CPRS Ethics & Legal Considerations in Public Relations 3 — Questions and Answers
Question 1: Which PRSA Code of Ethics provision specifically prohibits PR practitioners from representing conflicting or competing interests without full disclosure and consent of all parties?
- Honesty provision
- Conflicts of interest provision (Correct answer)
- Independence provision
- Loyalty provision
Correct answer: Conflicts of interest provision
The PRSA Code's conflicts of interest provision requires disclosure to all affected parties and their consent before a practitioner can represent competing interests.
Question 2: A company issues a press release containing misleading financial projections. Under securities law, the PR firm that distributed the release could face liability under:
- Section 230 of the Communications Decency Act
- SEC Rule 10b-5 (Correct answer)
- The Lanham Act
- The CAN-SPAM Act
Correct answer: SEC Rule 10b-5
SEC Rule 10b-5 prohibits material misrepresentations or omissions in connection with the purchase or sale of securities, and can apply to PR firms that knowingly distribute false financial information.
Question 3: The term 'astroturfing' in public relations ethics refers to:
- Hiring temporary spokespeople for short-term campaigns
- Creating fake grassroots support to simulate organic public opinion (Correct answer)
- Using artificial intelligence to generate press releases
- Placing PR staff inside newsrooms as embedded reporters
Correct answer: Creating fake grassroots support to simulate organic public opinion
Astroturfing creates the false appearance of widespread citizen support by disguising coordinated, funded campaigns as spontaneous grassroots movements.
Question 4: A PR practitioner uses a deceased celebrity's name in a press release without authorization. The estate could sue under which legal theory?
- Defamation
- Right of publicity (Correct answer)
- False light invasion of privacy
- Appropriation of name or likeness
Correct answer: Right of publicity
Right of publicity protects individuals (and in many states their estates posthumously) from unauthorized commercial use of their name, image, or likeness.
Question 5: When conducting media monitoring, a PR firm stores news articles containing personal data about private individuals. Which legal framework most directly governs this practice?
- Digital Millennium Copyright Act (DMCA)
- State privacy laws such as CCPA (Correct answer)
- Children's Online Privacy Protection Act (COPPA)
- Electronic Communications Privacy Act (ECPA)
Correct answer: State privacy laws such as CCPA
State privacy laws like California's CCPA govern how businesses collect, store, and process personal data, including data aggregated through media monitoring.
Question 6: A PR professional learns their employer is planning to announce material non-public information about an acquisition next week. The practitioner buys stock before the announcement. This constitutes:
- A legal investment since the practitioner is an employee
- Insider trading, a federal crime (Correct answer)
- A conflict of interest but not a crime
- An ethics violation but not illegal
Correct answer: Insider trading, a federal crime
Using material non-public information to trade securities is insider trading under SEC regulations, regardless of the trader's employment relationship with the company.
Question 7: Under the PRSA Code, which behavior violates the 'free flow of information' provision?
- Issuing embargoed press releases
- Blocking media access to a company spokesperson during a crisis (Correct answer)
- Using background briefings with reporters
- Distributing information through wire services
Correct answer: Blocking media access to a company spokesperson during a crisis
Deliberately blocking media access to information or sources during a crisis violates the PRSA's commitment to preserving the free flow of accurate and truthful information.
CPRS Ethics & Legal Considerations in Public Relations 3
Which PRSA Code of Ethics provision specifically prohibits PR practitioners from representing conflicting or competing interests without full disclosure and consent of all parties?