Legal, Compliance & Privacy in Ecommerce Flashcards
6 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Legal, Compliance & Privacy in Ecommerce flashcards as text
What does 'internet sales tax nexus' mean for US ecommerce merchants?
Answer: A sufficient connection between the merchant and a state that triggers an obligation to collect and remit sales tax
Following the South Dakota v. Wayfair Supreme Court ruling, merchants with economic nexus in a state (e.g., $100K in sales or 200 transactions) must collect and remit that state's sales tax.
What is the purpose of ADA (Americans with Disabilities Act) compliance for ecommerce websites?
Answer: To ensure websites are accessible to people with disabilities through features like screen reader compatibility
ADA compliance for websites requires that digital content be accessible to users with disabilities, typically following WCAG guidelines, to avoid discrimination and legal liability.
What are FTC endorsement guidelines primarily concerned with for ecommerce influencer marketing?
Answer: Requiring clear disclosure when influencers are paid or receive products to promote a brand
FTC endorsement guidelines require that paid partnerships, gifted products, and affiliate relationships be clearly and conspicuously disclosed to consumers in influencer content.
What does COPPA (Children's Online Privacy Protection Act) require of ecommerce websites?
Answer: Verifiable parental consent before collecting personal information from children under 13
COPPA applies to websites directed at children or knowingly collecting data from those under 13, requiring parental consent and strict data handling practices.
What is the primary legal risk of using customer product reviews that contain misleading claims on an ecommerce site?
Answer: FTC enforcement action for facilitating deceptive advertising and potential consumer lawsuits
The FTC holds merchants responsible for reviews displayed on their sites; allowing fake, incentivized without disclosure, or materially misleading reviews can trigger enforcement actions and fines.
What is the purpose of a cookie consent banner on US and EU ecommerce websites?
Answer: To obtain user consent for tracking cookies as required by privacy laws like GDPR and CCPA
Cookie consent banners inform users about tracking technologies used on the site and, under GDPR and similar laws, obtain explicit consent before placing non-essential cookies.