Certified Information Privacy Professional – United States (CIPP/US) — Question 147

Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Answer options

• A. Financial institutions must avoid collecting a customer’s sensitive personal information
• B. Financial institutions must help ensure a customer’s understanding of products and services
• C. Financial institutions must use a prescribed level of encryption for most types of customer records
• D. Financial institutions must cease sending e-mails and other forms of advertising to customers who opt out of direct marketing

Correct answer: B

Explanation

The correct answer, B, emphasizes the requirement for financial institutions to ensure customers comprehend the products and services they are offered, which is a key aspect of consumer protection. Options A and C focus on data collection and encryption, which, while important, are not direct implications of the Dodd-Frank Act. Option D pertains to marketing practices but does not capture the essence of consumer understanding mandated by the Act.