CEC Legal & Regulatory Compliance 3

Question 1

Under the FTC's Negative Option Rule (updated 2023), what must a seller provide before enrolling a customer in a negative option program?

Accepted Answer

Clear and conspicuous disclosure of all material terms before obtaining consent

Answer

The updated FTC Negative Option Rule requires clear and conspicuous disclosure of all material subscription terms before obtaining the consumer's billing consent.

Question 2

A US-based ecommerce site uses customer testimonials in its advertising. Under FTC Endorsement Guidelines, which disclosure is required when a reviewer received free products?

Accepted Answer

Clear and conspicuous disclosure of the material connection

Answer

FTC Endorsement Guidelines require clear and conspicuous disclosure of any material connection between the endorser and the seller, including receiving free products.

Question 3

The Electronic Communications Privacy Act (ECPA) primarily governs which ecommerce activity?

Accepted Answer

Interception and disclosure of electronic communications

Answer

ECPA prohibits unauthorized interception and disclosure of electronic communications including emails, prohibiting access to stored electronic communications without authorization.

Question 4

When an ecommerce business stores EU customer data on US servers, which mechanism is commonly used to legitimize these cross-border data transfers after the invalidation of Privacy Shield?

Accepted Answer

Standard Contractual Clauses (SCCs)

Answer

Standard Contractual Clauses (SCCs) are the most widely used mechanism for legitimizing EU-to-US data transfers after Privacy Shield was invalidated by the Schrems II ruling.

Question 5

Under the Americans with Disabilities Act (ADA), US courts have increasingly ruled that ecommerce websites must:

Accepted Answer

Meet WCAG 2.1 AA accessibility standards

Answer

US courts have broadly applied ADA Title III to ecommerce websites, requiring conformance with WCAG 2.1 AA guidelines to ensure accessibility for people with disabilities.

(CEC) Certified Ecommerce Consultant Practice Test

(CEC) Certified Ecommerce Consultant Practice Test

CEC Legal & Regulatory Compliance 3