Certified Information Privacy Professional/Europe (CIPP/E)
Last Update May 18, 2024
Total Questions : 268
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Which institution has the power to adopt findings that confirm the adequacy of the data protection level in a non-EU country?
SCENARIO
Please use the following to answer the next question:
Jane starts her new role as a Data Protection Officer (DPO) at a Malta-based
company that allows anyone to buy and sell cryptocurrencies via its online platform.
The company stores and processes the personal data of its customers in a
dedicated data center located in Malta (EU).
People wishing to trade cryptocurrencies are required to open an online account on
the platform. They then must successfully pass a Know Your Customer (KYC) due
diligence procedure aimed at preventing money laundering and ensuring
compliance with applicable financial regulations.
The non-European customers are also required to waive all their GDPR rights by
reading a disclaimer written in bold and ticking a checkbox on a separate page in
order to get their account approved on the platform.
All customers must likewise accept the terms of service of the platform. The terms
of service also include a privacy policy section, saying, among other things, that if a
customer fails the KYC process, its KYC data will be automatically shared with the
national anti-money laundering agency.
The KYC procedure requires customers to answer many questions, including
whether they have any criminal convictions, whether they use recreational drugs or
have problems with alcohol, and whether they have a terminal illness. While
providing this data, customers see a conspicuous message saying that this data is
meant only to prevent fraud and account takeover, and will be never shared with
private third parties.
The company regularly conducts external security testing of its online systems by
independent cybersecurity companies from the EU. At the final stage of testing, the
company provides cybersecurity assessors with access to its central database to
review security permissions, roles and policies. Personal data in the database is
encrypted; however, cybersecurity assessors usually have access to the decryption
keys obtained while running initial security testing. The assessors must strictly
follow the guidelines imposed by the company during the entire testing and auditing
process.
All customer data, including trading activities and all internal communications with
technical support, are permanently stored in a secured AWS S3 Glacier cloud data
storage, located in Ireland, for backup and compliance purposes. The data is
securely transferred to the cloud and then is properly encrypted while at rest by
using AWS-native encryption mechanisms. These mechanisms give AWS the
necessary technical means to encrypt and decrypt the data when such is required
by the company. There is no data processing agreement between AWS and the
company.
Should Jane modify the required GDPR rights waiver for non-European residents?
As a Data Protection Officer for a small bank in the European Union, you receive a data subject access request from one of your customers. The customer provides you with his
name, and has used the email address registered in your system.
What would be the most appropriate way to confirm the identity of the customer?
An employee of company ABCD has just noticed a memory stick containing records of client data, including their names, addresses and full contact details has disappeared. The data on the stick is unencrypted and in clear text. It is uncertain what has happened to the stick at this stage, but it likely was lost during the travel of an employee. What should the company do?
If a French controller has a car-sharing app available only in Morocco, Algeria and Tunisia, but the data processing activities are carried out by the appointed processor in Spain, the GDPR will apply to the processing of the personal data so long as?
According to the GDPR, when should the processing of photographs be considered processing of special categories of personal data?
In the Planet 49 case, what was the man judgement of the Coon of Justice of the European Union (CJEU) regarding the issue of cookies?
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?
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?
The transparency principle is most directly related to which of the following rights?
In which case would a controller who has undertaken a DPIA most likely need to consult with a supervisory authority?
How is the retention of communications traffic data for law enforcement purposes addressed by European data protection law?
SCENARIO
Please use the following to answer the next question:
Liem, an online retailer known for its environmentally friendly shoes, has recently expanded its presence in Europe. Anxious to achieve market dominance, Liem teamed up with another eco friendly company, EcoMick, which sells accessories like belts and bags. Together the companies drew up a series of marketing campaigns designed to highlight the environmental and economic benefits of their products. After months of planning, Liem and EcoMick entered into a data sharing agreement to use the same marketing database, MarketIQ, to send the campaigns to their respective contacts.
Liem and EcoMick also entered into a data processing agreement with MarketIQ, the terms of which included processing personal data only upon Liem and EcoMick’s instructions, and making available to them all information necessary to demonstrate compliance with GDPR obligations.
Liem and EcoMick then procured the services of a company called JaphSoft, a marketing optimization firm that uses machine learning to help companies run successful campaigns. Clients provide JaphSoft with the personal data of individuals they would like to be targeted in each campaign. To ensure protection of its
clients’ data, JaphSoft implements the technical and organizational measures it deems appropriate. JaphSoft works to continually improve its machine learning models by analyzing the data it receives from its clients to determine the most successful components of a successful campaign. JaphSoft then uses such models in providing services to its client-base. Since the models improve only over a period of time as more information is collected, JaphSoft does not have a deletion process for the data it receives from clients. However, to ensure compliance with data privacy rules, JaphSoft pseudonymizes the personal data by removing identifying
information from the contact information. JaphSoft’s engineers, however, maintain all contact information in the same database as the identifying information.
Under its agreement with Liem and EcoMick, JaphSoft received access to MarketIQ, which included contact information as well as prior purchase history for such contacts, to create campaigns that would result in the most views of the two companies’ websites. A prior Liem customer, Ms. Iman, received a marketing campaign from JaphSoft regarding Liem’s as well as EcoMick’s latest products. While Ms. Iman recalls checking a box to receive information in the future regarding Liem’s products, she has never shopped EcoMick, nor provided her personal data to that company.
JaphSoft’s use of pseudonymization is NOT in compliance with the CDPR because?
SCENARIO
Please use the following to answer the next question:
Anna and Frank both work at Granchester University. Anna is a lawyer responsible for data protection, while Frank is a lecturer in the engineering department. The University maintains a number of types of records:
In order to improve his teaching, Frank wants to investigate how his engineering students perform in relational to Department for Education expectations. He has attended one of Anna’s data protection training courses and knows that he should use no more personal data than necessary to accomplish his goal. He creates a
program that will only export some student data: previous schools attended, grades originally obtained, grades currently obtained and first time university attended. He wants to keep the records at the individual student level. Mindful of Anna’s training, Frank runs the student numbers through an algorithm to transform them into different reference numbers. He uses the same algorithm on each occasion so that he can update each record over time.
One of Anna’s tasks is to complete the record of processing activities, as required by the GDPR. After receiving her email reminder, as required by the GDPR. After receiving her email reminder, Frank informs
Anna about his performance database.
Ann explains to Frank that, as well as minimizing personal data, the University has to check that this new use of existing data is permissible. She also suspects that, under the GDPR, a risk analysis may have to be carried out before the data processing can take place. Anna arranges to discuss this further with Frank after she has done some additional research.
Frank wants to be able to work on his analysis in his spare time, so he transfers it to his home laptop (which is not encrypted). Unfortunately, when Frank takes the laptop into the University he loses it on the train. Frank has to see Anna that day to discuss compatible processing. He knows that he needs to report security incidents, so he decides to tell Anna about his lost laptop at the same time.
Which of the University’s records does Anna NOT have to include in her record of processing activities?
SCENARIO
Please use the following to answer the next question:
You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company’s revenue is due to international sales.
The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children’s Questions: on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.
When a child asks the toy a QUESTION, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure’s integrated
speakers, making it appear as though that the toy is actually responding to the child’s QUESTION. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.
In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures’ abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character’s abilities remain intact.
To ensure GDPR compliance, what should be the company’s position on the issue of consent?
When does the European Data Protection Board (EDPB) recommend reevaluating whether a transfer tool is effectively providing a level of personal data protection that is in compliance with the European Union (EU) level?
SCENARIO
Please use the following to answer the next question:
Liem, an online retailer known for its environmentally friendly shoes, has recently expanded its presence in Europe. Anxious to achieve market dominance, Liem teamed up with another eco friendly company, EcoMick, which sells accessories like belts and bags. Together the companies drew up a series of marketing campaigns designed to highlight the environmental and economic benefits of their products. After months of planning, Liem and EcoMick entered into a data sharing agreement to use the same marketing database, MarketIQ, to send the campaigns to their respective contacts.
Liem and EcoMick also entered into a data processing agreement with MarketIQ, the terms of which included processing personal data only upon Liem and EcoMick’s instructions, and making available to them all information necessary to demonstrate compliance with GDPR obligations.
Liem and EcoMick then procured the services of a company called JaphSoft, a marketing optimization firm that uses machine learning to help companies run successful campaigns. Clients provide JaphSoft with the personal data of individuals they would like to be targeted in each campaign. To ensure protection of its
clients’ data, JaphSoft implements the technical and organizational measures it deems appropriate. JaphSoft works to continually improve its machine learning models by analyzing the data it receives from its clients to determine the most successful components of a successful campaign. JaphSoft then uses such models in providing services to its client-base. Since the models improve only over a period of time as more information is collected, JaphSoft does not have a deletion process for the data it receives from clients. However, to ensure compliance with data privacy rules, JaphSoft pseudonymizes the personal data by removing identifying
information from the contact information. JaphSoft’s engineers, however, maintain all contact information in the same database as the identifying information.
Under its agreement with Liem and EcoMick, JaphSoft received access to MarketIQ, which included contact information as well as prior purchase history for such contacts, to create campaigns that would result in the most views of the two companies’ websites. A prior Liem customer, Ms. Iman, received a marketing campaign from JaphSoft regarding Liem’s as well as EcoMick’s latest products. While Ms. Iman recalls checking a box to receive information in the future regarding Liem’s products, she has never shopped EcoMick, nor provided her personal data to that company.
Under the GDPR, Liem and EcoMick’s contract with MarketIQ must include all of the following provisions EXCEPT?
Under what circumstances would the GDPR apply to personal data that exists in physical form, such as information contained in notebooks or hard copy files?
Jerry the Chief Marketing Officer for a sports apparel and trophy company, sells products to schools and athletic clubs globally Recently the company has decided to invest in a new line of customized sports equipment Jerry plans to email his current customer base to offer them a discount on their first purchase of such equipment.
Jerry tells Kate, the Director of Privacy, about his plan. What is the best guidance Kate can provide to Jerry?
Sanctions for non-compliance with the EU Artificial Intelligence Act (Al Act) could result in a maximum fine of?
The GDPR requires controllers to supply data subjects with detailed information about the processing of their data. Where a controller obtains data directly from data subjects, which of the following items of information does NOT legally have to be supplied?
SCENARIO
Please use the following to answer the next question:
Joe started the Gummy Bear Company in 2000 from his home in Vermont, USA. Today, it is a multi-billion-dollar candy company operating in every continent. All of the company’s IT servers are located in Vermont. This year Joe hires his son Ben to join the company and head up Project Big, which is a major marketing strategy to triple gross revenue in just 5 years. Ben graduated with a PhD in computer software from a top university. Ben decided to join his father’s company, but is also secretly working on launching a new global online dating website company called Ben Knows Best.
Ben is aware that the Gummy Bear Company has millions of customers and believes that many of them might also be interested in finding their perfect match. For Project Big, Ben redesigns the company’s online web portal and requires customers in the European Union and elsewhere to provide additional personal information in order to remain a customer. Project Ben begins collecting data about customers’ philosophical beliefs, political opinions and marital status.
If a customer identifies as single, Ben then copies all of that customer’s personal data onto a separate database for Ben Knows Best. Ben believes that he is not doing anything wrong, because he explicitly asks each customer to give their consent by requiring them to check a box before accepting their information. As Project Big is an important project, the company also hires a first year college student named Sam, who is studying computer science to help Ben out.
Ben calls out and Sam comes across the Ben Knows Best database. Sam is planning on going to Ireland over Spring Beak with 10 of his friends, so he copies all of the customer information of people that reside in Ireland so that he and his friends can contact people when they are in Ireland.
Joe also hires his best friend’s daughter, Alice, who just graduated from law school in the U.S., to be the company’s new General Counsel. Alice has heard about the GDPR, so she does some research on it. Alice approaches Joe and informs him that she has drafted up Binding Corporate Rules for everyone in the company to follow, as it is important for the company to have in place a legal mechanism to transfer data internally from the company’s operations in the European Union to the U.S.
Joe believes that Alice is doing a great job, and informs her that she will also be in-charge of handling a major lawsuit that has been brought against the company in federal court in the U.S. To prepare for the lawsuit, Alice instructs the company’s IT department to make copies of the computer hard drives from the entire global sales team, including the European Union, and send everything to her so that she can review everyone’s information. Alice believes that Joe will be happy that she did the first level review, as it will save the company a lot of money that would otherwise be paid to its outside law firm.
In preparing the company for its impending lawsuit, Alice’s instruction to the company’s IT Department violated Article 5 of the GDPR because the company failed to first do what?
As a result of the European Court of Justice’s ruling in the case of Google v. Spain, search engines outside the EEA are also likely to be subject to the Regulation’s right to be forgotten. This holds true if the activities of an EU subsidiary and its U.S. parent are what?
Which of the following describes a mandatory requirement for a group of undertakings that wants to appoint a single data protection officer?
Articles 13 and 14 of the GDPR provide details on the obligation of data controllers to inform data subjects when collecting personal data. However, both articles specify an exemption for situations in which the data subject already has the information.
Which other situation would also exempt the data controller from this obligation under Article 14?
Which kind of privacy notice, originally advocated by the Article 29 Working Party, is commonly recommended tor Al-based technologies because of the way it provides processing information at specific points of data collection?
To provide evidence of GDPR compliance, a company performs an internal audit. As a result, it finds a data base, password-protected, listing all the social network followers of the client.
Regarding the domain of the controller-processor relationships, how is this situation considered?
Why is advisable to avoid consent as a legal basis for an employer to process employee data?
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.
After Leon has informed his manager, what is Techiva’s legal responsibility as a processor?
Since blockchain transactions are classified as pseudonymous, are they considered to be within the material scope of the GDPR, or outside of it?
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?
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.
In addition to notifying employees about the purpose of the monitoring, the potential uses of their data and their privacy rights, what information should Building Block have provided them before implementing the security measures?
SCENARIO
Please use the following to answer the next question:
Jack worked as a Pharmacovigiliance Operations Specialist in the Irish office of a multinational pharmaceutical company on a clinical trial related to COVID-19. As part of his onboarding process Jack received privacy training He was explicitly informed that while he would need to process confidential patient data in the course of his work, he may under no circumstances use this data for anything other than the performance of work-related (asks This was also specified in the privacy policy, which Jack signed upon conclusion of the training.
After several months of employment, Jack got into an argument with a patient over the phone. Out of anger he later posted the patient's name and hearth information, along with disparaging comments, on a social media website. When this was discovered by his Pharmacovigilance supervisors. Jack was immediately dismissed
Jack's lawyer sent a letter to the company stating that dismissal was a disproportionate sanction, and that if Jack was not reinstated within 14 days his firm would have no alternative but to commence legal proceedings against the company. This letter was accompanied by a data access request from Jack requesting a copy of "all personal data, including internal emails that were sent/received by Jack or where Jack is directly or indirectly identifiable from the contents * In relation to the emails Jack listed six members of the management team whose inboxes he required access.
The company conducted an initial search of its IT systems, which returned a large amount of information They then contacted Jack, requesting that he be more specific regarding what information he required, so that they could carry out a targeted search Jack responded by stating that he would not narrow the scope of the information requester.
What would be the most appropriate response to Jacks data subject access request?
SCENARIO
Please use the following to answer the next question:
WonderkKids provides an online booking service for childcare. Wonderkids is based in France, but hosts its website through a company in Switzerland. As part of their service, WonderKids will pass all personal data provided to them to the childcare provider booked through their system. The type of personal data collected on the website includes the name of the person booking the childcare, address and contact details, as well as information about the children to be cared for including name, age, gender and health information. The privacy statement on Wonderkids’ website states the following:
“WonderkKids provides the information you disclose to us through this website to your childcare provider for scheduling and health and safety reasons. We may also use your and your child’s personal information for our own legitimate business purposes and we employ a third-party website hosting company located in Switzerland to store the data. Any data stored on equipment located in Switzerland meets the European Commission provisions for guaranteeing adequate safeguards for you and your child’s personal information. We will only share you and your child’s personal information with businesses that we see as adding real value to you. By providing us with any personal data, you consent to its transfer to affiliated businesses and to send you promotional offers.”
“We may retain you and your child’s personal information for no more than 28 days, at which point the data will be depersonalized, unless your personal information is being used for a legitimate business purpose beyond 28 days where it may be retained for up to 2 years.”
“We are processing you and your child’s personal information with your consent. If you choose not to provide certain information to us, you may not be able to use our services. You have the right to: request access to
you and your child’s personal information; rectify or erase you or your child’s personal information; the right to correction or erasure of you and/or your child’s personal information; object to any processing of you and your child’s personal information. You also have the right to complain to the supervisory authority about our data processing activities.”
What additional information must Wonderkids provide in their Privacy Statement?
SCENARIO
Please use the following to answer the next question:
Dynaroux Fashion (‘Dynaroux’) is a successful international online clothing retailer that employs approximately 650 people at its headquarters based in Dublin, Ireland. Ronan is their recently appointed data protection officer, who oversees the company’s compliance with the General Data Protection Regulation (GDPR) and other privacy legislation.
The company offers both male and female clothing lines across all age demographics, including children. In doing so, the company processes large amounts of information about such customers, including preferences and sensitive financial information such as credit card and bank account numbers.
In an aggressive bid to build revenue growth, Jonas, the CEO, tells Ronan that the company is launching a new mobile app and loyalty scheme that puts significant emphasis on profiling the company’s customers by analyzing their purchases. Ronan tells the CEO that: (a) the potential risks of such activities means that
Dynaroux needs to carry out a data protection impact assessment to assess this new venture and its privacy implications; and (b) where the results of this assessment indicate a high risk in the absence of appropriate protection measures, Dynaroux may have to undertake a prior consultation with the Irish Data Protection Commissioner before implementing the app and loyalty scheme.
Jonas tells Ronan that he is not happy about the prospect of having to directly engage with a supervisory authority and having to disclose details of Dynaroux’s business plan and associated processing activities.
Which of the following facts about Dynaroux would trigger a data protection impact assessment under the GDPR?
In which scenario is a Controller most likely required to undertake a Data Protection Impact Assessment?
Which marketing-related activity is least likely to be covered by the provisions of Privacy and Electronic Communications Regulations (Directive 2002/58/EC)?
Pursuant to Article 17 and EDPB Guidelines S'2019 on RTBF criteria in search engines cases, all of the following would be valid grounds for data subject delisting requests EXCEPT?
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?
Under Article 30 of the GDPR, controllers are required to keep records of all of the following EXCEPT?
You are the new Data Protection Officer for your company and have to determine whether the company has implemented appropriate technical and organizational measures as required by Article 32 of the GDPR. Which of the following would be the most important to consider when trying to determine this?
Which of the following is NOT exempt from the material scope of the GDPR. insofar as the processing of personal data is concerned?
In the wake of the Schrems II ruling, which of the following actions has been recommended by the EDPB for companies transferring personal data to third countries?
The GDPR forbids the practice of “forum shopping”, which occurs when companies do what?
SCENARIO
Please use the following to answer the next question:
ProStorage is a multinational cloud storage provider headquartered in the Netherlands. Its CEO. Ruth Brown, has developed a two-pronged strategy for growth: 1) expand ProStorage s global customer base and 2) increase ProStorage's sales force by efficiently onboarding effective teams. Enacting this strategy has recently been complicated by Ruth's health condition, which has limited her working hours, as well as her ability to travel to meet potential customers. ProStorage's Human Resources department and Ruth's Chief of Staff now work together to manage her schedule and ensure that she is able to make all her medical appointments The latter has become especially crucial after Ruth's last trip to India, where she suffered a medical emergency and was hospitalized m New Delhi Unable to reach Ruths family, the hospital reached out to ProStorage and was able to connect with her Chief of Staff, who in coordination with Mary, the head of HR. provided information to the doctors based on accommodate on requests Ruth made when she started a: ProStorage
In support of Ruth's strategic goals of hiring more sales representatives, the Human
Resources team is focused on improving its processes to ensure that new
employees are sourced, interviewed, hired, and onboarded efficiently. To help with
this, Mary identified two vendors, HRYourWay, a German based company, and
InstaHR, an Australian based company. She decided to have both vendors go
through ProStorage's vendor risk review process so she can work with Ruth to
make the final decision. As part of the review process, Jackie, who is responsible
for maintaining ProStorage's privacy program (including maintaining controller
BCRs and conducting vendor risk assessments), reviewed both vendors but
completed a transfer impact assessment only for InstaHR. After her review of both
vendors, she determined that InstaHR satisfied more of the requirements as it
boasted a more established privacy program and provided third-party attestations,
whereas HRYourWay was a small vendor with minimal data protection operations.
Thus, she recommended InstaHR.
ProStorage's marketing team also worked to meet the strategic goals of the
company by focusing on industries where it needed to grow its market share. To
help with this, the team selected as a partner UpFinance, a US based company
with deep connections to financial industry customers. During ProStorage's
diligence process, Jackie from the privacy team noted in the transfer impact
assessment that UpFinance implements several data protection measures
including end-to-end encryption, with encryption keys held by the customer.
Notably, UpFinance has not received any government requests in its 7 years of
business. Still, Jackie recommended that the contract require UpFinance to notify
ProStorage if it receives a government request for personal data UpFinance
processes on its behalf prior to disclosing such data.
What transfer mechanism did ProStorage most likely rely on to transfer Ruth's
medical information to the hospital?
Article 58 of the GDPR describes the power of supervisory authorities. Which of the following is NOT among those granted?
SCENARIO
Please use the following to answer the next question:
Financially, it has been a very good year at ARRA Hotels: Their 21 hotels, located in
Greece (5), Italy (15) and Spain (1), have registered their most profitable results
ever. To celebrate this achievement, ARRA Hotels' Human Resources office, based
in ARRA's main Italian establishment, has organized a team event for its 420
employees and their families at its hotel in Spain.
Upon arrival at the hotel, each employee and family member is given an electronic
wristband at the reception desk. The wristband serves a number of functions:
. Allows access to the "party zone" of the hotel, and emits a buzz if the user
approaches any unauthorized areas
. Allows up to three free drinks for each person of legal age, and emits a
buzz once this limit has been reached
. Grants a unique ID number for participating in the games and contests that
have been planned.
Along with the wristband, each guest receives a QR code that leads to the online
privacy notice describing the use of the wristband. The page also contains an
unchecked consent checkbox. In the case of employee family members under the
age of 16, consent must be given by a parent.
Among the various activities planned for the event, ARRA Hotels' HR office has
autonomously set up a photocall area, separate from the main event venue, where
employees can come and have their pictures taken in traditional carnival costume.
The photos will be posted on ARRA Hotels' main website for general marketing
purposes.
On the night of the event, an employee from one of ARRA's Greek hotels is
displeased with the results of the photos in which he appears. He intends to file a
complaint with the relevant supervisory authority in regard to the following:
. The lack of any privacy notice in the separate photocall area
The unlawful cross-border processing of his personal data
. The unacceptable aesthetic outcome of his photos
Assuming that there is a cross-border processing of personal data, which of the
following criteria would NOT be useful to the lead supervisory authority responsible
for the Greek employee's complaint when trying to determine the location of the
controller's main establishment?
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:
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?
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.
Under the cooperation mechanism, what should the lead authority (the CNIL) do after it has formed its view on the matter?
When collecting personal data in a European Union (EU) member state, what must a company do if it collects personal data from a source other than the data subjects themselves?
Which of the following is one of the supervisory authority’s investigative powers?
SCENARIO
Please use the following to answer the next question:
Sandy recently joined Market4U, an advertising technology company founded in 2016, as their VP of Privacy and Data Governance. Through her first initiative in conducting a data inventory, Sandy learned that Market4U maintains a list of 19 million global contacts that were collected throughout the course of Market4U’s existence. Knowing the risk of having such a large amount of data, Sandy wanted to purge all contacts that were entered into Market4U’s systems prior to May 2018, unless such contacts had a more recent interaction with Market4U content. However, Dan, the VP of Sales, informed Sandy that all of the contacts provide useful information regarding successful marketing campaigns and trends in industry verticals for Market4U’s clients.
Dan also informed Sandy that he had wanted to focus on gaining more customers within the sports and entertainment industry. To assist with this behavior, Market4U’s marketing team decided to add several new fields to Market4U’s website forms, including forms for downloading white papers, creating accounts to participate in Market4U’s forum, and attending events. Such fields include birth date and salary.
What is the best way that Sandy can gain the insights that Dan seeks while still minimizing risks for Market4U?
Which of the following does NOT have to be included in the records most processors must maintain in relation to their data processing activities?
According to the European Data Protection Board, data subjects should be aware of any video surveillance in operation. How should a retail shop operator ensure that data subjects receive at information required for such a purpose under EU data protection law?
Which of the following was the first legally binding international instrument in the area of data protection?
It a company receives an anonymous email demanding ransom for the stolen personal data of its clients, what must the company do next, per GDPR requirements'3
A key component of the OECD Guidelines is the “Individual Participation Principle”. What parts of the General Data Protection Regulation (GDPR) provide the closest equivalent to that principle?
SCENARIO
Please use the following to answer the next question:
Zandelay Fashion (‘Zandelay’) is a successful international online clothing retailer that employs approximately 650 people at its headquarters based in Dublin, Ireland. Martin is their recently appointed data protection officer, who oversees the company’s compliance with the General Data Protection Regulation (GDPR) and other privacy legislation.
The company offers both male and female clothing lines across all age demographics, including children. In doing so, the company processes large amounts of information about such customers, including preferences and sensitive financial information such as credit card and bank account numbers.
In an aggressive bid to build revenue growth, Jerry, the CEO, tells Martin that the company is launching a new mobile app and loyalty scheme that puts significant emphasis on profiling the company’s customers by analyzing their purchases. Martin tells the CEO that: (a) the potential risks of such activities means that Zandelay needs to carry out a data protection impact assessment to assess this new venture and its privacy implications; and (b) where the results of this assessment indicate a high risk in the absence of appropriate protection measures. Zandelay may have to undertake a prior consultation with the Irish Data Protection Commissioner before implementing the app and loyalty scheme.
Jerry tells Martin that he is not happy about the prospect of having to directly engage with a supervisory authority and having to disclose details of Zandelay’s business plan and associated processing activities.
What must Zandelay provide to the supervisory authority during the prior consultation?
Which GDPR requirement will present the most significant challenges for organizations with Bring Your Own Device (BYOD) programs?
To receive a preliminary interpretation on provisions of the GDPR, a national court will refer its case to which of the following?
According to the GDPR. Article 4(14). biometric data is defined as:
"Personal data resulting from specific technical processing relating to the______charactenstics of a natural person"
Which term could NOT be placed in the above definition?
SCENARIO
Please use the following to answer the next question:
BHealthy, a company based in Italy, is ready to launch a new line of natural products, with a focus on sunscreen. The last step prior to product launch is for BHealthy to conduct research to decide how extensively to market its new line of sunscreens across Europe. To do so, BHealthy teamed up with Natural Insight, a company specializing in determining pricing for natural products. BHealthy decided to share its existing customer information – name, location, and prior purchase history – with Natural Insight. Natural Insight intends to use this information to train its algorithm to help determine the price point at which BHealthy can sell its new sunscreens.
Prior to sharing its customer list, BHealthy conducted a review of Natural Insight’s security practices and concluded that the company has sufficient security measures to protect the contact information. Additionally, BHealthy’s data processing contractual terms with Natural Insight require continued implementation of technical and organization measures. Also indicated in the contract are restrictions on use of the data provided by BHealthy for any purpose beyond provision of the services, which include use of the data for continued improvement of Natural Insight’s machine learning algorithms.
Under the GDPR, what are Natural Insight’s security obligations with respect to the customer information it received from BHealthy?
SCENARIO
Please use the following to answer the next question:
Financially, it has been a very good year at ARRA Hotels: Their 21 hotels, located in
Greece (5), Italy (15) and Spain (1), have registered their most profitable results
ever. To celebrate this achievement, ARRA Hotels' Human Resources office, based
in ARRA's main Italian establishment, has organized a team event for its 420
employees and their families at its hotel in Spain.
Upon arrival at the hotel, each employee and family member is given an electronic
wristband at the reception desk. The wristband serves a number of functions:
. Allows access to the "party zone" of the hotel, and emits a buzz if the user
approaches any unauthorized areas
. Allows up to three free drinks for each person of legal age, and emits a
buzz once this limit has been reached
. Grants a unique ID number for participating in the games and contests that
have been planned.
Along with the wristband, each guest receives a QR code that leads to the online
privacy notice describing the use of the wristband. The page also contains an
unchecked consent checkbox. In the case of employee family members under the
age of 16, consent must be given by a parent.
Among the various activities planned for the event, ARRA Hotels' HR office has
autonomously set up a photocall area, separate from the main event venue, where
employees can come and have their pictures taken in traditional carnival costume.
The photos will be posted on ARRA Hotels' main website for general marketing
purposes.
On the night of the event, an employee from one of ARRA's Greek hotels is
displeased with the results of the photos in which he appears. He intends to file a
complaint with the relevant supervisory authority in regard to the following:
. The lack of any privacy notice in the separate photocall area
The unlawful cross-border processing of his personal data
. The unacceptable aesthetic outcome of his photos
Why would consent NOT be considered an adequate legal basis for accessing the
party zone?
Which of the following was the first to implement national law for data protection in 1973?
Under what circumstances might the “soft opt-in” rule apply in relation to direct marketing?
Which sentence best describes proper compliance for an international organization using Binding Corporate Rules (BCRs) as a controller or processor?
When would a data subject NOT be able to exercise the right to portability?
Which of the following would MOST likely trigger the extraterritorial effect of the GDPR, as specified by Article 3?
Which mechanism, new to the GDPR, now allows for the possibility of personal data transfers to third countries under Article 42?
According to the European Data Protection Board, which of the following concepts or practices does NOT follow from the principles relating to the processing of personal data under EU data protection law?
In 2016’s Guidance, the United Kingdom’s Information Commissioner’s Office (ICO) reaffirmed the importance of using a “layered notice” to provide data subjects with what?
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.)
*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 unsubscribe@vigotron.com 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.
If a user of the M-Health app were to decide to withdraw his consent, Vigotron would first be required to do what?
Which of the following is NOT recognized as a common characteristic of cloud computing services?
SCENARIO
Please use the following to answer the next question:
Liem, an online retailer known for its environmentally friendly shoes, has recently expanded its presence in Europe. Anxious to achieve market dominance, Liem teamed up with another eco friendly company, EcoMick, which sells accessories like belts and bags. Together the companies drew up a series of marketing campaigns designed to highlight the environmental and economic benefits of their products. After months of planning, Liem and EcoMick entered into a data sharing agreement to use the same marketing database, MarketIQ, to send the campaigns to their respective contacts.
Liem and EcoMick also entered into a data processing agreement with MarketIQ, the terms of which included processing personal data only upon Liem and EcoMick’s instructions, and making available to them all information necessary to demonstrate compliance with GDPR obligations.
Liem and EcoMick then procured the services of a company called JaphSoft, a marketing optimization firm that uses machine learning to help companies run successful campaigns. Clients provide JaphSoft with the personal data of individuals they would like to be targeted in each campaign. To ensure protection of its
clients’ data, JaphSoft implements the technical and organizational measures it deems appropriate. JaphSoft works to continually improve its machine learning models by analyzing the data it receives from its clients to determine the most successful components of a successful campaign. JaphSoft then uses such models in providing services to its client-base. Since the models improve only over a period of time as more information is collected, JaphSoft does not have a deletion process for the data it receives from clients. However, to ensure compliance with data privacy rules, JaphSoft pseudonymizes the personal data by removing identifying
information from the contact information. JaphSoft’s engineers, however, maintain all contact information in the same database as the identifying information.
Under its agreement with Liem and EcoMick, JaphSoft received access to MarketIQ, which included contact information as well as prior purchase history for such contacts, to create campaigns that would result in the most views of the two companies’ websites. A prior Liem customer, Ms. Iman, received a marketing campaign from JaphSoft regarding Liem’s as well as EcoMick’s latest products. While Ms. Iman recalls checking a box to receive information in the future regarding Liem’s products, she has never shopped EcoMick, nor provided her personal data to that company.
Which of the following BEST describes the relationship between Liem, EcoMick and JaphSoft?