Certified Information Privacy Professional – United States (CIPP/US) — Question 213

Which venture would be subject to the requirements of Section 5 of the Federal Trade Commission Act?

Answer options

• A. A local nonprofit charity’s fundraiser
• B. An online merchant’s free shipping offer
• C. A national bank’s no-fee checking promotion
• D. A city bus system’s frequent rider program

Correct answer: B

Explanation

The correct answer is B because Section 5 of the Federal Trade Commission Act applies to commercial practices that can deceive consumers, and an online merchant's free shipping offer falls under this category. The other options, while they may involve promotions or offers, do not represent commercial activities that would be regulated by the FTC in the same way.