B2B Regulatory Compliance & Legal Framework 3 — Questions and Answers
Question 1: Under GDPR, which legal basis is most commonly used by B2B marketers to justify processing business contact data for direct marketing?
- Vital interests
- Legitimate interests (Correct answer)
- Public task
- Legal obligation
Correct answer: Legitimate interests
GDPR's 'legitimate interests' basis allows B2B processing when the marketer's interest is balanced against the individual's rights, commonly applied for business-to-business outreach.
Question 2: What is the primary purpose of a Data Processing Agreement (DPA) in B2B relationships?
- To set payment terms for data licensing
- To legally bind processors to handle personal data according to controller instructions and privacy laws (Correct answer)
- To grant marketing automation tool access
- To define SLAs for data delivery
Correct answer: To legally bind processors to handle personal data according to controller instructions and privacy laws
A DPA is a legally required contract between data controllers and processors that specifies data handling obligations under GDPR and similar regulations.
Question 3: Which antitrust concern is most relevant when B2B competitors share marketing data or pricing information at industry events?
- Predatory pricing
- Price-fixing and collusion (Correct answer)
- Tying arrangements
- Exclusive dealing
Correct answer: Price-fixing and collusion
Sharing pricing or competitive data among rivals can constitute illegal price-fixing or collusion under the Sherman Antitrust Act, even if informal.
Question 4: A B2B SaaS company stores client data in the cloud. Under GDPR, what must they ensure about their cloud provider?
- The provider must be ISO 27001 certified
- A Data Processing Agreement must be in place with the provider (Correct answer)
- The provider must be headquartered in the EU
- The provider must undergo annual GDPR audits by the client
Correct answer: A Data Processing Agreement must be in place with the provider
GDPR requires controllers to have a DPA with any processor (including cloud vendors) that handles personal data on their behalf.
Question 5: In B2B marketing, what constitutes 'implied consent' under CASL for sending commercial electronic messages?
- The recipient signed up for a newsletter
- An existing business relationship within the past two years (Correct answer)
- The recipient opened a prior email
- The company's domain is publicly listed
Correct answer: An existing business relationship within the past two years
CASL recognizes implied consent based on an existing business or non-business relationship, typically within the prior two years, without requiring explicit opt-in.
Question 6: What is 'disparagement' in the context of B2B marketing law?
- Failure to disclose paid endorsements
- False statements that harm a competitor's business reputation or products (Correct answer)
- Unauthorized use of a competitor's trademark in advertising
- Misrepresenting product certifications to prospects
Correct answer: False statements that harm a competitor's business reputation or products
Commercial disparagement (trade libel) involves knowingly or recklessly making false statements about a competitor's products, services, or business that cause economic harm.
Question 7: A B2B company acquires a list of business emails from a third-party vendor. Under GDPR, what must they verify before using it?
- The list must be fewer than 10,000 contacts
- The data subjects gave valid consent or there is another lawful basis for the planned processing (Correct answer)
- The vendor must be EU-based
- The emails must be verified active within 90 days
Correct answer: The data subjects gave valid consent or there is another lawful basis for the planned processing
Under GDPR, controllers must ensure a lawful basis exists for processing—including purchased lists—and verify that original data collection was compliant.
B2B Regulatory Compliance & Legal Framework 3
Under GDPR, which legal basis is most commonly used by B2B marketers to justify processing business contact data for direct marketing?