CIPP/US: Certified Information Privacy Professional/United StatesDemo

By IAPP · Question Mode

QuestionQ138

Federal Privacy Laws

Consumers today are most likely protected from situations like Noah’s stock purchase by which federal action or legislation?

  • A The rules under the Fair Debt Collection Practices Act.
  • B The creation of the Consumer Financial Protection Bureau.
  • C Federal Trade Commission investigations into “unfair and deceptive” acts or practices.
  • D Investigations of “abusive” acts and practices under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Explanation

Section 5 of the FTC Act gives the Federal Trade Commission broad, long-standing authority to investigate and take action against 'unfair or deceptive acts or practices' in commerce, including misleading sales pitches used to induce a consumer into a bad investment. This general-purpose consumer protection authority — rather than the narrower, more recently created CFPB abusive-acts standard aimed at consumer financial products and services, or debt-collection-specific FDCPA rules — is what today most directly protects consumers from the kind of deceptive stock-sale conduct described.

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