APR Quality Assurance & Compliance 3 — Questions and Answers
Question 1: Which regulatory body primarily governs disclosure requirements for publicly traded companies' PR communications in the United States?
- FTC
- FCC
- SEC (Correct answer)
- CFPB
Correct answer: SEC
The Securities and Exchange Commission (SEC) regulates material disclosures from publicly traded companies, directly affecting their PR communications.
Question 2: A PR firm is hired by a foreign government to promote its policies in the U.S. Which law requires registration of this activity?
- Federal Communications Act
- Foreign Agents Registration Act (FARA) (Correct answer)
- Lobbying Disclosure Act
- Freedom of Information Act
Correct answer: Foreign Agents Registration Act (FARA)
FARA requires anyone acting as an agent of a foreign principal for political activities in the U.S. to register with the Department of Justice.
Question 3: In quality assurance, a 'post-mortem' analysis is conducted to:
- Evaluate campaign performance after it concludes (Correct answer)
- Assess stakeholder sentiment during a crisis
- Monitor real-time media coverage
- Benchmark against competitor campaigns
Correct answer: Evaluate campaign performance after it concludes
A post-mortem analysis reviews what worked and what didn't after a campaign ends to improve future quality.
Question 4: The FTC's endorsement guidelines require that sponsored social media content must:
- Only be posted during business hours
- Clearly disclose the material connection between the brand and endorser (Correct answer)
- Be pre-approved by the platform
- Include a disclaimer only if payment exceeds $500
Correct answer: Clearly disclose the material connection between the brand and endorser
FTC guidelines mandate clear and conspicuous disclosure of any material connection (payment, free products, etc.) in sponsored content.
Question 5: Which approach BEST supports ongoing quality assurance in a PR department?
- Conducting a single annual audit
- Implementing continuous monitoring and periodic process reviews (Correct answer)
- Relying on client feedback as the sole quality measure
- Using only quantitative metrics like impressions
Correct answer: Implementing continuous monitoring and periodic process reviews
Ongoing QA requires continuous monitoring combined with periodic structured reviews to catch issues early and drive improvement.
Question 6: When a PR professional shares confidential client information with a competitor, this violates which PRSA ethical principle?
- Loyalty (Correct answer)
- Honesty
- Expertise
- Independence
Correct answer: Loyalty
Loyalty requires protecting the client's confidential information and acting in their best interest.
Question 7: In a crisis compliance scenario, 'safe harbor' statements in PR communications typically protect organizations from liability related to:
- Product defects
- Forward-looking statements that may not materialize (Correct answer)
- Employee misconduct disclosures
- Environmental impact reports
Correct answer: Forward-looking statements that may not materialize
Safe harbor provisions protect companies from securities litigation when forward-looking statements don't come to fruition, provided proper disclosures are made.
APR Quality Assurance & Compliance 3
Which regulatory body primarily governs disclosure requirements for publicly traded companies' PR communications in the United States?