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Pass CIPP-C Exam - Real Questions & Answers
NEW QUESTION 39
SCENARIO
Please use the following to answer the next QUESTION:
Edufox has hosted an annual convention of users of its famous e-learning software platform, and over time, it has become a grand event. It fills one of the large downtown conference hotels and overflows into the others, with several thousand attendees enjoying three days of presentations, panel discussions and networking. The convention is the centerpiece of the company's product rollout schedule and a great training opportunity for current users. The sales force also encourages prospective clients to attend to get a better sense of the ways in which the system can be customized to meet diverse needs and understand that when they buy into this system, they are joining a community that feels like family.
This year's conference is only three weeks away, and you have just heard news of a new initiative supporting it: a smartphone app for attendees. The app will support late registration, highlight the featured presentations and provide a mobile version of the conference program. It also links to a restaurant reservation system with the best cuisine in the areas featured. "It's going to be great," the developer, Deidre Hoffman, tells you, "if, that is, we actually get it working!" She laughs nervously but explains that because of the tight time frame she'd been given to build the app, she outsourced the job to a local firm. "It's just three young people," she says, "but they do great work." She describes some of the other apps they have built. When asked how they were selected for this job, Deidre shrugs. "They do good work, so I chose them." Deidre is a terrific employee with a strong track record. That's why she's been charged to deliver this rushed project. You're sure she has the best interests of the company at heart, and you don't doubt that she's under pressure to meet a deadline that cannot be pushed back. However, you have concerns about the app's handling of personal data and its security safeguards. Over lunch in the break room, you start to talk to her about it, but she quickly tries to reassure you, "I'm sure with your help we can fix any security issues if we have to, but I doubt there'll be any. These people build apps for a living, and they know what they're doing.
You worry too much, but that's why you're so good at your job!"
Which is the best first step in understanding the data security practices of a potential vendor?
- A. Conducting a penetration test of the vendor's data security structure.
- B. Conducting a physical audit of the vendor's facilities.
- C. Examining investigation records of any breaches the vendor has experienced.
- D. Requiring the vendor to complete a questionaire assessing International Organization for Standardization (ISO) 27001 compliance.
Answer: C
NEW QUESTION 40
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 member of the judiciary involved in adjudicating a legal dispute involving the data subject and concerning the health of the data subject.
- 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 journalist writing an article relating to the medical condition in QUESTION, who believes that the publication of such information is in the public interest.
- 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 41
Which GDPR principle would a Spanish employer most likely depend upon to annually send the personal data of its employees to the national tax authority?
- A. The protection of the vital interest of the employees.
- B. The legal obligation of the employer.
- C. The consent of the employees.
- D. The legitimate interest of the public administration.
Answer: B
NEW QUESTION 42
SCENARIO
Please use the following to answer the next question:
Due to rapidly expanding workforce, Company A has decided to outsource its payroll function to Company B.
Company B is an established payroll service provider with a sizable client base and a solid reputation in the industry.
Company B's payroll solution for Company A relies on the collection of time and attendance data obtained via a biometric entry system installed in each of Company A's factories. Company B won't hold any biometric data itself, but the related data will be uploaded to Company B's UK servers and used to provide the payroll service. Company B's live systems will contain the following information for each of Company A's employees:
* Name
* Address
* Date of Birth
* Payroll number
* National Insurance number
* Sick pay entitlement
* Maternity/paternity pay entitlement
* Holiday entitlement
* Pension and benefits contributions
* Trade union contributions
Jenny is the compliance officer at Company A. She first considers whether Company A needs to carry out a data protection impact assessment in relation to the new time and attendance system, but isn't sure whether or not this is required.
Jenny does know, however, that under the GDPR there must be a formal written agreement requiring Company B to use the time and attendance data only for the purpose of providing the payroll service, and to apply appropriate technical and organizational security measures for safeguarding the data. Jenny suggests that Company B obtain advice from its data protection officer. The company doesn't have a DPO but agrees, in the interest of finalizing the contract, to sign up for the provisions in full. Company A enters into the contract.
Weeks later, while still under contract with Company A, Company B embarks upon a separate project meant to enhance the functionality of its payroll service, and engages Company C to help. Company C agrees to extract all personal data from Company B's live systems in order to create a new database for Company B.
This database will be stored in a test environment hosted on Company C's U.S. server. The two companies agree not to include any data processing provisions in their services agreement, as data is only being used for IT testing purposes.
Unfortunately, Company C's U.S. server is only protected by an outdated IT security system, and suffers a cyber security incident soon after Company C begins work on the project. As a result, data relating to Company A's employees is visible to anyone visiting Company C's website. Company A is unaware of this until Jenny receives a letter from the supervisory authority in connection with the investigation that ensues. As soon as Jenny is made aware of the breach, she notifies all affected employees.
Under the GDPR, which of Company B's actions would NOT be likely to trigger a potential enforcement action?
- A. Their failure to provide sufficient security safeguards to Company A's data.
- B. Their omission of data protection provisions in their contract with Company C.
- C. Their decision to operate without a data protection officer.
- D. Their engagement of Company C to improve their payroll service.
Answer: D
NEW QUESTION 43
A German data subject was the victim of an embarrassing prank 20 years ago. A newspaper website published an article about the prank at the time, and the article is still available on the newspaper's website.
Unfortunately, the prank is the top search result when a user searches on the victim's name. The data subject requests that SearchCo delist this result. SearchCo agrees, and instructs its technology team to avoid scanning or indexing the article. What else must SearchCo do?
- A. Fully erase the URL to the content, as opposed to delist which is mainly based on data subject's name.
- B. Identify other controllers who are processing the same information and inform them of the delisting request.
- C. Notify the newspaper that its article it is delisting the article.
- D. Prevent the article from being listed in search results no matter what search terms are entered into the search engine.
Answer: C
NEW QUESTION 44
Which area of privacy is a lead supervisory authority's (LSA) MAIN concern?
- A. Cross-border processing
- B. Data subject rights
- C. Special categories of data
- D. Data access disputes
Answer: A
NEW QUESTION 45
When may browser settings be relied upon for the lawful application of cookies?
- A. When users are aware of the ability to adjust their settings.
- B. When a user rejects cookies that are strictly necessary.
- C. When it is impossible to bypass the choices made by users in their browser settings.
- D. When users are provided with information about which cookies have been set.
Answer: A
NEW QUESTION 46
What should a controller do after a data subject opts out of a direct marketing activity?
- A. Refrain from processing personal data relating to the data subject for the relevant type of communication.
- B. Without undue delay, provide information to the data subject on the action that will be taken.
- C. Without exception, securely delete all personal data relating to the data subject.
- D. Take reasonable steps to inform third-party recipients that the data subject's personal data should be deleted and no longer processed.
Answer: A
NEW QUESTION 47
What is a reason the European Court of Justice declared the Data Retention Directive invalid in 2014?
- A. The requirements specified that data must be held within the EU.
- B. The requirements affected individuals without exception.
- C. The requirements had limitations on how national authorities could use data.
- D. The requirements were financially burdensome to EU businesses.
Answer: C
NEW QUESTION 48
What must be included in a written agreement between the controller and processor in relation to processing conducted on the controller's behalf?
- A. An obligation on the processor to assist the controller in complying with the controller's obligations to notify the supervisory authority about personal data breaches.
- B. An obligation on both parties to report any serious personal data breach to the supervisory authority.
- C. An obligation on both parties to agree to a termination of the agreement if the other party is responsible for a personal data breach.
- D. An obligation on the processor to report any personal data breach to the controller within 72 hours.
Answer: B
NEW QUESTION 49
A company is located in a country NOT considered by the European Union (EU) to have an adequate level of data protection. Which of the following is an obligation of the company if it imports personal data from another organization in the European Economic Area (EEA) under standard contractual clauses?
- A. Supply any information requested by a data protection authority (DPA) within 30 days.
- B. Ensure that local laws do not impede the company from meeting its contractual obligations.
- C. Submit the contract to its own government authority.
- D. Ensure that notice is given to and consent is obtained from data subjects.
Answer: C
NEW QUESTION 50
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 appointment of a data protection officer mandatory
- C. That it makes notification of large-scale data breaches mandatory
- D. That it essentially functions as a one-stop shop mechanism
Answer: B
NEW QUESTION 51
SCENARIO
Please use the following to answer the next question:
The fitness company Vigotron has recently developed a new app called M-Health, which it wants to market on its website as a free download. Vigotron's marketing manager asks his assistant Emily to create a webpage that describes the app and specifies the terms of use. Emily, who is new at Vigotron, is excited about this task.
At her previous job she took a data protection class, and though the details are a little hazy, she recognizes that Vigotron is going to need to obtain user consent for use of the app in some cases. Emily sketches out the following draft, trying to cover as much as possible before sending it to Vigotron's legal department.
Registration Form
Vigotron's new M-Health app makes it easy for you to monitor a variety of health-related activities, including diet, exercise, and sleep patterns. M-Health relies on your smartphone settings (along with other third-party apps you may already have) to collect data about all of these important lifestyle elements, and provide the information necessary for you to enrich your quality of life. (Please click here to read a full description of the services that M-Health provides.) Vigotron values your privacy. The M-Heaith app allows you to decide which information is stored in it, and which apps can access your data. When your device is locked with a passcode, all of your health and fitness data is encrypted with your passcode. You can back up data stored in the Health app to Vigotron's cloud provider, Stratculous. (Read more about Stratculous here.) Vigotron will never trade, rent or sell personal information gathered from the M-Health app. Furthermore, we will not provide a customer's name, email address or any other information gathered from the app to any third- party without a customer's consent, unless ordered by a court, directed by a subpoena, or to enforce the manufacturer's legal rights or protect its business or property.
We are happy to offer the M-Health app free of charge. If you want to download and use it, we ask that you first complete this registration form. (Please note that use of the M-Health app is restricted to adults aged 16 or older, unless parental consent has been given to minors intending to use it.)
* First name:
* Surname:
* Year of birth:
* Email:
* Physical Address (optional*):
* Health status:
*If you are interested in receiving newsletters about our products and services that we think may be of interest to you, please include your physical address. If you decide later that you do not wish to receive these newsletters, you can unsubscribe by sending an email to [email protected] or send a letter with your request to the address listed at the bottom of this page.
Terms and Conditions
1.Jurisdiction. [...]
2.Applicable law. [...]
3.Limitation of liability. [...]
Consent
By completing this registration form, you attest that you are at least 16 years of age, and that you consent to the processing of your personal data by Vigotron for the purpose of using the M-Health app. Although you are entitled to opt out of any advertising or marketing, you agree that Vigotron may contact you or provide you with any required notices, agreements, or other information concerning the services by email or other electronic means. You also agree that the Company may send automated emails with alerts regarding any problems with the M-Health app that may affect your well being.
Emily sends the draft to Sam for review. Which of the following is Sam most likely to point out as the biggest problem with Emily's consent provision?
- A. Direct marketing requires explicit consent, whereas the registration form only provides for a right to object
- B. Processing health data requires explicit consent, but the form does not ask for explicit consent.
- C. The provision of the fitness app should be made conditional on the consent to the data processing for direct marketing.
- D. It is not legal to include fields requiring information regarding health status without consent.
Answer: A
NEW QUESTION 52
SCENARIO
Please use the following to answer the next question:
T-Craze, a German-headquartered specialty t-shirt company, was successfully selling to large German metropolitan cities. However, after a recent merger with another German-based company that was selling to a broader European market, T-Craze revamped its marketing efforts to sell to a wider audience. These efforts included a complete redesign of its logo to reflect the recent merger, and improvements to its website meant to capture more information about visitors through the use of cookies.
T-Craze also opened various office locations throughout Europe to help expand its business. While Germany Target, a renowned marketing firm based in the Philippines, to run its latest marketing campaign. After thorough research, Right Target determined that T-Craze is most successful with customers between the ages of 18 and 22. Thus, its first campaign targeted university students in several European capitals, which yielded nearly 40% new customers for T-Craze in one quarter. Right Target also ran subsequent campaigns for T- Craze, though with much less success.
The last two campaigns included a wider demographic group and resulted in countless unsubscribe requests, including a large number in Spain. In fact, the Spanish data protection authority received a complaint from Sofia, a mid-career investment banker. Sofia was upset after receiving a marketing communication even after unsubscribing from such communications from the Right Target on behalf of T-Craze.
What is the best option for the lead regulator when responding to the Spanish supervisory authority's notice that it plans to take action regarding Sofia's complaint?
- A. Reject, because GDPR does not allow other supervisory authorities to take action if there is a lead authority.
- B. Accept, because GDPR permits non-lead authorities to take action for such complaints.
- C. Reject, because Right Target's processing was conducted throughout Europe.
- D. Accept, because it did not receive any complaints.
Answer: A
NEW QUESTION 53
SCENARIO
Please use the following to answer the next question:
Joe is the new privacy manager for Who-R-U, a Canadian business that provides DNA analysis. The company is headquartered in Montreal, and all of its employees are located there. The company offers its services to Canadians only: Its website is in English and French, it accepts only Canadian currency, and it blocks internet traffic from outside of Canada (although this solution doesn't prevent all non-Canadian traffic). It also declines to process orders that request the DNA report to be sent outside of Canada, and returns orders that show a non-Canadian return address.
Bob, the President of Who-R-U, thinks there is a lot of interest for the product in the EU, and the company is exploring a number of plans to expand its customer base.
The first plan, collegially called We-Track-U, will use an app to collect information about its current Canadian customer base. The expansion will allow its Canadian customers to use the app while traveling abroad. He suggests that the company use this app to gather location information. If the plan shows promise, Bob proposes to use push notifications and text messages to encourage existing customers to pre-register for an EU version of the service. Bob calls this work plan, We-Text-U. Once the company has gathered enough pre- registrations, it will develop EU-specific content and services.
Another plan is called Customer for Life. The idea is to offer additional services through the company's app, like storage and sharing of DNA information with other applications and medical providers. The company's contract says that it can keep customer DNA indefinitely, and use it to offer new services and market them to customers. It also says that customers agree not to withdraw direct marketing consent. Paul, the marketing director, suggests that the company should fully exploit these provisions, and that it can work around customers' attempts to withdraw consent because the contract invalidates them.
The final plan is to develop a brand presence in the EU. The company has already begun this process. It is in the process of purchasing the naming rights for a building in Germany, which would come with a few offices that Who-R-U executives can use while traveling internationally. The office doesn't include any technology or infrastructure; rather, it's simply a room with a desk and some chairs.
On a recent trip concerning the naming-rights deal, Bob's laptop is stolen. The laptop held unencrypted DNA reports on 5,000 Who-R-U customers, all of whom are residents of Canada. The reports include customer name, birthdate, ethnicity, racial background, names of relatives, gender, and occasionally health information.
If Who-R-U decides to track locations using its app, what must it do to comply with the GDPR?
- A. Provide a transparent notice to users.
- B. Anonymize the data and add latency so it avoids disclosing real time locations.
- C. Get consent from the app users.
- D. Obtain a court order because location data is a special category of personal data.
Answer: C
NEW QUESTION 54
SCENARIO
Please use the following to answer the next question:
Building Block Inc. is a multinational company, headquartered in Chicago with offices throughout the United States, Asia, and Europe (including Germany, Italy, France and Portugal). Last year the company was the victim of a phishing attack that resulted in a significant data breach. The executive board, in coordination with the general manager, their Privacy Office and the Information Security team, resolved to adopt additional security measures. These included training awareness programs, a cybersecurity audit, and use of a new software tool called SecurityScan, which scans employees' computers to see if they have software that is no longer being supported by a vendor and therefore not getting security updates. However, this software also provides other features, including the monitoring of employees' computers.
Since these measures would potentially impact employees, Building Block's Privacy Office decided to issue a general notice to all employees indicating that the company will implement a series of initiatives to enhance information security and prevent future data breaches.
After the implementation of these measures, server performance decreased. The general manager instructed the Security team on how to use SecurityScan to monitor employees' computers activity and their location.
During these activities, the Information Security team discovered that one employee from Italy was daily connecting to a video library of movies, and another one from Germany worked remotely without authorization. The Security team reported these incidents to the Privacy Office and the general manager. In their report, the team concluded that the employee from Italy was the reason why the server performance decreased.
Due to the seriousness of these infringements, the company decided to apply disciplinary measures to both employees, since the security and privacy policy of the company prohibited employees from installing software on the company's computers, and from working remotely without authorization.
What would be the MOST APPROPRIATE way for Building Block to handle the situation with the employee from Italy?
- A. Since the employee was the cause of a serious risk for the server performance and their data, the company would be entitled to apply disciplinary measures to this employee, including fair dismissal.
- B. Since the GDPR does not apply to this situation, the company would be entitled to apply any disciplinary measure authorized under Italian labor law.
- C. Since this was a serious infringement, but the employee was not appropriately informed about the consequences the new security measures, the company would be entitled to apply some disciplinary measures, but not dismissal.
- D. Since the employee was not informed that the security measures would be used for other purposes such as monitoring, the company could face difficulties in applying any disciplinary measures to this employee.
Answer: C
NEW QUESTION 55
According to the GDPR, how is pseudonymous personal data defined?
- A. Data that can no longer be attributed to a specific data subject without the use of additional information kept separately.
- B. Data that has been rendered anonymous in such a manner that the data subject is no longer identifiable.
- C. Data that has been encrypted or is subject to other technical safeguards.
- D. Data that can no longer be attributed to a specific data subject, with no possibility of re-identifying the data.
Answer: A
NEW QUESTION 56
After leaving the EU under the terms of Brexit, the United Kingdom will seek an adequacy determination.
What is the reason for this?
- A. The UK is less trustworthy now that its not part of the Union.
- B. Adequacy determinations automatically lapse when a Member State leaves the EU.
- C. The UK is now a third country because it's no longer subject to the GDPR.
- D. The Insurance Commissioner determined that an adequacy determination is required by the Data Protection Act.
Answer: C
NEW QUESTION 57
SCENARIO
Please use the following to answer the next question:
Louis, a long-time customer of Bedrock Insurance, was involved in a minor car accident a few months ago.
Although no one was hurt, Louis has been plagued by texts and calls from a company called Accidentable offering to help him recover compensation for personal injury. Louis has heard about insurance companies selling customers' data to third parties, and he's convinced that Accidentable must have gotten his information from Bedrock Insurance.
Louis has also been receiving an increased amount of marketing information from Bedrock, trying to sell him their full range of their insurance policies.
Perturbed by this, Louis has started looking at price comparison sites on the internet and has been shocked to find that other insurers offer much cheaper rates than Bedrock, even though he has been a loyal customer for many years. When his Bedrock policy comes up for renewal, he decides to switch to Zantrum Insurance.
In order to activate his new insurance policy, Louis needs to supply Zantrum with information about his No Claims bonus, his vehicle and his driving history. After researching his rights under the GDPR, he writes to ask Bedrock to transfer his information directly to Zantrum. He also takes this opportunity to ask Bedrock to stop using his personal data for marketing purposes.
Bedrock supplies Louis with a PDF and XML (Extensible Markup Language) versions of his No Claims Certificate, but tells Louis it cannot transfer his data directly to Zantrum as this is not technically feasible.
Bedrock also explains that Louis's contract included a provision whereby Louis agreed that his data could be used for marketing purposes; according to Bedrock, it is too late for Louis to change his mind about this. It angers Louis when he recalls the wording of the contract, which was filled with legal jargon and very confusing.
In the meantime, Louis is still receiving unwanted calls from Accidentable Insurance. He writes to Accidentable to ask for the name of the organization that supplied his details to them. He warns Accidentable that he plans to complain to the data protection authority, because he thinks their company has been using his data unlawfully. His letter states that he does not want his data being used by them in any way.
Accidentable's response letter confirms Louis's suspicions. Accidentable is Bedrock Insurance's wholly owned subsidiary, and they received information about Louis's accident from Bedrock shortly after Louis submitted his accident claim. Accidentable assures Louis that there has been no breach of the GDPR, as Louis's contract included, a provision in which he agreed to share his information with Bedrock's affiliates for business purposes.
Louis is disgusted by the way in which he has been treated by Bedrock, and writes to them insisting that all his information be erased from their computer system.
Based on the GDPR's position on the use of personal data for direct marketing purposes, which of the following is true about Louis's rights as a data subject?
- A. Louis does not have the right to object to the use of his data because he previously consented to it.
- B. Louis has the right to object to the use of his data, unless his data is required by Bedrock for the purpose of exercising a legal claim.
- C. Louis does not have the right to object to the use of his data if Bedrock can demonstrate compelling legitimate grounds for the processing.
- D. Louis has the right to object at any time to the use of his data and Bedrock must honor his request to cease use.
Answer: D
NEW QUESTION 58
What is the MAIN reason GDPR Article 4(22) establishes the concept of the "concerned supervisory authority"?
- A. To encourage the consistency of local data processing activity.
- B. To ensure the GDPR covers controllers that do not have an establishment in the EU but have a representative in a member state.
- C. To ensure that the interests of individuals residing outside the lead authority's jurisdiction are represented.
- D. To give corporations a choice about who their supervisory authority will be.
Answer: A
NEW QUESTION 59
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