Question 1
Under the FTC Act Section 5, what constitutes an 'unfair' practice in data collection?
Show answer & explanation
Correct answer: A - Practices causing substantial injury not outweighed by benefits
10 free, exam-style Pass Your CIPP/US First Try (CIPPUS) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CIPPUS practice test to study every exam domain.
Under the FTC Act Section 5, what constitutes an 'unfair' practice in data collection?
Correct answer: A - Practices causing substantial injury not outweighed by benefits
Scenario: A company misrepresents its data security in its privacy policy, leading to a breach. The FTC investigates. What is the primary basis for enforcement? The policy claimed 'bank-level security' but used weak measures.
Correct answer: A - Deceptive acts or practices
What age threshold requires parental consent under COPPA for online data collection?
Correct answer: A - Under 13
Scenario: An app targeted at children collects geolocation data without verifiable parental consent. What law is violated? The app is for users aged 8-12 and shares data with advertisers.
Correct answer: A - COPPA
Which of the following is NOT considered personal information under COPPA?
Correct answer: A - Favorite color alone
What does the FTC consider a 'deceptive' practice in privacy notices?
Correct answer: A - Misleading statements about data use
Scenario: A website for kids under 13 uses behavioral advertising without parental notice. What COPPA requirement is missing? The site tracks user activity across sessions.
Correct answer: A - Direct notice to parents
Under COPPA, what is required for verifiable parental consent?
Correct answer: A - Methods like credit card verification or signed form
What FTC action can result from repeated unfair privacy practices?
Correct answer: A - Consent decrees with monitoring
Scenario: An online service collects voice recordings from children without consent. Is this COPPA-compliant? The service is a game app for ages 10-12.
Correct answer: A - No, voice is personal information
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