Social Media Advertising Regulatory Frameworks & Compliance 3 — Questions and Answers
Question 1: A brand runs retargeting ads using a pixel. Under GDPR, what must happen before the pixel fires for EU website visitors?
- The advertiser must file a data processing agreement with the EU
- Visitors must give freely-given, specific, informed, and unambiguous consent (Correct answer)
- The pixel can fire automatically if privacy policy is posted
- Data must be anonymized before the pixel collects it
Correct answer: Visitors must give freely-given, specific, informed, and unambiguous consent
GDPR requires explicit, informed consent before non-essential cookies or tracking pixels can collect data from EU visitors.
Question 2: Which term describes the requirement that social media platforms must label AI-generated content used in political ads in the U.S.?
- Creative transparency
- Synthetic media disclosure (Correct answer)
- AI watermarking mandate
- Deepfake labeling
Correct answer: Synthetic media disclosure
Synthetic media disclosure requirements mandate that political advertisers reveal when AI-generated imagery, audio, or video is used in ads.
Question 3: Under the Telephone Consumer Protection Act (TCPA), which action requires prior express written consent?
- Sending a single transactional SMS to a customer
- Using an autodialer to send marketing text messages (Correct answer)
- Emailing a promotional offer to an existing customer
- Running a paid social media ad targeting mobile users
Correct answer: Using an autodialer to send marketing text messages
The TCPA requires prior express written consent before using an automatic telephone dialing system (autodialer) to send marketing SMS messages.
Question 4: What does NAI (Network Advertising Initiative) self-regulatory membership primarily require of ad networks?
- Filing quarterly data reports with the FTC
- Providing opt-out tools for interest-based advertising (Correct answer)
- Deleting all user data every 90 days
- Using only first-party data for targeting
Correct answer: Providing opt-out tools for interest-based advertising
NAI members must provide consumers with a meaningful opt-out from interest-based advertising as part of the industry self-regulatory framework.
Question 5: A pharmaceutical company runs social media ads promoting a prescription drug. Which regulatory body has jurisdiction over the ad claims?
- FTC only
- FDA only
- Both FTC and FDA (Correct answer)
- DEA
Correct answer: Both FTC and FDA
Both the FDA (regulating drug claims and fair balance requirements) and the FTC (regulating deceptive advertising) have authority over prescription drug advertising.
Question 6: Which scenario would violate Meta's Advertising Policies regarding prohibited content?
- An ad promoting a licensed casino in a jurisdiction where gambling is legal
- An ad for a personal injury law firm with a testimonial
- An ad selling legal firearms accessories that bypasses background checks (Correct answer)
- An ad for an alcohol brand with age-gating enabled
Correct answer: An ad selling legal firearms accessories that bypasses background checks
Meta prohibits ads that promote products or services designed to circumvent firearm regulations, including accessories that help bypass background checks.
Question 7: What is the maximum civil penalty per violation of the FTC Act for deceptive advertising as of 2024?
- $5,000
- $50,000
- $51,744 (Correct answer)
- $500,000
Correct answer: $51,744
The FTC can seek civil penalties up to $51,744 per violation (adjusted annually for inflation) for deceptive or unfair business practices.
Social Media Advertising Regulatory Frameworks & Compliance 3
A brand runs retargeting ads using a pixel.
Under GDPR, what must happen before the pixel fires for EU website visitors?