Social Media Marketing Regulatory Frameworks & Compliance 2 — Questions and Answers
Question 1: Under the FTC's endorsement guidelines, when must an influencer disclose a paid partnership?
- Only when the payment exceeds $500
- Every time they post sponsored content, regardless of amount (Correct answer)
- Only on platforms with more than 10,000 followers
- Only when the brand explicitly requests a disclosure
Correct answer: Every time they post sponsored content, regardless of amount
The FTC requires disclosure every single time sponsored content is posted, with no minimum payment threshold.
Question 2: Which US law primarily governs the collection of personal data from children under 13 on social media platforms?
- GDPR
- CCPA
- COPPA (Correct answer)
- CAN-SPAM Act
Correct answer: COPPA
COPPA (Children's Online Privacy Protection Act) requires verifiable parental consent before collecting data from children under 13.
Question 3: A brand asks an employee to post positive reviews about its products without disclosing their employment. This violates which regulation?
- CAN-SPAM Act
- FTC Endorsement Guides (Correct answer)
- CCPA
- TCPA
Correct answer: FTC Endorsement Guides
The FTC Endorsement Guides require material connections—including employment—to be clearly disclosed in reviews and testimonials.
Question 4: What does the term 'material connection' mean in FTC disclosure rules?
- A physical product sent for review
- Any relationship that could affect the credibility of an endorsement (Correct answer)
- A monetary payment over $250
- An official brand ambassador contract
Correct answer: Any relationship that could affect the credibility of an endorsement
A material connection includes any relationship—payment, free products, family ties, employment—that could influence an endorsement's credibility.
Question 5: Under GDPR, which legal basis is most commonly used by social media marketers to send promotional emails to EU subscribers?
- Legitimate interest
- Vital interests
- Explicit consent (Correct answer)
- Legal obligation
Correct answer: Explicit consent
Explicit (freely given, specific, informed) consent is the most straightforward and commonly used lawful basis for marketing emails under GDPR.
Question 6: Which disclosure label does the FTC consider INSUFFICIENT for sponsored Instagram posts?
- #ad
- #sponsored
- #partner
- #spon (Correct answer)
Correct answer: #spon
#spon is considered too ambiguous and not clearly understood by consumers, unlike #ad or #sponsored which are widely recognized.
Question 7: A US company wants to run a social media sweepstakes. Which legal requirement must it fulfill?
- Pay a federal sweepstakes registration fee
- Include 'No Purchase Necessary' and official rules (Correct answer)
- Restrict entry to users over 21
- Obtain FCC approval before launching
Correct answer: Include 'No Purchase Necessary' and official rules
US sweepstakes law requires 'No Purchase Necessary' language and clear official rules to distinguish sweepstakes from illegal lotteries.
Social Media Marketing Regulatory Frameworks & Compliance 2
Under the FTC's endorsement guidelines, when must an influencer disclose a paid partnership?