Practice Test Geeks(SPC) Speed Reading Course Practice Test
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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 — missed cards come back until you master them.

Read the first 7 Industry Regulations & Compliance flashcards as text

  1. A speed reading provider receives a data breach exposing student emails and passwords. Most U.S. states require what?

    Answer: Timely notification to affected individuals under breach notification laws

    All U.S. states have breach notification laws requiring timely notice to individuals whose personal information was compromised.

  2. Which record-keeping practice best supports compliance for advertised speed reading outcome claims?

    Answer: Retaining the studies, test data, and methodology backing each claim

    Retaining substantiation materials lets the provider demonstrate a reasonable basis for claims if regulators inquire.

  3. A speed reading course targets veterans using GI Bill funds. Misleading recruitment practices could trigger scrutiny from which agency?

    Answer: The Department of Veterans Affairs

    The VA oversees GI Bill program approval and can act against schools using misleading recruitment of veterans.

  4. A refund policy stating "no refunds under any circumstances" may conflict with what?

    Answer: State consumer protection and cooling-off statutes

    Blanket no-refund policies can violate state consumer protection laws that grant cancellation or cooling-off rights.

  5. A course provider texts marketing messages to prospects without consent. Which law is most directly implicated?

    Answer: The TCPA (Telephone Consumer Protection Act)

    The TCPA restricts telemarketing texts and calls made without the recipient's prior express consent.

  6. When comparing its results to a rival course in advertising, a speed reading company must ensure the comparison is what?

    Answer: Truthful, substantiated, and not misleading

    Comparative advertising is legal but must be truthful and substantiated, or it risks FTC action and Lanham Act false-advertising claims.

  7. A speed reading academy hires instructors as "independent contractors" but controls their hours, methods, and materials. What is the compliance risk?

    Answer: Worker misclassification under labor and tax law

    Exercising employer-level control over contractors risks misclassification liability for unpaid taxes, wages, and benefits.