CCM Regulatory Compliance & Legal Framework 2 — Questions and Answers
Question 1: Under the CAN-SPAM Act, how quickly must a business honor an opt-out request from an email recipient?
- Within 24 hours
- Within 10 business days (Correct answer)
- Within 30 days
- Within 5 business days
Correct answer: Within 10 business days
The CAN-SPAM Act requires businesses to honor opt-out requests within 10 business days of receiving them.
Question 2: Which legal doctrine allows content marketers to use limited portions of copyrighted material for commentary or criticism without permission?
- Work-for-hire doctrine
- Fair use doctrine (Correct answer)
- First-sale doctrine
- Safe harbor doctrine
Correct answer: Fair use doctrine
The fair use doctrine permits limited use of copyrighted material for purposes such as commentary, criticism, education, and parody.
Question 3: A content marketer posts a customer testimonial claiming '95% of users lost 20 lbs in 30 days.' What FTC requirement applies?
- The claim must include a disclaimer that results are not typical (Correct answer)
- The claim is prohibited entirely under FTC rules
- The claim must cite a peer-reviewed study
- The claim must be accompanied by the user's full name
Correct answer: The claim must include a disclaimer that results are not typical
The FTC requires that atypical testimonial results include a clear disclosure that the depicted results are not typical for most consumers.
Question 4: Which regulation primarily governs how US companies must handle the personal data of European Union residents?
- CCPA
- COPPA
- GDPR (Correct answer)
- HIPAA
Correct answer: GDPR
The General Data Protection Regulation (GDPR) governs the processing of personal data of EU residents, applying to any company that handles such data regardless of location.
Question 5: A sponsored Instagram post by an influencer fails to disclose the paid relationship. Who bears primary FTC liability?
- The influencer only
- The brand only
- Both the influencer and the brand (Correct answer)
- Instagram as the platform
Correct answer: Both the influencer and the brand
The FTC holds both the influencer and the sponsoring brand liable for failure to disclose material connections in sponsored content.
Question 6: What does the term 'right to erasure' refer to under GDPR?
- A company's right to delete outdated marketing data
- An individual's right to have their personal data deleted upon request (Correct answer)
- A regulator's right to delete non-compliant company databases
- A website's right to remove user-generated content
Correct answer: An individual's right to have their personal data deleted upon request
The 'right to erasure,' also called the 'right to be forgotten,' allows individuals to request deletion of their personal data held by a company.
Question 7: Which of the following is NOT a required element of a valid copyright notice?
- The copyright symbol © or the word 'Copyright'
- The year of first publication
- The name of the copyright owner
- The country of registration (Correct answer)
Correct answer: The country of registration
A valid copyright notice requires the © symbol or word 'Copyright,' the year of first publication, and the owner's name — country of registration is not required.
CCM Regulatory Compliance & Legal Framework 2
Under the CAN-SPAM Act, how quickly must a business honor an opt-out request from an email recipient?