Exam CIPP-US topic 1 question 16 discussion

The correct answer is B. An online merchant’s free shipping offer. Reference: The IAPP textbook, U.S. Private-Sector Privacy, 4th Edition, 2024, Section 5.3.1 FTC Jurisdiction: "Because Section 5 of the FTC Act refers to unfair and deceptive practices “in commerce,” this means that nonprofit organizations are not covered. Also, under the FTC Act, the commission’s powers do not extend to certain industries, including banks and other federally regulated financial institutions, as well as common carriers, such as the transportation and communications industries."

Section 5 of the FTC Act applies to unfair and deceptive practices “in commerce,” and does not apply to nonprofit organizations. The commission’s powers also do not extend to certain industries, including banks, other federally regulated financial institutions, and common carriers such as the transportation and communications industries.

Answer is B through the simple process of elimination and the right answer remains. A and D are local issues (FTC), so federal commerce jurisdiction. FTC doesn't have jurisdiction over banks, so eliminate C. B fits because it is interstate commerce that affects potentially anyone, anywhere in the US. Keep in mind it's only asking what "venture" is subject to FTC regulation, not what venture violated FTC regulations so don't bother trying to figure out if the venture did something wrong.