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CIPP-E Sample Questions Answers

Questions 4

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.

Why is the additional measure recommended by Jackie sufficient foe using UpFinance?

Options:

A.

UpFinance is an established 7-year-old business.

B.

UpFinance is in a highly regulated financial industry

C.

UpFinance is based in a country without surveillance laws.

D.

UpFinance implements sufficient data protection measures

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Questions 5

WP29’s “Guidelines on Personal data breach notification under Regulation 2016/679’’ provides examples of ways to communicate data breaches transparently. Which of the following was listed as a method that would NOT be effective for communicating a breach to data subjects?

Options:

A.

A postal notification

B.

A direct electronic message

C.

A notice on a corporate blog

D.

A prominent advertisement in print media

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Questions 6

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?

Options:

A.

Use a layered privacy notice on its website and in its email communications.

B.

Identify uses of data in a privacy notice mailed to the data subject.

C.

Provide only general information about its processing activities and offer a toll-free number for more information.

D.

Place a banner on its website stipulating that visitors agree to its privacy policy and terms of use by visiting the site.

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Questions 7

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?

Options:

A.

Privacy dashboard notice

B.

Visualization notice.

C.

Just-in-lime notice.

D.

Layered notice.

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Questions 8

SCENARIO

Please use the following to answer the next question:

Louis, a long-time customer of Bedrock Insurance, was involved in a minor car accident a few months ago. Although no one was hurt, Louis has been plagued by texts and calls from a company called Accidentable offering to help him recover compensation for personal injury. Louis has heard about insurance companies selling customers’ data to third parties, and he’s convinced that Accidentable must have gotten his information from Bedrock Insurance.

Louis has also been receiving an increased amount of marketing information from Bedrock, trying to sell him their full range of their insurance policies.

Perturbed by this, Louis has started looking at price comparison sites on the internet and has been shocked to find that other insurers offer much cheaper rates than Bedrock, even though he has been a loyal customer for many years. When his Bedrock policy comes up for renewal, he decides to switch to Zantrum Insurance.

In order to activate his new insurance policy, Louis needs to supply Zantrum with information about his No Claims bonus, his vehicle and his driving history. After researching his rights under the GDPR, he writes to ask Bedrock to transfer his information directly to Zantrum. He also takes this opportunity to ask Bedrock to stop using his personal data for marketing purposes.

Bedrock supplies Louis with a PDF and XML (Extensible Markup Language) versions of his No Claims Certificate, but tells Louis it cannot transfer his data directly to Zantrum as this is not technically feasible. Bedrock also explains that Louis’s contract included a provision whereby Louis agreed that his data could be used for marketing purposes; according to Bedrock, it is too late for Louis to change his mind about this. It angers Louis when he recalls the wording of the contract, which was filled with legal jargon and very confusing.

In the meantime, Louis is still receiving unwanted calls from Accidentable Insurance. He writes to Accidentable to ask for the name of the organization that supplied his details to them. He warns Accidentable that he plans to complain to the data protection authority, because he thinks their company has been using his data unlawfully. His letter states that he does not want his data being used by them in any way.

Accidentable’s response letter confirms Louis’s suspicions. Accidentable is Bedrock Insurance’s wholly owned subsidiary, and they received information about Louis’s accident from Bedrock shortly after Louis submitted his accident claim. Accidentable assures Louis that there has been no breach of the GDPR, as Louis’s contract included, a provision in which he agreed to share his information with Bedrock’s affiliates for business purposes.

Louis is disgusted by the way in which he has been treated by Bedrock, and writes to them insisting that all his information be erased from their computer system.

Which statement accurately summarizes Bedrock’s obligation in regard to Louis’s data portability request?

Options:

A.

Bedrock does not have a duty to transfer Louis’s data to Zantrum if doing so is legitimately not technically feasible.

B.

Bedrock does not have to transfer Louis’s data to Zantrum because the right to data portability does not apply where personal data are processed in order to carry out tasks in the public interest.

C.

Bedrock has failed to comply with the duty to transfer Louis’s data to Zantrum because the duty applies wherever personal data are processed by automated means and necessary for the performance of a contract with the customer.

D.

Bedrock has failed to comply with the duty to transfer Louis’s data to Zantrum because it has an obligation to develop commonly used, machine-readable and interoperable formats so that all customer data can be ported to other insurers on request.

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Questions 9

Which of the following elements does NOT need to be presented to a data subject in order to collect valid consent for the use of cookies?

Options:

A.

A "Cookies Settings" button.

B.

A "Reject All" cookies button.

C.

A list of cookies that may be placed.

D.

Information on the purpose of the cookies.

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Questions 10

In the event of a data breach, which type of information are data controllers NOT required to provide to either the supervisory authorities or the data subjects?

Options:

A.

The predicted consequences of the breach.

B.

The measures being taken to address the breach.

C.

The type of security safeguards used to protect the data.

D.

The contact details of the appropriate data protection officer.

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Questions 11

Which of the following was the first legally binding international instrument in the area of data protection?

Options:

A.

Convention 108.

B.

General Data Protection Regulation.

C.

Universal Declaration of Human Rights.

D.

EU Directive on Privacy and Electronic Communications.

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Questions 12

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?

Options:

A.

Ruth's implied consent.

B.

Protecting the vital interest of Ruth.

C.

Performance of a contract with Ruth.

D.

Protecting against legal liability from Ruth.

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Questions 13

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

Which of the following principles has likely been violated in the processing of the

photocall photos containing personal data?

Options:

A.

Adequacy.

B.

Lawfulness.

C.

Transparency.

D.

Data minimization.

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Questions 14

According to the EDPB Guidelines 01/2021 on Examples regarding Personal Data Breach Notification, if exfiltration of job application data (submitted through online application forms and stored on a webserver) resulted in personal information being accessible to unauthorized persons, this would be primarily considered what kind of breach?

Options:

A.

An integrity breach.

B.

An accuracy breach.

C.

An availability breach.

D.

A confidentiality breach.

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Questions 15

Which statement is correct when considering the right to privacy under Article 8 of the European Convention on Human Rights (ECHR)?

Options:

A.

The right to privacy is an absolute right

B.

The right to privacy has to be balanced against other rights under the ECHR

C.

The right to freedom of expression under Article 10 of the ECHR will always override the right to privacy

D.

The right to privacy protects the right to hold opinions and to receive and impart ideas without interference

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Questions 16

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?

Options:

A.

Where the controller is registered as a company.

B.

Where the processor is registered as a company.

C.

Where decisions about the processing activities are made.

D.

Where the director with responsibility for processing activities is located.

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Questions 17

SCENARIO

Please use the following to answer the next question:

T-Craze, a German-headquartered specialty t-shirt company, was successfully selling to large German metropolitan cities. However, after a recent merger with another German-based company that was selling to a broader European market, T-Craze revamped its marketing efforts to sell to a wider audience. These efforts included a complete redesign of its logo to reflect the recent merger, and improvements to its website meant to capture more information about visitors through the use of cookies.

T-Craze also opened various office locations throughout Europe to help expand its business. While Germany

Target, a renowned marketing firm based in the Philippines, to run its latest marketing campaign. After thorough research, Right Target determined that T-Craze is most successful with customers between the ages of 18 and 22. Thus, its first campaign targeted university students in several European capitals, which yielded nearly 40% new customers for T-Craze in one quarter. Right Target also ran subsequent campaigns for T- Craze, though with much less success.

The last two campaigns included a wider demographic group and resulted in countless unsubscribe requests, including a large number in Spain. In fact, the Spanish data protection authority received a complaint from Sofia, a mid-career investment banker. Sofia was upset after receiving a marketing communication even after unsubscribing from such communications from the Right Target on behalf of T-Craze.

What is the best option for the lead regulator when responding to the Spanish supervisory authority’s notice that it plans to take action regarding Sofia’s complaint?

Options:

A.

Accept, because it did not receive any complaints.

B.

Accept, because GDPR permits non-lead authorities to take action for such complaints.

C.

Reject, because Right Target’s processing was conducted throughout Europe.

D.

Reject, because GDPR does not allow other supervisory authorities to take action if there is a lead authority.

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Questions 18

Which of the following is NOT considered a fair processing practice in relation to the transparency principle?

Options:

A.

Providing a multi-layered privacy notice, in a website environment.

B.

Providing a QR code linking to more detailed privacy notice, in a CCTV sign.

C.

Providing a hyperlink to the organization’s home page, in a hard copy application form.

D.

Providing a “just-in-time” contextual pop-up privacy notice, in an online application from field.

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Questions 19

SCENARIO

Please use the following to answer the next question:

ABC Hotel Chain and XYZ Travel Agency are U.S.-based multinational companies. They use an internet-based common platform for collecting and sharing their customer data with each other, in order to integrate their marketing efforts. Additionally, they agree on the data to be stored, how reservations will be booked and confirmed, and who has access to the stored data.

Mike, an EU resident, has booked travel itineraries in the past through XYZ Travel Agency to stay at ABC Hotel Chain’s locations. XYZ Travel Agency offers a rewards program that allows customers to sign up to accumulate points that can later be redeemed for free travel. Mike has signed the agreement to be a rewards program member.

Now Mike wants to know what personal information the company holds about him. He sends an email requesting access to his data, in order to exercise what he believes are his data subject rights.

In which of the following situations would ABC Hotel Chain and XYZ Travel Agency NOT have to honor Mike’s data access request?

Options:

A.

The request is to obtain access and correct inaccurate personal data in his profile.

B.

The request is to obtain access and information about the purpose of processing his personal data.

C.

The request is to obtain access and erasure of his personal data while keeping his rewards membership.

D.

The request is to obtain access and the categories of recipients who have received his personal data to process his rewards membership.

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Questions 20

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?

Options:

A.

How security measures might evolve in the future

B.

Which security measures are endorsed by a majority of experts.

C.

How the public perceives what constitutes adequate security measures

D.

Which kinds of security measures your company has employed in the past

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Questions 21

Which of the following describes a mandatory requirement for a group of undertakings that wants to appoint a single data protection officer?

Options:

A.

The group of undertakings must obtain approval from a supervisory authority.

B.

The group of undertakings must be comprised of organizations of similar sizes and functions.

C.

The data protection officer must be located in the country where the data controller has its main establishment.

D.

The data protection officer must be easily accessible from each establishment where the undertakings are located.

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Questions 22

A mobile device application that uses cookies will be subject to the consent requirement of which of the

following?

Options:

A.

The ePrivacy Directive

B.

The E-Commerce Directive

C.

The Data Retention Directive

D.

The EU Cybersecurity Directive

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Questions 23

SCENARIO

Please use the following to answer the next question:

Due to rapidly expanding workforce, Company A has decided to outsource its payroll function to Company B. Company B is an established payroll service provider with a sizable client base and a solid reputation in the industry.

Company B’s payroll solution for Company A relies on the collection of time and attendance data obtained via a biometric entry system installed in each of Company A’s factories. Company B won’t hold any biometric data itself, but the related data will be uploaded to Company B’s UK servers and used to provide the payroll service. Company B’s live systems will contain the following information for each of Company A’s employees:

  • Name
  • Address
  • Date of Birth
  • Payroll number
  • National Insurance number
  • Sick pay entitlement
  • Maternity/paternity pay entitlement
  • Holiday entitlement
  • Pension and benefits contributions
  • Trade union contributions

Jenny is the compliance officer at Company A. She first considers whether Company A needs to carry out a data protection impact assessment in relation to the new time and attendance system, but isn’t sure whether or not this is required.

Jenny does know, however, that under the GDPR there must be a formal written agreement requiring Company B to use the time and attendance data only for the purpose of providing the payroll service, and to apply appropriate technical and organizational security measures for safeguarding the data. Jenny suggests that Company B obtain advice from its data protection officer. The company doesn’t have a DPO but agrees, in the interest of finalizing the contract, to sign up for the provisions in full. Company A enters into the contract.

Weeks later, while still under contract with Company A, Company B embarks upon a separate project meant to enhance the functionality of its payroll service, and engages Company C to help. Company C agrees to extract all personal data from Company B’s live systems in order to create a new database for Company B.

This database will be stored in a test environment hosted on Company C’s U.S. server. The two companies agree not to include any data processing provisions in their services agreement, as data is only being used for IT testing purposes.

Unfortunately, Company C’s U.S. server is only protected by an outdated IT security system, and suffers a cyber security incident soon after Company C begins work on the project. As a result, data relating to Company A’s employees is visible to anyone visiting Company C’s website. Company A is unaware of this until Jenny receives a letter from the supervisory authority in connection with the investigation that ensues. As soon as Jenny is made aware of the breach, she notifies all affected employees.

The GDPR requires sufficient guarantees of a company’s ability to implement adequate technical and organizational measures. What would be the most realistic way that Company B could have fulfilled this requirement?

Options:

A.

Hiring companies whose measures are consistent with recommendations of accrediting bodies.

B.

Requesting advice and technical support from Company A’s IT team.

C.

Avoiding the use of another company’s data to improve their own services.

D.

Vetting companies’ measures with the appropriate supervisory authority.

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Questions 24

Which of the following entities would most likely be exempt from complying with the GDPR?

Options:

A.

A South American company that regularly collects European customers’ personal data.

B.

A company that stores all customer data in Australia and is headquartered in a European Union (EU) member state.

C.

A Chinese company that has opened a satellite office in a European Union (EU) member state to service European customers.

D.

A North American company servicing customers in South Africa that uses a cloud storage system made by a European company.

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Questions 25

Under the GDPR, which of the following is true in regard to adequacy decisions involving cross-border transfers?

Options:

A.

The European Commission can adopt an adequacy decision for individual companies.

B.

The European Commission can adopt, repeal or amend an existing adequacy decision.

C.

EU member states are vested with the power to accept or reject a European Commission adequacy decision.

D.

To be considered as adequate, third countries must implement the EU General Data Protection Regulation into their national legislation.

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Questions 26

Which sentence BEST summarizes the concepts of “fairness,” “lawfulness” and “transparency”, as expressly required by Article 5 of the GDPR?

Options:

A.

Fairness and transparency refer to the communication of key information before collecting data; lawfulness refers to compliance with government regulations.

B.

Fairness refers to limiting the amount of data collected from individuals; lawfulness refers to the approval of company guidelines by the state; transparency solely relates to communication of key information before collecting data.

C.

Fairness refers to the security of personal data; lawfulness and transparency refers to the analysis of ordinances to ensure they are uniformly enforced.

D.

Fairness refers to the collection of data from diverse subjects; lawfulness refers to the need for legal rules to be uniform; transparency refers to giving individuals access to their data.

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Questions 27

A grade school is planning to use facial recognition to track student attendance. Which of the following may provide a lawful basis for this processing?

Options:

A.

The school places a notice near each camera.

B.

The school gets explicit consent from the students.

C.

Processing is necessary for the legitimate interests pursed by the school.

D.

A state law requires facial recognition to verify attendance.

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Questions 28

What is one major goal that the OECD Guidelines, Convention 108 and the Data Protection Directive (Directive 95/46/EC) all had in common but largely failed to achieve in Europe?

Options:

A.

The establishment of a list of legitimate data processing criteria

B.

The creation of legally binding data protection principles

C.

The synchronization of approaches to data protection

D.

The restriction of cross-border data flow

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Questions 29

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 adopts the We-Track-U pilot plan, why is it likely to be subject to the territorial scope of the GDPR?

Options:

A.

Its plan would be in the context of the establishment of a controller in the Union.

B.

It would be offering goods or services to data subjects in the Union.

C.

It is engaging in commercial activities conducted in the Union.

D.

It is monitoring the behavior of data subjects in the Union.

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Questions 30

Since blockchain transactions are classified as pseudonymous, are they considered to be within the material scope of the GDPR, or outside of it?

Options:

A.

Outside the material scope of the GDPR, because transactions do not include personal data about data subjects in the European Union.

B.

Outside the material scope of the GDPR, because transactions are for personal or household purposes.

C.

Within the material scope of the GDPR to the extent that transactions include data subjects in the European Union.

D.

Within the material scope of the GDPR but outside of the territorial scope, because blockchains are decentralized.

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Questions 31

Which of the following was the first to implement national law for data protection in 1973?

Options:

A.

France

B.

Sweden

C.

Germany

D.

United Kingdom

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Questions 32

SCENARIO

Please use the following to answer the next question:

Brady is a computer programmer based in New Zealand who has been running his own business for two years. Brady’s business provides a low-cost suite of services to customers throughout the European Economic Area (EEA). The services are targeted towards new and aspiring small business owners. Brady’s company, called Brady Box, provides web page design services, a Social Networking Service (SNS) and consulting services that help people manage their own online stores.

Unfortunately, Brady has been receiving some complaints. A customer named Anna recently uploaded her plans for a new product onto Brady Box’s chat area, which is open to public viewing. Although she realized her mistake two weeks later and removed the document, Anna is holding Brady Box responsible for not noticing the error through regular monitoring of the website. Brady believes he should not be held liable.

Another customer, Felipe, was alarmed to discover that his personal information was transferred to a third- party contractor called Hermes Designs and worries that sensitive information regarding his business plans may be misused. Brady does not believe he violated European privacy rules. He provides a privacy notice to all of his customers explicitly stating that personal data may be transferred to specific third parties in fulfillment of a requested service. Felipe says he read the privacy notice but that it was long and complicated

Brady continues to insist that Felipe has no need to be concerned, as he can personally vouch for the integrity of Hermes Designs. In fact, Hermes Designs has taken the initiative to create sample customized banner advertisements for customers like Felipe. Brady is happy to provide a link to the example banner ads, now posted on the Hermes Designs webpage. Hermes Designs plans on following up with direct marketing to these customers.

Brady was surprised when another customer, Serge, expressed his dismay that a quotation by him is being used within a graphic collage on Brady Box’s home webpage. The quotation is attributed to Serge by first and last name. Brady, however, was not worried about any sort of litigation. He wrote back to Serge to let him know that he found the quotation within Brady Box’s Social Networking Service (SNS), as Serge himself had posted the quotation. In his response, Brady did offer to remove the quotation as a courtesy.

Despite some customer complaints, Brady’s business is flourishing. He even supplements his income through online behavioral advertising (OBA) via a third-party ad network with whom he has set clearly defined roles. Brady is pleased that, although some customers are not explicitly aware of the OBA, the advertisements contain useful products and services.

Based on the scenario, what is the main reason that Brady should be concerned with Hermes Designs’ handling of customer personal data?

Options:

A.

The data is sensitive.

B.

The data is uncategorized.

C.

The data is being used for a new purpose.

D.

The data is being processed via a new means.

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Questions 33

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.

Who-R-U is NOT required to notify the local German DPA about the laptop theft because?

Options:

A.

The company isn’t a controller established in the Union.

B.

The laptop belonged to a company located in Canada.

C.

The data isn’t considered personally identifiable financial information.

D.

There is no evidence that the thieves have accessed the data on the laptop.

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Questions 34

Under the GDPR, where personal data is not obtained directly from the data subject, a controller is exempt from directly providing information about processing to the data subject if?

Options:

A.

The data subject already has information regarding how his data will be used

B.

The provision of such information to the data subject would be too problematic

C.

Third-party data would be disclosed by providing such information to the data subject

D.

The processing of the data subject’s data is protected by appropriate technical measures

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Questions 35

Which type of personal data does the GDPR define as a “special category” of personal data?

Options:

A.

Educational history.

B.

Trade-union membership.

C.

Closed Circuit Television (CCTV) footage.

D.

Financial information.

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Questions 36

SCENARIO

Please use the following to answer the next question:

Brady is a computer programmer based in New Zealand who has been running his own business for two years. Brady’s business provides a low-cost suite of services to customers throughout the European Economic Area (EEA). The services are targeted towards new and aspiring small business owners. Brady’s company, called Brady Box, provides web page design services, a Social Networking Service (SNS) and consulting services that help people manage their own online stores.

Unfortunately, Brady has been receiving some complaints. A customer named Anna recently uploaded her plans for a new product onto Brady Box’s chat area, which is open to public viewing. Although she realized her mistake two weeks later and removed the document, Anna is holding Brady Box responsible for not noticing the error through regular monitoring of the website. Brady believes he should not be held liable.

Another customer, Felipe, was alarmed to discover that his personal information was transferred to a third- party contractor called Hermes Designs and worries that sensitive information regarding his business plans may be misused. Brady does not believe he violated European privacy rules. He provides a privacy notice to all of his customers explicitly stating that personal data may be transferred to specific third parties in fulfillment of a requested service. Felipe says he read the privacy notice but that it was long and complicated

Brady continues to insist that Felipe has no need to be concerned, as he can personally vouch for the integrity of Hermes Designs. In fact, Hermes Designs has taken the initiative to create sample customized banner advertisements for customers like Felipe. Brady is happy to provide a link to the example banner ads, now posted on the Hermes Designs webpage. Hermes Designs plans on following up with direct marketing to these customers.

Brady was surprised when another customer, Serge, expressed his dismay that a quotation by him is being used within a graphic collage on Brady Box’s home webpage. The quotation is attributed to Serge by first and last name. Brady, however, was not worried about any sort of litigation. He wrote back to Serge to let him know that he found the quotation within Brady Box’s Social Networking Service (SNS), as Serge himself had posted the quotation. In his response, Brady did offer to remove the quotation as a courtesy.

Despite some customer complaints, Brady’s business is flourishing. He even supplements his income through online behavioral advertising (OBA) via a third-party ad network with whom he has set clearly defined roles. Brady is pleased that, although some customers are not explicitly aware of the OBA, the advertisements contain useful products and services.

Based on current trends in European privacy practices, which aspect of Brady Box’ Online Behavioral Advertising (OBA) is most likely to be insufficient if the company becomes established in Europe?

Options:

A.

The lack of the option to opt in.

B.

The level of security within the website.

C.

The contract with the third-party advertising network.

D.

The need to have the contents of the advertising approved.

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Questions 37

Why is advisable to avoid consent as a legal basis for an employer to process employee data?

Options:

A.

Employee data can only be processed if there is an approval from the data protection officer.

B.

Consent may not be valid if the employee feels compelled to provide it.

C.

An employer might have difficulty obtaining consent from every employee.

D.

Data protection laws do not apply to processing of employee data.

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Questions 38

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.

As a result of Sam’s actions, the Gummy Bear Company potentially violated Articles 33 and 34 of the GDPR and will be required to do what?

Options:

A.

Notify its Data Protection Authority about the data breach.

B.

Analyze and evaluate the liability for customers in Ireland.

C.

Analyze and evaluate all of its breach notification obligations.

D.

Notify all of its customers that reside in the European Union.

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Questions 39

What is the main task of the European Data Protection Board?

Options:

A.

To assess adequacy of data protection in third countries

B.

To ensure consistent application of the GDPR.

C.

To proactively prevent disputes between national supervisory authorities.

D.

To publish guidelines tor data subjects on how to property enforce their rights

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Questions 40

When is data sharing agreement MOST likely to be needed?

Options:

A.

When anonymized data is being shared.

B.

When personal data is being shared between commercial organizations acting as joint data controllers.

C.

When personal data is being proactively shared by a controller to support a police investigation.

D.

When personal data is being shared with a public authority with powers to require the personal data to be disclosed.

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Questions 41

Which of the following countries will continue to enjoy adequacy status under the GDPR, pending any future European Commission decision to the contrary?

Options:

A.

Greece

B.

Norway

C.

Australia

D.

Switzerland

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Questions 42

What is the key difference between the European Council and the Council of the European Union?

Options:

A.

The Council of the European Union is helmed by a president.

B.

The Council of the European Union has a degree of legislative power.

C.

The European Council focuses primarily on issues involving human rights.

D.

The European Council is comprised of the heads of each EU member state.

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Questions 43

Under what circumstances might the “soft opt-in” rule apply in relation to direct marketing?

Options:

A.

When an individual has not consented to the marketing.

B.

When an individual’s details are obtained from their inquiries about buying a product.

C.

Where an individual’s details have been obtained from a bought-in marketing list.

D.

Where an individual is given the ability to unsubscribe from marketing emails sent to him.

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Questions 44

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?

Options:

A.

Processing the personal data upon documented instructions regarding data transfers outside of the EEA.

B.

Notification regarding third party requests for access to Liem and EcoMick’s personal data.

C.

Assistance to Liem and EcoMick in their compliance with data protection impact assessments.

D.

Returning or deleting personal data after the end of the provision of the services.

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Questions 45

A company plans to transfer employee health information between two of its entities in France. To maintain the security of the processing, what would be the most important security measure to apply to the health data transmission?

Options:

A.

Inform the data subject of the security measures in place.

B.

Ensure that the receiving entity has signed a data processing agreement.

C.

Encrypt the transferred data in transit and at rest.

D.

Conduct a data protection impact assessment.

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Questions 46

Which of the following would NOT be relevant when determining if a processing activity would be considered profiling?

Options:

A.

If the processing is to be performed by a third-party vendor

B.

If the processing involves data that is considered personal data

C.

If the processing of the data is done through automated means

D.

If the processing is used to predict the behavior of data subjects

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Questions 47

SCENARIO

Please use the following to answer the next question:

Building Block Inc. is a multinational company, headquartered in Chicago with offices throughout the United States, Asia, and Europe (including Germany, Italy, France and Portugal). Last year the company was the victim of a phishing attack that resulted in a significant data breach. The executive board, in coordination with the general manager, their Privacy Office and the Information Security team, resolved to adopt additional security measures. These included training awareness programs, a cybersecurity audit, and use of a new software tool called SecurityScan, which scans employees’ computers to see if they have software that is no longer being supported by a vendor and therefore not getting security updates. However, this software also provides other features, including the monitoring of employees’ computers.

Since these measures would potentially impact employees, Building Block’s Privacy Office decided to issue a general notice to all employees indicating that the company will implement a series of initiatives to enhance information security and prevent future data breaches.

After the implementation of these measures, server performance decreased. The general manager instructed the Security team on how to use SecurityScan to monitor employees’ computers activity and their location. During these activities, the Information Security team discovered that one employee from Italy was daily connecting to a video library of movies, and another one from Germany worked remotely without authorization. The Security team reported these incidents to the Privacy Office and the general manager. In their report, the team concluded that the employee from Italy was the reason why the server performance decreased.

Due to the seriousness of these infringements, the company decided to apply disciplinary measures to both employees, since the security and privacy policy of the company prohibited employees from installing software on the company’s computers, and from working remotely without authorization.

What would be the MOST APPROPRIATE way for Building Block to handle the situation with the employee from Italy?

Options:

A.

Since the GDPR does not apply to this situation, the company would be entitled to apply any disciplinary measure authorized under Italian labor law.

B.

Since the employee was the cause of a serious risk for the server performance and their data, the company would be entitled to apply disciplinary measures to this employee, including fair dismissal.

C.

Since the employee was not informed that the security measures would be used for other purposes such as monitoring, the company could face difficulties in applying any disciplinary measures to this employee.

D.

Since this was a serious infringement, but the employee was not appropriately informed about the consequences the new security measures, the company would be entitled to apply some disciplinary measures, but not dismissal.

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Questions 48

In which scenario is a Controller most likely required to undertake a Data Protection Impact Assessment?

Options:

A.

When the controller is collecting email addresses from individuals via an online registration form for marketing purposes.

B.

When personal data is being collected and combined with other personal data to profile the creditworthiness of individuals.

C.

When the controller is required to have a Data Protection Officer.

D.

When personal data is being transferred outside of the EEA.

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Questions 49

A company has collected personal data tor direct marketing purpose on the basis of consent. It is now considering using this data to develop new products through analytics. What is the company first required to do?

Options:

A.

Obtain specific consent for the new processing

B.

Only inform the data subjects of the new purpose.

C.

Proceed no further, as such repurposing is unlawful

D.

Update the privacy notice upon which consent was given

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Questions 50

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?

Options:

A.

The company will be undertaking processing activities involving sensitive data categories such as financial and children’s data.

B.

The company employs approximately 650 people and will therefore be carrying out extensive processing activities.

C.

The company plans to undertake profiling of its customers through analysis of their purchasing patterns.

D.

The company intends to shift their business model to rely more heavily on online shopping.

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Questions 51

A company is hesitating between Binding Corporate Rules and Standard Contractual Clauses as a global data transfer solution. Which of the following statements would help the company make an effective decision?

Options:

A.

Binding Corporate Rules are especially recommended for small and medium companies.

B.

The data exporter does not need to be located in the EU for the standard Contractual Clauses.

C.

Binding Corporate Rules provide a global solution for all the entities of a company that are bound by the intra-group agreement.

D.

The company will need the prior authorization of all EU data protection authorities for concluding Standard Contractual Clauses.

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Questions 52

Which of the following would most likely NOT be covered by the definition of “personal data” under the GDPR?

Options:

A.

The payment card number of a Dutch citizen

B.

The U.S. social security number of an American citizen living in France

C.

The unlinked aggregated data used for statistical purposes by an Italian company

D.

The identification number of a German candidate for a professional examination in Germany

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Questions 53

In which case would a controller who has undertaken a DPIA most likely need to consult with a supervisory authority?

Options:

A.

Where the DPIA identifies that personal data needs to be transferred to other countries outside of the EEA.

B.

Where the DPIA identifies high risks to individuals’ rights and freedoms that the controller can take steps to reduce.

C.

Where the DPIA identifies that the processing being proposed collects the sensitive data of EU citizens.

D.

Where the DPIA identifies risks that will require insurance for protecting its business interests.

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Questions 54

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?

Options:

A.

A privacy notice containing brief information whilst offering access to further detail.

B.

A privacy notice explaining the consequences for opting out of the use of cookies on a website.

C.

An explanation of the security measures used when personal data is transferred to a third party.

D.

An efficient means of providing written consent in member states where they are required to do so.

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Questions 55

What permissions are required for a marketer to send an email marketing message to a consumer in the EU?

Options:

A.

A prior opt-in consent for consumers unless they are already customers.

B.

A pre-checked box stating that the consumer agrees to receive email marketing.

C.

A notice that the consumer’s email address will be used for marketing purposes.

D.

No prior permission required, but an opt-out requirement on all emails sent to consumers.

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Questions 56

Which sentence best describes proper compliance for an international organization using Binding Corporate Rules (BCRs) as a controller or processor?

Options:

A.

Employees must sign an ad hoc contractual agreement each time personal data is exported.

B.

All employees are subject to the rules in their entirety, regardless of where the work is taking place.

C.

All employees must follow the privacy regulations of the jurisdictions where the current scope of their work is established.

D.

Employees who control personal data must complete a rigorous certification procedure, as they are exempt from legal enforcement.

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Questions 57

To receive a preliminary interpretation on provisions of the GDPR, a national court will refer its case to which of the following?

Options:

A.

The Court of Justice of the European Union.

B.

The European Data Protection Supervisor.

C.

The European Court of Human Rights.

D.

The European Data Protection Board.

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Questions 58

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?

Options:

A.

How often promotional emails will be sent.

B.

Contact information of the hosting company.

C.

Technical and organizational measures to protect data.

D.

The categories of recipients with whom data will be shared.

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Questions 59

In relation to third countries and international organizations, which of the following shall, along with the supervisory authorities, take appropriate steps to develop international cooperation mechanisms for the enforcement of data protection legislation?

Options:

A.

The European Parliament

B.

The Council of the European Union.

C.

The designated Data Protection Officers

D.

The European Commission

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Questions 60

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?

Options:

A.

Submit a draft decision to other supervisory authorities for their opinion.

B.

Request that the other supervisory authorities provide the lead authority with a draft decision for its consideration.

C.

Submit a draft decision directly to the Commission to ensure the effectiveness of the consistency mechanism.

D.

Request that members of the seconding supervisory authority and the host supervisory authority co-draft a decision.

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Questions 61

What is the consequence if a processor makes an independent decision regarding the purposes and means of processing it carries out on behalf of a controller?

Options:

A.

The controller will be liable to pay an administrative fine

B.

The processor will be liable to pay compensation to affected data subjects

C.

The processor will be considered to be a controller in respect of the processing concerned

D.

The controller will be required to demonstrate that the unauthorized processing negatively affected one or more of the parties involved

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Questions 62

Under the Data Protection Law Enforcement Directive of the EU, a government can carry out covert investigations involving personal data, as long it is set forth by law and constitutes a measure that is both necessary and what?

Options:

A.

Prudent.

B.

Important.

C.

Proportionate.

D.

DPA-approved.

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Questions 63

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?

Options:

A.

When providing the information would go against a police order.

B.

When providing the information would involve a disproportionate effort

C.

When the personal data was obtained through multiple source in the public domain

D.

When the personal data was obtained 5 years before the entry into force of the GDPR

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Questions 64

Which area of privacy is a lead supervisory authority’s (LSA) MAIN concern?

Options:

A.

Data subject rights

B.

Data access disputes

C.

Cross-border processing

D.

Special categories of data

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Questions 65

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?

Options:

A.

A member of the judiciary involved in adjudicating a legal dispute involving the data subject and concerning the health of the data subject.

B.

A public authority responsible for public health, where the sharing of such information is considered necessary for the protection of the general populace.

C.

A health professional involved in the medical care for the data subject, where the data subject’s life hinges on the timely dissemination of such information.

D.

A journalist writing an article relating to the medical condition in QUESTION, who believes that the publication of such information is in the public interest.

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Questions 66

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?

Options:

A.

New corporate governance and code of conduct.

B.

A data protection impact assessment.

C.

A comprehensive data inventory.

D.

Hiring a data protection officer.

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Questions 67

Which of the following is an example of direct marketing that would be subject to European data protection laws?

Options:

A.

An updated privacy notice sent to an individual’s personal email address.

B.

A charity fundraising event notice sent to an individual at her business address.

C.

A service outage notification provided to an individual by recorded telephone message.

D.

A revision of contract terms conveyed to an individual by SMS from a marketing organization.

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Questions 68

The origin of privacy as a fundamental human right can be found in which document?

Options:

A.

Universal Declaration of Human Rights 1948.

B.

European Convention of Human Rights 1953.

C.

OECD Guidelines on the Protection of Privacy 1980.

D.

Charier of Fundamental Rights of the European Union 2000.

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Questions 69

The GDPR specifies fines that may be levied against data controllers for certain infringements. Which of the following infringements would be subject to the less severe administrative fine of up to 10 million euros (or in the case of an undertaking, up to 2% of the total worldwide annual turnover of the preceding financial year)?

Options:

A.

Failure to demonstrate that consent was given by the data subject to the processing of their personal data where it is used as the basis for processing.

B.

Failure to implement technical and organizational measures to ensure data protection is enshrined by design and default.

C.

Failure to process personal information in a manner compatible with its original purpose.

D.

Failure to provide the means for a data subject to rectify inaccuracies in personal data.

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Questions 70

SCENARIO

Please use the following to answer the next question:

Jane Stan's 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 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 belong a checkbox on a separate page in order to get their account approved on the platform.

The 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

Are the cybersecurity assessors required to sign a data processing agreement with the company in order to comply with the GDPR''

Options:

A.

No, the assessors do not quality as data processors as they only have access to encrypted data.

B.

No. the assessors do not quality as data processors as they do not copy the data to their facilities.

C.

Yes. the assessors a-e considered to be joint data controllers and must sign a mutual data processing agreement.

D.

Yes, the assessors are data processors and their processing of personal data must be governed by a separate contract or other legal act.

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Questions 71

Which of the following demonstrates compliance with the accountability principle found in Article 5, Section 2 of the GDPR?

Options:

A.

Anonymizing special categories of data.

B.

Conducting regular audits of the data protection program.

C.

Getting consent from the data subject for a cross border data transfer.

D.

Encrypting data in transit and at rest using strong encryption algorithms.

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Questions 72

SCENARIO

Please use the following to answer the next question:

The fitness company Vigotron has recently developed a new app called M-Health, which it wants to market on its website as a free download. Vigotron’s marketing manager asks his assistant Emily to create a webpage that describes the app and specifies the terms of use. Emily, who is new at Vigotron, is excited about this task. At her previous job she took a data protection class, and though the details are a little hazy, she recognizes that Vigotron is going to need to obtain user consent for use of the app in some cases. Emily sketches out the following draft, trying to cover as much as possible before sending it to Vigotron’s legal department.

Registration Form

Vigotron’s new M-Health app makes it easy for you to monitor a variety of health-related activities, including diet, exercise, and sleep patterns. M-Health relies on your smartphone settings (along with other third-party apps you may already have) to collect data about all of these important lifestyle elements, and provide the information necessary for you to enrich your quality of life. (Please click here to read a full description of the services that M-Health provides.)

Vigotron values your privacy. The M-Heaith app allows you to decide which information is stored in it, and which apps can access your data. When your device is locked with a passcode, all of your health and fitness data is encrypted with your passcode. You can back up data stored in the Health app to Vigotron’s cloud provider, Stratculous. (Read more about Stratculous here.)

Vigotron will never trade, rent or sell personal information gathered from the M-Health app. Furthermore, we will not provide a customer’s name, email address or any other information gathered from the app to any third- party without a customer’s consent, unless ordered by a court, directed by a subpoena, or to enforce the manufacturer’s legal rights or protect its business or property.

We are happy to offer the M-Health app free of charge. If you want to download and use it, we ask that you

first complete this registration form. (Please note that use of the M-Health app is restricted to adults aged 16 or older, unless parental consent has been given to minors intending to use it.)

  • First name:
  • Surname:
  • Year of birth:
  • Email:
  • Physical Address (optional*):
  • Health status:

*If you are interested in receiving newsletters about our products and services that we think may be of interest to you, please include your physical address. If you decide later that you do not wish to receive these newsletters, you can unsubscribe by sending an email to 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?

Options:

A.

Provide the user with logs of data collected through use of the app.

B.

Erase any data collected from the time the app was first used.

C.

Inform any third parties of the user’s withdrawal of consent.

D.

Cease processing any data collected through use of the app.

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Questions 73

Which of the following regulates the use of electronic communications services within the European Union?

Options:

A.

Regulator (EU) 2015/2120 of the European Parliament and of the Council of 25 November 2015.

B.

Regulation (EU) 2017/1953 of the European Parliament and of the Council of 25 October 2017.

C.

Directive 2002/58'EC of the European Parliament and of the Council of 12 July 2002.

D.

Directive (EU) 2019.789 of the European Parliament and of the Council of 17 April 2019.

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Questions 74

For which of the following operations would an employer most likely be justified in requesting the data subject’s consent?

Options:

A.

Posting an employee’s bicycle race photo on the company’s social media.

B.

Processing an employee’s health certificate in order to provide sick leave.

C.

Operating a CCTV system on company premises.

D.

Assessing a potential employee’s job application.

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Questions 75

How does the GDPR now define “processing”?

Options:

A.

Any act involving the collecting and recording of personal data.

B.

Any operation or set of operations performed on personal data or on sets of personal data.

C.

Any use or disclosure of personal data compatible with the purpose for which the data was collected.

D.

Any operation or set of operations performed by automated means on personal data or on sets of personal data.

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Questions 76

Under which of the following conditions does the General Data Protection Regulation NOT apply to the processing of personal data?

Options:

A.

When the personal data is processed only in non-electronic form

B.

When the personal data is collected and then pseudonymised by the controller

C.

When the personal data is held by the controller but not processed for further purposes

D.

When the personal data is processed by an individual only for their household activities

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Questions 77

Article 5(1)(b) of the GDPR states that personal data must be “collected for specified, explicit and legitimate purposes and not further processed in a way incompatible with those purposes.” Based on Article 5(1)(b),

what is the impact of a member state’s interpretation of the word “incompatible”?

Options:

A.

It dictates the level of security a processor must follow when using and storing personal data for two different purposes.

B.

It guides the courts on the severity of the consequences for those who are convicted of the intentional misuse of personal data.

C.

It sets the standard for the level of detail a controller must record when documenting the purpose for collecting personal data.

D.

It indicates the degree of flexibility a controller has in using personal data in ways that may vary from its original intended purpose.

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Questions 78

Which GDPR requirement will present the most significant challenges for organizations with Bring Your Own Device (BYOD) programs?

Options:

A.

Data subjects must be sufficiently informed of the purposes for which their personal data is processed.

B.

Processing of special categories of personal data on a large scale requires appointing a DPO.

C.

Personal data of data subjects must always be accurate and kept up to date.

D.

Data controllers must be in control of the data they hold at all times.

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Questions 79

A company would like to implement CCTV monitoring in its offices for safety and security purposes. Which of the following would be the best legal basis for the company to rely upon?

Options:

A.

Public interest.

B.

Individual consent

C.

Legitimate interest.

D.

Exercise of pubic authority.

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Questions 80

A U.S. company’s website sells widgets. Which of the following factors would NOT in itself subject the company to the GDPR?

Options:

A.

The widgets are offered in EU and priced in euro.

B.

The website is in English and French, and is accessible in France.

C.

An affiliate office is located in France but the processing is in the U.S.

D.

The website places cookies to monitor the EU website user behavior.

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Exam Code: CIPP-E
Exam Name: Certified Information Privacy Professional/Europe (CIPP/E)
Last Update: Sep 30, 2024
Questions: 268
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