CIPT practice question 6 of 30
SCENARIO Carol was a U.S.-based glassmaker who sold her work at art festivals. She kept things simple by only accepting cash and personal checks. As…
Full set: 220 questionsIn the United States, the Federal Trade Commission (FTC) is the primary federal agency with jurisdiction over consumer protection, which includes data privacy and security. The FTC uses its authority under Section 5 of the FTC Act to take enforcement action against organizations for "unfair or deceptive acts or practices." Collecting customer data from checks for payment and then using it for marketing without notice or consent, as Sam did, could be considered a deceptive practice. The FTC has broad authority to regulate the data management practices of most commercial entities, like Carol's shop.
B. The Department of Commerce is involved in privacy policy and frameworks (e.g., international data transfers) but is not the primary domestic enforcement agency for consumer privacy.
C. A Data Protection Authority (DPA) is the term for the national privacy regulator in the European Union and other jurisdictions with similar comprehensive laws; the U.S. does not have one.
D. The Federal Communications Commission (FCC) has jurisdiction over telecommunications services and broadcast media, not the general data practices of a retail business.
1. Federal Trade Commission. Protecting Consumer Privacy and Security. This section of the FTC's official website details its mission and enforcement authority under Section 5 of the FTC Act. (See ftc.gov/business-guidance/privacy-security).
2. Solove, D. J., & Hartzog, W. (2014). The FTC and the New Common Law of Privacy. Columbia Law Review, 114(3), 583-676. This academic article provides a comprehensive analysis of the FTC's role as the de facto chief federal privacy regulator in the U.S.
3. IAPP. (2019). U.S. Private-Sector Privacy: Law and Practice for the CIPP/US (3rd ed.). Chapter 2, "The U.S. Legal and Regulatory System," extensively details the role and authority of the FTC in privacy and data security enforcement. (This is an official IAPP publication, appropriate for exam context).
Keep practicing
Take the free CIPT practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other CIPT practice questions
- Question 1Not updating software for a system that processes human resources data with the latest se…
- Question 2There are two groups of users. In a company, where one group Is allowed to see credit car…
- Question 3What can be used to determine the type of data in storage without exposing its contents?
- Question 4Which privacy engineering objective proposed by the US National Institute of Science and …
- Question 5SCENARIO Looking back at your first two years as the Director of Personal Information Pro…
- Question 7Truncating the last octet of an IP address because it is NOT needed is an example of whic…
