What does a cease and desist order typically prohibit?

A cease and desist order specifically prohibits a certain practice or activity that is identified in the order. These orders are often issued by regulatory authorities when an individual or entity is found to be engaging in unlawful or harmful activities that need to be halted immediately. The purpose of the order is to prevent ongoing or future violations of regulations or laws without necessarily affecting all aspects of the person's or business’s operations.

This targeted approach helps ensure compliance with legal standards without imposing overly broad restrictions that could disrupt legitimate business functions that do not pose a risk. For example, if a company is found to be misleading clients about the benefits of an insurance policy, the cease and desist order might specifically require them to stop that misleading practice rather than shutting down all their operations entirely.