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NEW QUESTION 57
SCENARIO
Please use the following to answer the next question:
TripBliss Inc. is a travel service company which has lost substantial revenue over the last few years. Their new manager, Oliver, suspects that this is partly due to the company's outdated website. After doing some research, he meets with a sales representative from the up-and-coming IT company Techiva, hoping that they can design a new, cutting-edge website for TripBliss Inc.'s foundering business.
During negotiations, a Techiva representative describes a plan for gathering more customer information through detailed Questionaires, which could be used to tailor their preferences to specific travel destinations.
TripBliss Inc. can choose any number of data categories - age, income, ethnicity - that would help them best accomplish their goals. Oliver loves this idea, but would also like to have some way of gauging how successful this approach is, especially since the Questionaires will require customers to provide explicit consent to having their data collected. The Techiva representative suggests that they also run a program to analyze the new website's traffic, in order to get a better understanding of how customers are using it. He explains his plan to place a number of cookies on customer devices. The cookies will allow the company to collect IP addresses and other information, such as the sites from which the customers came, how much time they spend on the TripBliss Inc. website, and which pages on the site they visit. All of this information will be compiled in log files, which Techiva will analyze by means of a special program. TripBliss Inc. would receive aggregate statistics to help them evaluate the website's effectiveness. Oliver enthusiastically engages Techiva for these services.
Techiva assigns the analytics portion of the project to longtime account manager Leon Santos. As is standard practice, Leon is given administrator rights to TripBliss Inc.'s website, and can authorize access to the log files gathered from it. Unfortunately for TripBliss Inc., however, Leon is taking on this new project at a time when his dissatisfaction with Techiva is at a high point. In order to take revenge for what he feels has been unfair treatment at the hands of the company, Leon asks his friend Fred, a hobby hacker, for help. Together they come up with the following plan: Fred will hack into Techiva's system and copy their log files onto a USB stick. Despite his initial intention to send the USB to the press and to the data protection authority in order to denounce Techiva, Leon experiences a crisis of conscience and ends up reconsidering his plan. He decides instead to securely wipe all the data from the USB stick and inform his manager that the company's system of access control must be reconsidered.
If TripBliss Inc. decides not to report the incident to the supervisory authority, what would be their BEST defense?
- A. The resulting obligation to notify data subjects would involve disproportionate effort.
- B. The incident resulted from the actions of a third-party that were beyond their control.
- C. The sensitivity of the categories of data involved in the incident was not substantial enough.
- D. The destruction of the stolen data makes any risk to the affected data subjects unlikely.
Answer: B
NEW QUESTION 58
SCENARIO
Please use the following to answer the next question:
Brady is a computer programmer based in New Zealand who has been running his own business for two years.
Brady's business provides a low-cost suite of services to customers throughout the European Economic Area (EEA). The services are targeted towards new and aspiring small business owners. Brady's company, called Brady Box, provides web page design services, a Social Networking Service (SNS) and consulting services that help people manage their own online stores.
Unfortunately, Brady has been receiving some complaints. A customer named Anna recently uploaded her plans for a new product onto Brady Box's chat area, which is open to public viewing. Although she realized her mistake two weeks later and removed the document, Anna is holding Brady Box responsible for not noticing the error through regular monitoring of the website. Brady believes he should not be held liable.
Another customer, Felipe, was alarmed to discover that his personal information was transferred to a third- party contractor called Hermes Designs and worries that sensitive information regarding his business plans may be misused. Brady does not believe he violated European privacy rules. He provides a privacy notice to all of his customers explicitly stating that personal data may be transferred to specific third parties in fulfillment of a requested service. Felipe says he read the privacy notice but that it was long and complicated Brady continues to insist that Felipe has no need to be concerned, as he can personally vouch for the integrity of Hermes Designs. In fact, Hermes Designs has taken the initiative to create sample customized banner advertisements for customers like Felipe. Brady is happy to provide a link to the example banner ads, now posted on the Hermes Designs webpage. Hermes Designs plans on following up with direct marketing to these customers.
Brady was surprised when another customer, Serge, expressed his dismay that a quotation by him is being used within a graphic collage on Brady Box's home webpage. The quotation is attributed to Serge by first and last name. Brady, however, was not worried about any sort of litigation. He wrote back to Serge to let him know that he found the quotation within Brady Box's Social Networking Service (SNS), as Serge himself had posted the quotation. In his response, Brady did offer to remove the quotation as a courtesy.
Despite some customer complaints, Brady's business is flourishing. He even supplements his income through online behavioral advertising (OBA) via a third-party ad network with whom he has set clearly defined roles.
Brady is pleased that, although some customers are not explicitly aware of the OBA, the advertisements contain useful products and services.
Based on current trends in European privacy practices, which aspect of Brady Box' Online Behavioral Advertising (OBA) is most likely to be insufficient if the company becomes established in Europe?
- A. The contract with the third-party advertising network.
- B. The lack of the option to opt in.
- C. The need to have the contents of the advertising approved.
- D. The level of security within the website.
Answer: B
NEW QUESTION 59
Which aspect of the GDPR will likely have the most impact on the consistent implementation of data protection laws throughout the Canda?
- A. That it takes the form of a Regulation as opposed to a Directive
- B. That it makes notification of large-scale data breaches mandatory
- C. That it essentially functions as a one-stop shop mechanism
- D. That it makes appointment of a data protection officer mandatory
Answer: D
NEW QUESTION 60
All of the following are tasks in the "Discover" phase of building an information management program EXCEPT?
- A. Understanding the laws that regulate a company's collection of information
- B. Deciding how aggressive to be in the use of personal information
- C. Developing a process for review and update of privacy policies
- D. Facilitating participation across departments and levels
Answer: A
NEW QUESTION 61
Company X has entrusted the processing of their payroll data to Provider Y. Provider Y stores this encrypted data on its server. The IT department of Provider Y finds out that someone managed to hack into the system and take a copy of the data from its server. In this scenario, whom does Provider Y have the obligation to notify?
- A. Law enforcement
- B. Company X
- C. The public
- D. The supervisory authority
Answer: A
NEW QUESTION 62
SCENARIO
Please use the following to answer the next question:
Javier is a member of the fitness club EVERFIT. This company has branches in many EU member states, but for the purposes of the GDPR maintains its primary establishment in France. Javier lives in Newry, Northern Ireland (part of the U.K.), and commutes across the border to work in Dundalk, Ireland. Two years ago while on a business trip, Javier was photographed while working out at a branch of EVERFIT in Frankfurt, Germany. At the time, Javier gave his consent to being included in the photograph, since he was told that it would be used for promotional purposes only. Since then, the photograph has been used in the club's U.K.
brochures, and it features in the landing page of its U.K. website. However, the fitness club has recently fallen into disrepute due to widespread mistreatment of members at various branches of the club in several EU member states. As a result, Javier no longer feels comfortable with his photograph being publicly associated with the fitness club.
After numerous failed attempts to book an appointment with the manager of the local branch to discuss this matter, Javier sends a letter to EVETFIT requesting that his image be removed from the website and all promotional materials. Months pass and Javier, having received no acknowledgment of his request, becomes very anxious about this matter. After repeatedly failing to contact EVETFIT through alternate channels, he decides to take action against the company.
Javier contacts the U.K. Information Commissioner's Office ('ICO' - the U.K.'s supervisory authority) to lodge a complaint about this matter. The ICO, pursuant to Article 56 (3) of the GDPR, informs the CNIL (i.e.
the supervisory authority of EVERFIT's main establishment) about this matter. Despite the fact that EVERFIT has an establishment in the U.K., the CNIL decides to handle the case in accordance with Article 60 of the GDPR. The CNIL liaises with the ICO, as relevant under the cooperation procedure. In light of issues amongst the supervisory authorities to reach a decision, the European Data Protection Board becomes involved and, pursuant to the consistency mechanism, issues a binding decision.
Additionally, Javier sues EVERFIT for the damages caused as a result of its failure to honor his request to have his photograph removed from the brochure and website.
Assuming that multiple EVETFIT branches across several EU countries are acting as separate data controllers, and that each of those branches were responsible for mishandling Javier's request, how may Javier proceed in order to seek compensation?
- A. He will have to sue the EVETFIT's head office in France, where EVETFIT has its main establishment.
- B. He will be able to sue any one of the relevant EVETFIT branches, as each one may be held liable for the entire damage.
- C. He will be able to apply to the European Data Protection Board in order to determine which particular EVETFIT branch is liable for damages, based on the decision that was made by the board.
- D. He will have to sue each EVETFIT branch so that each branch provides proportionate compensation commensurate with its contribution to the damage or distress suffered by Javier.
Answer: A
NEW QUESTION 63
Under Article 21 of the GDPR, a controller must stop profiling when requested by a data subject, unless it can demonstrate compelling legitimate grounds that override the interests of the individual. In the Guidelines on Automated individual decision-making and Profiling, the WP 29 says the controller needs to do all of the following to demonstrate that it has such legitimate grounds EXCEPT?
- A. Demonstrate that the profiling is for the purposes of direct marketing.
- B. Carry out an exercise that weighs the interests of the controller and the basis for the data subject's objection.
- C. Consider the importance of the profiling to their particular objective.
- D. Consider the impact of the profiling on the data subject's interest, rights and freedoms.
Answer: A
NEW QUESTION 64
According to Article 14 of the GDPR, how long does a controller have to provide a data subject with necessary privacy information, if that subject's personal data has been obtained from other sources?
- A. Within a reasonable period after obtaining the personal data, but no later than eight weeks.
- B. Within a reasonable period after obtaining the personal data, but no later than one month.
- C. As soon as possible after obtaining the personal data.
- D. As soon as possible after the first communication with the data subject.
Answer: C
NEW QUESTION 65
SCENARIO
Please use the following to answer the next QUESTION:
Matt went into his son's bedroom one evening and found him stretched out on his bed typing on his laptop. "Doing your network?" Matt asked hopefully.
"No," the boy said. "I'm filling out a survey."
Matt looked over his son's shoulder at his computer screen. "What kind of survey?" "It's asking Questions about my opinions."
"Let me see," Matt said, and began reading the list of Questions that his son had already answered. "It's asking your opinions about the government and citizenship. That's a little odd. You're only ten." Matt wondered how the web link to the survey had ended up in his son's email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.
To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer Questions about his favorite games and toys.
Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son's inbox, and he decided it was time to report the incident to the proper authorities.
How could the marketer have best changed its privacy management program to meet COPPA "Safe Harbor" requirements?
- A. By receiving FTC approval for the content of its emails
- B. By making a COPPA privacy notice available on website
- C. By regularly assessing the security risks to consumer privacy
- D. By participating in an approved self-regulatory program
Answer: A
NEW QUESTION 66
Which of the following best describes private-sector workplace monitoring in the United States?
- A. Most employees are protected from workplace monitoring by the U.S. Constitution
- B. Judgments in private lawsuits have severely limited the monitoring of employees
- C. Employers have broad authority to monitor their employees
- D. U.S. federal law restricts monitoring only to industries for which it is necessary
Answer: C
NEW QUESTION 67
SCENARIO
Please use the following to answer the next QUESTION:
You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A.
HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B.
As part of HealthCo's business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth's security measures.A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals - ones that exposed the PHI of public figures including celebrities and politicians.
During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual's ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient's attorney has submitted a discovery request for the ePHI exposed in the breach.
What is the most effective kind of training CloudHealth could have given its employees to help prevent this type of data breach?
- A. Training on techniques for identifying phishing attempts
- B. Training on CloudHealth's HR policy regarding the role of employees involved data breaches
- C. Training on the difference between confidential and non-public information
- D. Training on the terms of the contractual agreement with HealthCo
Answer: A
NEW QUESTION 68
Which change was introduced by the 2009 amendments to the e-Privacy Directive 2002/58/EC?
- A. A mandatory notification for personal data breaches applicable to all data controllers.
- B. A mandatory notification for personal data breaches applicable to electronic communication providers.
- C. A voluntary notification for personal data breaches applicable to electronic communication providers.
- D. A voluntary notification for personal data breaches applicable to all data controllers.
Answer: B
NEW QUESTION 69
Many businesses print their employees' photographs on building passes, so that employees can be identified by security staff. This is notwithstanding the fact that facial images potentially qualify as biometric data under the GDPR. Why would such practice be permitted?
- A. Because employees are deemed to have given their explicit consent when they agree to be photographed by their employer.
- B. Because photographs qualify as biometric data only when they undergo a "specific technical processing".
- C. Because use of biometric data to confirm the unique identification of data subjects benefits from an exemption.
- D. Because photographic ID is a physical security measure which is "necessary for reasons of substantial public interest".
Answer: B
Explanation:
Explanation
Reference https://ess.csa.canon.com/rs/206-CLL-191/images/IAPP-Top-10-Operational-Impacts-of- GDPR.pdf?TC=DM&CN=CSA_OMNIA_Partners&CS=CSA&CR=T1_Gov%20GenNonProfit (11)
NEW QUESTION 70
How is the retention of communications traffic data for law enforcement purposes addressed by Canadian data protection law?
- A. The ePrivacy Directive allows individual to engage in such data retention.
- B. The Data Retention Directive's annulment makes such data retention now permissible.
- C. The GDPR allows the retention of such data for the prevention, investigation, detection or prosecution of criminal offences only.
- D. The ePrivacy Directive harmonizes rules concerning such data retention.
Answer: C
NEW QUESTION 71
SCENARIO
Please use the following to answer the next QUESTION
Otto is preparing a report to his Board of Directors at Filtration Station, where he is responsible for the privacy program. Filtration Station is a U.S. company that sells filters and tubing products to pharmaceutical companies for research use. The company is based in Seattle, Washington, with offices throughout the U.S. and Asi a. It sells to business customers across both the U.S. and the Asia-Pacific region. Filtration Station participates in the Cross-Border Privacy Rules system of the APEC Privacy Framework.
Unfortunately, Filtration Station suffered a data breach in the previous quarter. An unknown third party was able to gain access to Filtration Station's network and was able to steal data relating to employees in the company's Human Resources database, which is hosted by a third-party cloud provider based in the U.S. The HR data is encrypted. Filtration Station also uses the third-party cloud provider to host its business marketing contact database. The marketing database was not affected by the data breach. It appears that the data breach was caused when a system administrator at the cloud provider stored the encryption keys with the data itself.
The Board has asked Otto to provide information about the data breach and how updates on new developments in privacy laws and regulations apply to Filtration Station. They are particularly concerned about staying up to date on the various U.S. state laws and regulations that have been in the news, especially the California Consumer Privacy Act (CCPA) and breach notification requirements.
The Board has asked Otto whether the company will need to comply with the new California Consumer Privacy Law (CCPA). What should Otto tell the Board?
- A. That business contact information could be considered personal information governed by CCPA.
- B. That CCPA only applies to companies based in California, which exempts the company from compliance.
- C. That the company is governed by CCPA, but does not need to take any additional steps because it follows CPBR.
- D. That CCPA will apply to the company only after the California Attorney General determines that it will enforce the statute.
Answer: D
NEW QUESTION 72
Which is an exception to the general prohibitions on telephone monitoring that exist under the U.S. Wiretap Act?
- A. Ordinary course of business exception
- B. Call center exception
- C. Internet calls exception
- D. Inter-company communications exception
Answer: A
NEW QUESTION 73
Under Article 30 of the GDPR, controllers are required to keep records of all of the following EXCEPT?
- A. Categories of recipients to whom the personal data have been disclosed.
- B. Data inventory or data mapping exercises that have been conducted.
- C. Retention periods for erasure and deletion of categories of personal data.
- D. Incidents of personal data breaches, whether disclosed or not.
Answer: C
NEW QUESTION 74
Which authority supervises and enforces laws regarding advertising to children via the Internet?
- A. The Federal Communications Commission
- B. The Department of Homeland Security
- C. The Federal Trade Commission
- D. The Office for Civil Rights
Answer: C
NEW QUESTION 75
When would a data subject NOT be able to exercise the right to portability?
- A. When the processing is necessary to perform a task in the exercise of authority vested in the controller.
- B. When the data was supplied to the controller by the data subject.
- C. When the processing is based on consent.
- D. When the processing is carried out pursuant to a contract with the data subject.
Answer: A
NEW QUESTION 76
Which of the following entities would most likely be exempt from complying with the GDPR?
- A. A Chinese company that has opened a satellite office in a European Union (EU) member state to service European customers.
- B. A South American company that regularly collects European customers' personal data.
- C. A company that stores all customer data in Australia and is headquartered in a European Union (EU) member state.
- D. A North American company servicing customers in South Africa that uses a cloud storage system made by a European company.
Answer: A
NEW QUESTION 77
Under the GDPR, who would be LEAST likely to be allowed to engage in the collection, use, and disclosure of a data subject's sensitive medical information without the data subject's knowledge or consent?
- A. A journalist writing an article relating to the medical condition in QUESTION, who believes that the publication of such information is in the public interest.
- B. A health professional involved in the medical care for the data subject, where the data subject's life hinges on the timely dissemination of such information.
- C. A member of the judiciary involved in adjudicating a legal dispute involving the data subject and concerning the health of the data subject.
- D. A public authority responsible for public health, where the sharing of such information is considered necessary for the protection of the general populace.
Answer: D
NEW QUESTION 78
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The Need for IAPP CIPP-C Exam
A Certified Information Privacy Professional is necessary for all organizations that handle personal information. IAPP CIPP-C certification Exam has become a must-have necessity in today's global environment. The necessity of this certification is derived from the ever-increasing responsibilities that organizations have to comply with data protection laws and the need to meet the expectations of clients, users, and regulators. Scenario-based IAPP CIPP-C exam dumps questions are prepared by the IAPP CIPP-C certification team based on their extensive research into best practices. Understand how to manage compliance with privacy laws, regulations, codes of conduct, policies, procedures, and best practices including the importance of compliance staff training. Supersedes the Privacy Management section of the old CIPP exam.
Enacted laws require organizations to have a current understanding of data protection laws. Sufficient knowledge of privacy and data protection laws is also important for organizations that handle personal data on a global basis. Secure success in the CIPP-C exam will require that candidates have a thorough understanding of privacy and data protection laws that are applicable to their organizations. Select, collect, protect, retain, use and dispose of data appropriately with regard to meeting legal requirements and managing risks. Contained in this area is the protection of sensitive data, such as personal information and financial data.
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