CES Legal, Compliance & Privacy in Ecommerce 3

Question 1

What is a DMCA takedown notice used for in ecommerce?

Accepted Answer

To request removal of infringing content (e.g., stolen product images or descriptions) from a website

Answer

To notify payment processors of fraudulent transactions

Answer

To alert customers about a data breach involving their personal information

Answer

To report counterfeit products to marketplace platforms

Question 2

What does intellectual property protection mean for an ecommerce brand's product photos?

Accepted Answer

Original product photos are automatically protected by copyright, preventing others from using them without permission

Answer

Product photos must be registered with the US Copyright Office to receive protection

Answer

Photos of products can be freely used by anyone since the physical products are not protected

Answer

Only photos containing visible trademarks or logos receive copyright protection

Question 3

What is the significance of 'data minimization' as a principle in ecommerce privacy compliance?

Accepted Answer

Collecting only the personal data that is necessary for the stated business purpose

Answer

Minimizing the number of data servers used to store customer information

Answer

Reducing the frequency of data backup to minimize storage costs

Answer

Limiting the number of employees who have access to the company database

Question 4

What is the purpose of a merchant's refund and return policy from a legal standpoint?

Accepted Answer

To establish clear contractual terms that set customer expectations and limit potential legal disputes

Answer

To meet federal refund mandate requirements applicable to all US ecommerce businesses

Answer

To qualify for lower chargeback rates from payment processors

Answer

To comply with FTC advertising disclosure regulations

Question 5

What does 'right to be forgotten' mean for ecommerce businesses serving EU customers?

Accepted Answer

Customers can request that the merchant delete all their personal data from the business's systems

Answer

Customers can request removal of negative reviews they have written

Answer

Businesses can delete inactive customer accounts after 12 months without notice

Answer

Customers can request their purchase history be hidden from internal analytics

Question 6

Which US regulation requires ecommerce merchants to notify customers when their personal data has been compromised in a breach?

Accepted Answer

State data breach notification laws (varying by state, with all 50 states having such laws)

Answer

Federal HIPAA regulations

Answer

The PCI DSS compliance framework

Answer

The FTC Act Section 5