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Industry Regulations & Compliance Flashcards

7 cards from real SPC practice questions. Tap to flip, then mark Knew It or Still Learning โ€” missed cards come back until you master them.

Read the first 7 Industry Regulations & Compliance flashcards as text
  1. A speed reading company enrolls California residents online. Which law gives those students rights over their personal data?

    Answer: The CCPA (California Consumer Privacy Act)

    The CCPA grants California consumers rights to know, delete, and opt out of the sale of their personal information.

  2. Enrolling European students in an online speed reading course triggers obligations under which regulation?

    Answer: The GDPR

    The GDPR applies when offering services to individuals in the EU, requiring a lawful basis for processing their personal data.

  3. A speed reading course offers a "free trial" that automatically converts to a paid subscription. Compliance requires what?

    Answer: Clear disclosure of auto-renewal terms and easy cancellation before billing

    Negative-option and auto-renewal rules require clear upfront disclosure of billing terms and a simple cancellation method.

  4. Which claim about a speed reading course would carry the highest legal risk without documentation?

    Answer: "Guaranteed to make anyone read 10,000 words per minute with full comprehension"

    An extreme guaranteed-outcome claim is an objective performance promise that is nearly impossible to substantiate and invites deception charges.

  5. A course provider wants to reuse a competitor's registered course name in its ads. This primarily risks violating what?

    Answer: Trademark law

    Using a competitor's registered brand name in a confusing way can constitute trademark infringement.

  6. Before selling a speed reading curriculum built by a contractor, the company should verify what compliance point?

    Answer: That a written agreement assigns the contractor's copyright to the company

    Independent contractors own their work by default, so a written copyright assignment is needed before the company can sell it.

  7. A speed reading school advertises "accredited" status. This is compliant only if what is true?

    Answer: A recognized accrediting body has actually granted accreditation

    Claiming accreditation without recognition from a legitimate accrediting body is a deceptive practice.