Social Media Marketing Regulatory Frameworks & Compliance 5 — Questions and Answers
Question 1: What is the main requirement for a contest run on Facebook under Meta's platform policies?
- Contests must be managed through a third-party app or a brand's Page, not personal timelines (Correct answer)
- All prizes must be under $500 in value
- Winners must be selected by Facebook's algorithm
- Contests must run for a minimum of 7 days
Correct answer: Contests must be managed through a third-party app or a brand's Page, not personal timelines
Meta's policies require that promotions be administered through Pages or apps, and explicitly prohibit using personal timelines to run contests.
Question 2: An advertiser targets LinkedIn ads based on users' inferred political opinions. Why is this problematic under GDPR?
- LinkedIn does not allow B2B advertising
- Political opinions are special category data requiring explicit consent under GDPR (Correct answer)
- GDPR prohibits all behavioral targeting in the EU
- LinkedIn's terms ban all demographic targeting
Correct answer: Political opinions are special category data requiring explicit consent under GDPR
GDPR Article 9 classifies political opinions as special category data, requiring explicit consent and stronger protections than ordinary personal data.
Question 3: Under SEC regulations, what must financial firms do when employees post investment-related content on social media?
- Ban all employee social media activity
- Archive and supervise social media communications as business records (Correct answer)
- Require all posts to be pre-approved by the SEC
- Limit posts to LinkedIn only
Correct answer: Archive and supervise social media communications as business records
SEC rules require broker-dealers and investment advisers to retain and supervise social media communications as they would any other business communication.
Question 4: A social media manager for a US airline posts flight safety information. Which additional regulatory body's guidelines may apply beyond FTC rules?
- EPA (Environmental Protection Agency)
- FAA (Federal Aviation Administration) (Correct answer)
- OSHA (Occupational Safety and Health Administration)
- USDA (US Department of Agriculture)
Correct answer: FAA (Federal Aviation Administration)
The FAA regulates aviation safety communications, meaning airline social media content about safety must comply with both FTC truth-in-advertising rules and FAA guidelines.
Question 5: What does 'privacy by design' mean for social media marketing teams building new campaigns?
- Using privacy-themed creative assets in ad visuals
- Incorporating data protection considerations into campaign planning from the start (Correct answer)
- Restricting campaigns to users who have opted into a privacy program
- Anonymizing all ad targeting data after campaigns end
Correct answer: Incorporating data protection considerations into campaign planning from the start
Privacy by design means integrating data protection principles into the planning and architecture of marketing campaigns from the outset, not as an afterthought.
Question 6: Which statement correctly describes the FTC's stance on 'clear and conspicuous' disclosures in social media posts?
- Disclosures placed in a bio or profile description satisfy the requirement
- Disclosures must be placed where consumers are likely to notice them before engaging with content (Correct answer)
- Only text disclosures qualify; visual disclosures are insufficient
- Disclosures are only required in the first post of a campaign
Correct answer: Disclosures must be placed where consumers are likely to notice them before engaging with content
The FTC requires disclosures to be placed prominently in the post itself—not buried in a profile bio—so consumers see them before consuming the content.
Question 7: A DTC brand collects social media users' email addresses through a giveaway. Under CAN-SPAM, which action is required on every subsequent marketing email sent?
- Include the brand's physical mailing address and a working opt-out mechanism (Correct answer)
- Re-confirm consent every 90 days
- Attach a PDF copy of the brand's privacy policy
- Send emails only between 8am and 9pm recipient local time
Correct answer: Include the brand's physical mailing address and a working opt-out mechanism
CAN-SPAM requires every commercial email to include a valid physical postal address and a clear, functioning mechanism for recipients to opt out of future emails.
Social Media Marketing Regulatory Frameworks & Compliance 5
What is the main requirement for a contest run on Facebook under Meta's platform policies?