[2022] Use Valid CIPP-E Exam - Actual Exam Question & Answer
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NEW QUESTION 50
An online company's privacy practices vary due to the fact that it offers a wide variety of services. How could it best address the concern that explaining them all would make the policies incomprehensible?
- A. Place a banner on its website stipulating that visitors agree to its privacy policy and terms of use by visiting the site.
- B. Use a layered privacy notice on its website and in its email communications.
- C. Identify uses of data in a privacy notice mailed to the data subject.
- D. Provide only general information about its processing activities and offer a toll-free number for more information.
Answer: C
NEW QUESTION 51
Under which of the following conditions does the General Data Protection Regulation NOT apply to the processing of personal data?
- A. When the personal data is processed by an individual only for their household activities
- B. When the personal data is processed only in non-electronic form
- C. When the personal data is collected and then pseudonymised by the controller
- D. When the personal data is held by the controller but not processed for further purposes
Answer: C
NEW QUESTION 52
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. Prevent the article from being listed in search results no matter what search terms are entered into the search engine.
- D. Notify the newspaper that its article it is delisting the article.
Answer: D
NEW QUESTION 53
What is true of both the General Data Protection Regulation (GDPR) and the Council of Europe Convention
108?
- A. Both only apply to European Union countries
- B. Both require notification of processing activities to a supervisory authority
- C. Both govern the manual processing of personal data
- D. Both govern international transfers of personal data
Answer: B
NEW QUESTION 54
What is the most frequently used mechanism for legitimizing cross-border data transfer?
- A. Approved Code of Conduct.
- B. Standard Contractual Clauses.
- C. Derogations.
- D. Binding Corporate Rules.
Answer: B
NEW QUESTION 55
An unforeseen power outage results in company Z's lack of access to customer data for six hours. According to article 32 of the GDPR, this is considered a breach. Based on the WP 29's February, 2018 guidance, company Z should do which of the following?
- A. Document the loss of availability to demonstrate accountability
- B. Notify affected individuals that their data was unavailable for a period of time.
- C. Notify the supervisory authority about the loss of availability
- D. Conduct a thorough audit of all security systems
Answer: C
Explanation:
Explanation/Reference: https://www.google.com/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwihmsidxtTqAhXvQUEAHXRaAdYQFjABegQIARAB& url=https%3A%2F%2Fec.europa.eu%2Fnewsroom%2Farticle29%2Fdocument.cfm%3Fdoc_id%
3D49827&usg=AOvVaw2uhYsKyRzJ6lwhQyiMURJF (5)
NEW QUESTION 56
What term BEST describes the European model for data protection?
- A. Comprehensive
- B. Market-based
- C. Self-regulatory
- D. Sectoral
Answer: D
Explanation:
Explanation/Reference: https://ec.europa.eu/info/sites/info/files/communication-european-strategy-data-19feb2020_en.pdf
NEW QUESTION 57
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 dat a. 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. It is not legal to include fields requiring information regarding health status without consent.
- B. Direct marketing requires explicit consent, whereas the registration form only provides for a right to object
- C. Processing health data requires explicit consent, but the form does not ask for explicit consent.
- D. The provision of the fitness app should be made conditional on the consent to the data processing for direct marketing.
Answer: B
NEW QUESTION 58
In which scenario is a Controller most likely required to undertake a Data Protection Impact Assessment?
- A. When the controller is required to have a Data Protection Officer.
- B. When the controller is collecting email addresses from individuals via an online registration form for marketing purposes.
- C. When personal data is being transferred outside of the EEA.
- D. When personal data is being collected and combined with other personal data to profile the creditworthiness of individuals.
Answer: A
Explanation:
Reference:
%20the%20General,and%20freedoms%20of%20natural%20persons%27.
NEW QUESTION 59
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?
- A. Records showing that customers have explicitly consented to the intended profiling activities.
- B. An evaluation of the complexity of the intended processing.
- C. Certificates that prove Martin's professional qualities and expert knowledge of data protection law.
- D. An explanation of the purposes and means of the intended processing.
Answer: D
NEW QUESTION 60
According to the E-Commerce Directive 2000/31/EC, where is the place of "establishment" for a company providing services via an Internet website confirmed by the GDPR?
- A. Where the website is accessed
- B. Where the decisions about processing are made
- C. Where the technology supporting the website is located
- D. Where the customer's Internet service provider is located
Answer: D
Explanation:
Explanation/Reference: https://www.ohiobar.org/member-tools-benefits/publications/Ohio-Lawyer/the-european-general- data-protection-regulation-gdpr/
NEW QUESTION 61
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?
- A. Supervised by the same Data Protection Officer.
- B. Bound by a standard contractual clause.
- C. Consistent with Privacy Shield requirements
- D. Inextricably linked in their businesses.
Answer: D
NEW QUESTION 62
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.
Ben's collection of additional data from customers created several potential issues for the company, which would most likely require what?
- A. A comprehensive data inventory.
- B. A data protection impact assessment.
- C. New corporate governance and code of conduct.
- D. Hiring a data protection officer.
Answer: C
NEW QUESTION 63
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:
Student records, including names, student numbers, home addresses, pre-university information, university attendance and performance records, details of special educational needs and financial information.
Staff records, including autobiographical materials (such as curricula, professional contact files, student evaluations and other relevant teaching files).
Alumni records, including birthplaces, years of birth, dates of matriculation and conferrals of degrees. These records are available to former students after registering through Granchester's Alumni portal. Department for Education records, showing how certain demographic groups (such as first-generation students) could be expected, on average, to progress. These records do not contain names or identification numbers.
Under their security policy, the University encrypts all of its personal data records in transit and at rest.
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?
- A. Department for Education records
- B. Frank's performance database
- C. Staff and alumni records
- D. Student records
Answer: B
NEW QUESTION 64
In which of the following cases would an organization MOST LIKELY be required to follow both ePrivacy and data protection rules?
- A. When paying a search engine company to give prominence to certain products and services within specific search results.
- B. When calling a potential customer to notify her of an upcoming product sale.
- C. When creating an untargeted pop-up ad on a website.
- D. When emailing a customer to announce that his recent order should arrive earlier than expected.
Answer: C
NEW QUESTION 65
To which of the following parties does the territorial scope of the GDPR NOT apply?
- A. All member countries party to the Treaty of Lisbon.
- B. All member countries of the European Economic Area.
- C. All member countries party to the Paris Agreement.
- D. All member countries of the European Union.
Answer: B
NEW QUESTION 66
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.
In light of the requirements of Article 32 of the GDPR (related to the Security of Processing), which practice should the company institute?
- A. Insert contractual clauses into the contract between the toy manufacturer and the cloud service provider, since South Africa is outside the European Union.
- B. Encrypt the data in transit over the wireless Bluetooth connection.
- C. Include dual-factor authentication before each use by a child in order to ensure a minimum amount of security.
- D. Include three-factor authentication before each use by a child in order to ensure the best level of security possible.
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION 67
SCENARIO
Please use the following to answer the next question:
Jason, a long-time customer of ABC insurance, was involved in a minor car accident a few months ago.
Although no one was hurt, Jason has been plagued by texts and calls from a company called Erbium Insurance offering to help him recover compensation for personal injury. Jason has heard about insurance companies selling customers' data to third parties, and he's convinced that Erbium must have gotten his information from ABC.
Jason has also been receiving an increased amount of marketing information from ABC, trying to sell him their full range of their insurance policies.
Perturbed by this, Jason has started looking at price comparison sites on the Internet and has been shocked to find that other insurers offer much cheaper rates than ABC, even though he has been a loyal customer for many years. When his ABC policy comes up for renewal, he decides to switch to Xentron Insurance.
In order to activate his new insurance policy, Jason needs to supply Xentron with information about his No Claims bonus, his vehicle and his driving history. After researching his rights under the GDPR, he writes to ask ABC to transfer his information directly to Xentron. He also takes this opportunity to ask ABC to stop using his personal data for marketing purposes.
ABC supplies Jason with a PDF and XML (Extensible Markup Language) versions of his No Claims Certificate, but tells Jason it cannot transfer his data directly to Xentron at this is not technically feasible. ABC also explains that Jason's contract included a provision whereby Jason agreed that his data could be used for marketing purposes; according to ABC, it is too late for Jason to change his mind about this. It angers Jason when he recalls the wording of the contract, which was filled with legal jargon and very confusing.
In the meantime, Jason is still receiving unwanted calls from Erbium Insurance. He writes to Erbium to ask for the name of the organization that supplied his details to them. He warns Erbium 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.
Erbium's response letter confirms Jason's suspicions. Erbium is ABC's wholly owned subsidiary, and they received information about Jason's accident from ABC shortly after Jason submitted his accident claim.
Erbium assures Jason that there has been no breach of the GDPR, as Jason's contract included a provision in which he agreed to share his information with ABC's affiliates for business purposes.
Jason is disgusted by the way in which he has been treated by ABC, and writes to them insisting that all his information be erased from their computer system.
After Jason has exercised his right to restrict the use of his data, under what conditions would Erbium have grounds for refusing to comply?
- A. If Erbium is entitled to use of the data as an affiliate of ABC.
- B. If the accuracy of the data is not an aspect that Jason is disputing.
- C. If the data becomes necessary to defend Erbium's legal rights.
- D. If Erbium also uses the data to conduct public health research.
Answer: A
NEW QUESTION 68
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:
Student records, including names, student numbers, home addresses, pre-university information, university attendance and performance records, details of special educational needs and financial information.
Staff records, including autobiographical materials (such as curricula, professional contact files, student evaluations and other relevant teaching files).
Alumni records, including birthplaces, years of birth, dates of matriculation and conferrals of degrees. These records are available to former students after registering through Granchester's Alumni portal. Department for Education records, showing how certain demographic groups (such as first-generation students) could be expected, on average, to progress. These records do not contain names or identification numbers.
Under their security policy, the University encrypts all of its personal data records in transit and at rest.
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.
Anna will find that a risk analysis is NOT necessary in this situation as long as?
- A. The algorithms that Frank uses for the processing are technologically sound
- B. The data subjects gave their unambiguous consent for the original processing
- C. The data subjects are no longer current students of Frank's
- D. The processing will not negatively affect the rights of the data subjects
Answer: B
NEW QUESTION 69
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