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IAPP CIPP-US Practice Test 2

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Question 1 / 40

What consumer protection did the Fair and Accurate Credit Transactions Act (FACTA) require?

The ability for the consumer to correct inaccurate credit report information

The ability for the consumer to correct inaccurate credit report information

The truncation of account numbers on credit card receipts

The truncation of account numbers on credit card receipts

The right to request removal from e-mail lists

The right to request removal from e-mail lists

Consumer notice when third-party data is used to make an adverse decision

Consumer notice when third-party data is used to make an adverse decision

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Suggested answer: B
Explanation:

The Fair and Accurate Credit Transactions Act (FACTA) is an amendment to the Fair Credit Reporting Act (FCRA) that was enacted in 2003. FACTA aims to enhance consumer protection against identity theft and fraud by requiring various measures, such as free annual credit reports, fraud alerts, and identity theft prevention programs. One of the consumer protections that FACTA requires is the truncation of account numbers on credit card receipts. This means that only the last four or five digits of the account number can be printed on the receipt, while the rest must be masked or deleted. This reduces the risk of unauthorized access or use of the account number by third parties who may obtain the receipt.Reference:

IAPP CIPP/US Body of Knowledge, Section III, B, 1

[IAPP CIPP/US Study Guide, Chapter 3, Section 3.2]

[FACTA, Section 113]

asked 22/11/2024
Minh Phan
33 questions