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CIPP-US Exam - Question 132


Which of the following is NOT one of three broad categories of products offered by data brokers, as identified by the U.S. Federal Trade Commission (FTC)?

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Correct Answer: A

The FTC has identified the three broad categories of products offered by data brokers as Marketing, Risk Mitigation, and People Search. Marketing products are used for targeted advertising and customer information augmentation. Risk Mitigation products involve tools for fraud prevention and identity verification. People Search products provide personal information for purposes like locating individuals or conducting background checks. Research, while valuable, is not listed by the FTC as one of the primary categories.

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AmbulocetusOption: A
Aug 20, 2023

The correct answer is A. The three broad categories of products offered by data brokers, as identified by the U.S. Federal Trade Commission (FTC), are: Marketing Products: These products include consumer information that is used for marketing purposes, such as creating targeted advertising campaigns, direct mail marketing, and telemarketing. Risk Mitigation Products: These products provide businesses with information to assess and manage risks, such as identity verification, fraud prevention, and anti-money laundering efforts. People Search Products: These products offer individuals' personal and contact information, which can be used for various purposes like locating people, reconnecting with lost contacts, and background checks.

[Removed]Option: A
May 15, 2023

The answer is A.

smp175Option: A
Jul 6, 2023

https://www.ftc.gov/system/files/documents/reports/data-brokers-call-transparency-accountability-report-federal-trade-commission-may-2014/140527databrokerreport.pdf

ChickenlegOption: C
Jun 20, 2023

No answer is C. The three categories are people search, marketing and risk management.

[Removed]
Jun 25, 2023

See page 427 of the book...

BhimeshOption: A
Apr 12, 2024

The FTC identified three broad categories of products offered by data brokers at that time: (1) marketing (such as appending data to customer information that a marketing company already has), (2) risk mitigation (such as information that may reduce the risk of fraud) and (3) location of individuals (such as identification of an individual from partial information). For each of these segments of the industry, the FTC suggested that data brokers engage in data minimization practices, review collection practices carefully as they relate to children and teens, and take reasonable precautions to ensure that downstream users do not use the data for discriminatory or criminal purposes.