CEC Legal & Regulatory Compliance 4

Question 1

Which US federal law requires companies to notify consumers when their unencrypted personal information may have been accessed in a data breach?

Accepted Answer

There is no single federal breach notification law — it is governed by state laws

Answer

The US has no single federal data breach notification law; instead, all 50 states have enacted their own breach notification statutes with varying requirements.

Question 2

An ecommerce retailer wants to use dynamic pricing that charges different customers different prices. Under US law, this practice is:

Accepted Answer

Generally legal but prohibited if based on protected class characteristics

Answer

Dynamic pricing is generally legal in the US but becomes unlawful price discrimination when pricing differentials are based on protected class characteristics such as race or national origin.

Question 3

Under GDPR, a 'data processor' differs from a 'data controller' in that the processor:

Accepted Answer

Processes data on behalf of the controller without determining processing purposes

Answer

A data processor acts on the controller's instructions and does not independently determine the purpose or means of processing, though processors still have direct GDPR obligations.

Question 4

A US ecommerce site uses behavioral tracking cookies. Under which regulatory framework must it obtain informed consent before placing non-essential cookies on EU visitors' browsers?

Accepted Answer

ePrivacy Directive (Cookie Law) and GDPR together

Answer

The ePrivacy Directive requires prior informed consent for non-essential cookies, while GDPR governs the personal data collected through those cookies, making both applicable.

Question 5

The FTC's 'Made in USA' standard for ecommerce product labeling requires that:

Accepted Answer

All or virtually all of the product must be made in the US

Answer

The FTC's 'Made in USA' standard requires that all or virtually all significant parts, processing, and labor are US-origin, with no or negligible foreign content.

(CEC) Certified Ecommerce Consultant Practice Test

(CEC) Certified Ecommerce Consultant Practice Test

CEC Legal & Regulatory Compliance 4