is in some way harming them, their property, their rights, their business, or something of that nature. Typically, the letter will be viewed more seriously if it’s drafted by an attorney.

A cease and desist letter is not the same thing as a cease and desist order.

What is a Cease and Desist Order?

A cease and desist order, on the other hand, is legally enforceable. These orders are issued by a court or a government agency and require the recipient to immediately change (begin or stop) specific actions until a hearing can take place or the order becomes final.

For example, a judge may issue a cease and desist order to a developer requiring them to immediately stop construction on a project until a property dispute is resolved. If the developer continues to work on the project after receiving the order, they could face fines, damages, or even jail time.

What Government Agencies Can Issue a Cease and Desist Order?

Besides a court of law, many government agencies can also issue legally binding cease and desist orders. Agencies may issue cease and desist orders on a variety of violations provided they fall under the agency’s jurisdiction.

Understanding Cease and Desist Orders - LloydWinter Law For example, government agencies that issue cease and desist orders include but are not limited to:

Federal Trade Commission (FTC)
United States International Trade Commission (USITC)
Office of the Comptroller of the Currency (OCC)
Securities and Exchange Commission (SEC)
Federal Deposit Insurance Corporation (FDIC)

Can You Ignore a Cease and Desist?

You can ignore a cease and desist letter if you choose, but you cannot ignore a cease and desist order. Keep in mind though, if you ignore a cease and desist letter from an individual or their attorney, you should expect that the sender will follow up on their legal threat. If someone went to the trouble to consult with an attorney and pay the attorney’s fee for a cease and desist letter, they are likely highly invested in their demand.

If you receive a cease and desist letter or order from a court or government agency that you feel is unjustified, you should consult with an attorney. If you receive a cease and desist order, you must immediately comply with the order or face serious penalties.