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 GDPR require of ecommerce businesses that sell to customers in the European Union?
Answer: Explicit consent before collecting personal data and the right for users to request data deletion
GDPR (General Data Protection Regulation) requires businesses to obtain clear consent for data collection and grants EU residents rights including data access, correction, and erasure.
What is the California Consumer Privacy Act (CCPA) most relevant to for ecommerce businesses?
Answer: Giving California residents the right to know what personal data is collected and to opt out of its sale
CCPA grants California residents the right to know what personal data businesses collect, the right to delete it, and the right to opt out of having their data sold to third parties.
What is a Terms of Service (ToS) agreement on an ecommerce website primarily designed to do?
Answer: Define the legal rules and guidelines that users must agree to in order to use the website and services
A ToS agreement outlines the legal relationship between the merchant and the user, covering acceptable use, dispute resolution, limitations of liability, and intellectual property.
Under US law, what does the CAN-SPAM Act regulate for ecommerce businesses?
Answer: Commercial email marketing practices including opt-out requirements and prohibitions on deceptive subject lines
The CAN-SPAM Act sets rules for commercial email, requiring honest subject lines, a physical address, and a clear unsubscribe mechanism that must be honored within 10 business days.
What is the purpose of a privacy policy on an ecommerce website?
Answer: To inform customers what personal data is collected, how it is used, and how it is protected
A privacy policy is a legal document disclosing how a business collects, uses, stores, and shares customer personal data, and is legally required in most jurisdictions.
What is the FTC's role in regulating ecommerce businesses in the United States?
Answer: Enforcing consumer protection laws including preventing deceptive advertising and unfair business practices
The FTC (Federal Trade Commission) enforces laws against deceptive advertising, fake reviews, undisclosed affiliate relationships, and other unfair ecommerce practices.