CMA Marketing Ethics & Legal Compliance 1

Question 1

What does the CAN-SPAM Act regulate in the United States?

Accepted Answer

Commercial email messaging, including requirements for opt-out mechanisms and sender identification

Answer

Social media advertising standards

Answer

Television advertising content

Answer

Telemarketing call scripts

Question 2

Under FTC guidelines, when must social media influencers disclose paid partnerships?

Accepted Answer

Always, whenever they receive payment, free products, or other compensation to promote a brand

Answer

Only when the payment exceeds $500

Answer

Only when posting on platforms with more than 1 million users

Answer

Only when the brand requests disclosure

Question 3

What is 'greenwashing' in marketing?

Accepted Answer

Making misleading environmental claims to appear more sustainable than a company or product actually is

Answer

Using green color schemes in brand design

Answer

Environmentally friendly packaging design

Answer

A strategy to market products to eco-conscious consumers honestly

Question 4

What is the principle of 'marketing ethics'?

Accepted Answer

Applying moral standards and values to marketing decisions to ensure honesty, fairness, and respect for consumers

Answer

Maximizing profit through any available means

Answer

Complying with only the minimum legal requirements

Answer

Setting the highest possible prices the market will bear

Question 5

What does GDPR stand for, and how does it affect US marketers targeting EU consumers?

Accepted Answer

General Data Protection Regulation; US companies must comply if they collect data from EU residents

Answer

General Data Rights Protocol; it has no impact on US marketers

Answer

Global Digital Privacy Rule; it only applies to EU companies

Answer

Government Data Privacy Regulation; it requires US government approval

Question 6

What is 'deceptive advertising' under FTC standards?

Accepted Answer

Advertising that contains a material misrepresentation or omission likely to mislead a reasonable consumer

Answer

Advertising that uses humor or exaggeration

Answer

Advertising targeted at niche audiences

Answer

Comparative advertising that mentions competitors by name