CES Legal, Compliance & Privacy in Ecommerce

Question 1

What does GDPR require of ecommerce businesses that sell to customers in the European Union?

Accepted Answer

Explicit consent before collecting personal data and the right for users to request data deletion

Answer

Mandatory registration with EU government bodies before operating online

Answer

Storing all EU customer data on servers physically located in the EU only

Answer

Publishing product prices in euros regardless of the merchant's home currency

Question 2

What is the California Consumer Privacy Act (CCPA) most relevant to for ecommerce businesses?

Accepted Answer

Giving California residents the right to know what personal data is collected and to opt out of its sale

Answer

Requiring California businesses to collect sales tax on all online transactions

Answer

Mandating cybersecurity audits for businesses selling to California residents

Answer

Limiting the types of products that can be sold online to California residents

Question 3

What is a Terms of Service (ToS) agreement on an ecommerce website primarily designed to do?

Accepted Answer

Define the legal rules and guidelines that users must agree to in order to use the website and services

Answer

Guarantee refunds and returns to all customers unconditionally

Answer

Comply with FTC advertising disclosure requirements

Answer

Establish the merchant's shipping rates and delivery timeframes

Question 4

Under US law, what does the CAN-SPAM Act regulate for ecommerce businesses?

Accepted Answer

Commercial email marketing practices including opt-out requirements and prohibitions on deceptive subject lines

Answer

Spam product listings and counterfeit goods on ecommerce platforms

Answer

Unsolicited text message marketing campaigns

Answer

Automated phone calls to customers for marketing purposes

Question 5

What is the purpose of a privacy policy on an ecommerce website?

Accepted Answer

To inform customers what personal data is collected, how it is used, and how it is protected

Answer

To outline the merchant's policy on pricing and promotional offers

Answer

To disclose affiliate marketing relationships to customers

Answer

To describe the security certifications the payment processor holds

Question 6

What is the FTC's role in regulating ecommerce businesses in the United States?

Accepted Answer

Enforcing consumer protection laws including preventing deceptive advertising and unfair business practices

Answer

Setting import duties and tariffs for international ecommerce shipments

Answer

Regulating the technical security standards for payment card processing

Answer

Issuing ecommerce operating licenses to online retailers