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
Under FTC rules, a speed reading course advertising "triple your reading speed in 7 days" must be able to provide what?
Answer: Competent and reliable evidence substantiating the claim
The FTC requires advertisers to possess competent and reliable evidence substantiating objective performance claims before making them.
A speed reading course uses copyrighted book excerpts as practice passages. Which doctrine might permit limited use without permission?
Answer: Fair use
Fair use under U.S. copyright law may allow limited educational use of copyrighted excerpts depending on purpose, amount, and market effect.
Which law governs the privacy of education records for a speed reading program operated by a federally funded school?
Answer: FERPA
FERPA protects the privacy of student education records at institutions receiving federal education funds.
An online speed reading platform collects data from users under age 13. Which U.S. regulation primarily applies?
Answer: COPPA
COPPA requires verifiable parental consent before collecting personal information from children under 13 online.
Testimonials in speed reading course ads that show atypical results must include what, per FTC endorsement guides?
Answer: A clear disclosure of generally expected results
FTC endorsement guides require that testimonials reflecting atypical results disclose the results consumers can generally expect.
A speed reading course sells prepaid lesson packages. Which compliance concern most directly applies to unused prepaid fees?
Answer: State refund and prepaid-services consumer protection laws
Many states regulate refunds and cancellation rights for prepaid instructional services under consumer protection statutes.
Which practice best demonstrates truth-in-advertising compliance for a speed reading course's website?
Answer: Citing documented study results with clear methodology behind speed claims
Substantiating claims with documented, methodologically sound evidence aligns with FTC truth-in-advertising standards.