Social Media Advertising Regulatory Frameworks & Compliance 4

Question 1

What is 'ad fraud' in social media advertising and which regulation most directly addresses liability for it?

Accepted Answer

Invalid traffic inflating impressions; addressed through FTC Act unfair practices provisions

Answer

Ad fraud involves invalid traffic or fake engagements that waste advertiser spend, and the FTC Act's prohibition on unfair practices is the primary regulatory framework.

Question 2

Which FTC rule, finalized in 2023, specifically targets fake reviews and testimonials on social media platforms?

Accepted Answer

Trade Regulation Rule on Fake Reviews and Testimonials

Answer

The FTC's Trade Regulation Rule on Fake Reviews and Testimonials (2023) prohibits buying fake reviews, insider reviews without disclosure, and suppressing negative reviews.

Question 3

Under GDPR, what is the maximum fine for the most serious violations, such as unlawfully processing user data for ad targeting?

Accepted Answer

€20 million or 4% of global annual turnover

Answer

GDPR's Tier 2 maximum fine is €20 million or 4% of the company's total global annual turnover, whichever is higher.

Question 4

A U.S. advertiser using lookalike audiences based on email lists must ensure compliance with which document before uploading customer data to a platform?

Accepted Answer

Platform's terms of service and a customer data processing agreement

Answer

Advertisers must comply with platform terms of service and have a data processing agreement confirming they collected the customer data with proper consent.

Question 5

What does 'viewability' compliance require in digital advertising standards set by the MRC (Media Rating Council)?

Accepted Answer

At least 50% of pixels visible for at least 1 continuous second for display ads

Answer

MRC's viewability standard for display ads requires at least 50% of the ad's pixels to be in-view for a minimum of one continuous second.

Social Media Advertising Practice Test

Social Media Advertising Practice Test

Social Media Advertising Regulatory Frameworks & Compliance 4