CPRS Ethics & Legal Considerations in Public Relations 2 — Questions and Answers
Question 1: A PR professional discovers their client has been quietly dumping chemical waste illegally. Under PRSA ethics guidelines, what is the most appropriate action?
- Continue representing the client and say nothing
- Advise the client to stop and disclose voluntarily, and resign if they refuse (Correct answer)
- Immediately alert media without informing the client
- Report only to internal legal counsel and take no further action
Correct answer: Advise the client to stop and disclose voluntarily, and resign if they refuse
PRSA ethics require practitioners to advise clients to act ethically and to withdraw from representation if the client refuses to correct illegal or harmful behavior.
Question 2: Which legal doctrine protects a company from defamation claims when employees make negative statements about a competitor during an internal strategy meeting?
- Absolute privilege
- Qualified privilege (Correct answer)
- Fair comment doctrine
- Wire service defense
Correct answer: Qualified privilege
Qualified privilege protects good-faith statements made in appropriate contexts, such as internal business communications, as long as there is no malice.
Question 3: A PR agency accepts payment from a pharmaceutical company to place positive news stories without disclosing the financial relationship. This practice is known as:
- Native advertising
- Pay-for-play journalism (Correct answer)
- Astroturfing
- Video news releases
Correct answer: Pay-for-play journalism
Pay-for-play journalism involves paid placement of favorable coverage without disclosure, which violates FTC guidelines and PRSA ethical standards.
Question 4: When a PR practitioner represents a client in a crisis and learns confidential information that contradicts the public statement being issued, the ethical obligation is to:
- Issue the public statement as directed regardless of the contradiction
- Refuse to issue the statement and immediately resign
- Counsel the client to align public statements with the truth before release (Correct answer)
- Disclose the confidential information to journalists independently
Correct answer: Counsel the client to align public statements with the truth before release
Practitioners must counsel clients toward truthful communication while maintaining confidentiality, using internal advocacy to align messaging with facts.
Question 5: Under FTC regulations, a celebrity endorser on social media must disclose a brand relationship when:
- They receive any material benefit including free products (Correct answer)
- They are paid more than $500 per post
- The brand specifically requests disclosure
- The post receives more than 10,000 views
Correct answer: They receive any material benefit including free products
FTC guidelines require disclosure of any material connection, including free products, services, or other non-monetary benefits, regardless of monetary value.
Question 6: A PR firm is hired by a foreign government to conduct advocacy in the United States. Which law primarily governs this arrangement?
- Foreign Corrupt Practices Act (FCPA)
- Foreign Agents Registration Act (FARA) (Correct answer)
- Lobbying Disclosure Act
- Federal Election Campaign Act
Correct answer: Foreign Agents Registration Act (FARA)
FARA requires agents working on behalf of foreign principals to register with the Department of Justice and disclose their activities and funding.
Question 7: A journalist asks a PR practitioner for 'off the record' comment. The practitioner provides information, but the journalist publishes it attributed to 'a company spokesperson.' The primary ethical violation is:
- Violation of the journalist's First Amendment rights
- Breach of the agreed-upon off-the-record ground rules by the journalist
- The practitioner's failure to get the agreement in writing (Correct answer)
- Both parties violated confidentiality obligations equally
Correct answer: The practitioner's failure to get the agreement in writing
While the journalist violated ground rules, PR best practice requires confirming off-the-record agreements explicitly, ideally in writing, to avoid this common misunderstanding.
A PR professional discovers their client has been quietly dumping chemical waste illegally.
Under PRSA ethics guidelines, what is the most appropriate action?