Regulatory Compliance & Legal Framework Flashcards

Which federal agency primarily enforces the Fair Credit Reporting Act (FCRA) against businesses that misuse consumer reports?

Answer: Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB)

The FTC and CFPB share enforcement authority over FCRA compliance, with the CFPB primarily overseeing larger financial entities and the FTC addressing other businesses.

A subject files a lawsuit claiming an investigator committed 'invasion of privacy — intrusion upon seclusion.' Which element would the plaintiff NOT need to prove?

Answer: The plaintiff suffered economic damages as a direct result of the intrusion

Intrusion upon seclusion does not require proof of economic damages; the tort is complete upon an offensive, intentional intrusion into a private space or matter, with emotional distress sufficient as damages.

Under the Stored Communications Act (SCA), which entity is prohibited from voluntarily disclosing the contents of electronic communications to third parties without user consent?

Answer: Electronic communication service providers such as email or messaging platforms

The SCA (18 U.S.C. § 2702) restricts electronic communication service providers from voluntarily disclosing stored message contents to unauthorized third parties.

An investigator working an insurance fraud case photographs a claimant performing physical activities inconsistent with claimed injuries. To be most useful in litigation, the investigator should ensure the photos:

Answer: Are unaltered, date/time stamped, and accompanied by a contemporaneous log of observations establishing foundation

Photographic evidence must be authentic and unaltered, with proper foundation documentation (time, date, location, circumstances) to be admissible and credible in litigation.

Which of the following best describes the 'public records exception' relevant to private investigator information gathering?

Answer: Information officially recorded and maintained by government agencies for public inspection may generally be accessed without a subpoena

Public records — such as court filings, property deeds, and government licenses — are maintained for public inspection and generally accessible without legal process, forming a key investigative resource.

A private investigator is found to have made a false statement in a sworn affidavit submitted to support a civil court filing. The MOST serious legal consequence the investigator faces is:

Answer: Criminal prosecution for perjury or making false statements, in addition to civil liability and potential license revocation

False statements in a sworn affidavit constitute perjury, a criminal offense, and may also expose the investigator to civil liability and professional license revocation.

When a private investigator is retained by an attorney, which ethical rule most directly governs the investigator's obligation to avoid using deceptive tactics that the supervising attorney could not ethically direct?

Answer: ABA Model Rule 5.3, which holds supervising attorneys responsible for the conduct of non-attorney assistants they direct

ABA Model Rule 5.3 requires attorneys to ensure that non-lawyer assistants they supervise comply with the Rules of Professional Conduct, making the attorney accountable for directing investigators to use impermissible tactics.