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The CIPP-E Exam is a comprehensive exam that covers a range of topics related to data privacy, including the GDPR, data protection laws, privacy principles, and data breaches. CIPP-E exam is designed to test a candidate’s knowledge and understanding of these topics to ensure they are qualified to work in the field of data privacy. CIPP-E exam is administered online and consists of 90 multiple-choice questions that must be completed within 2.5 hours.
NEW QUESTION # 127
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?
- A. A confidentiality breach.
- B. An availability breach.
- C. An integrity breach.
- D. An accuracy breach.
Answer: A
Explanation:
According to the EDPB Guidelines 01/2021 on Examples regarding Personal Data Breach Notification, a confidentiality breach occurs when personal data is disclosed or made available to unauthorized persons. This is the case when exfiltration of job application data from a website results in personal information being accessible to unauthorized persons, such as hackers or competitors. This type of breach may pose a high risk to the rights and freedoms of the data subjects, as it may lead to identity theft, fraud, discrimination, or reputational damage. Therefore, the data controller should notify the data subjects without undue delay, unless the data is encrypted or anonymized, or the controller has taken subsequent measures to ensure that the high risk is no longer likely to materialize.
NEW QUESTION # 128
SCENARIO
Please use the following to answer the next question:
Sandy recently joined Market4U, an advertising technology company founded in 2016, as their VP of Privacy and Data Governance. Through her first initiative in conducting a data inventory, Sandy learned that Market4U maintains a list of 19 million global contacts that were collected throughout the course of Market4U's existence. Knowing the risk of having such a large amount of data, Sandy wanted to purge all contacts that were entered into Market4U's systems prior to May 2018, unless such contacts had a more recent interaction with Market4U content. However, Dan, the VP of Sales, informed Sandy that all of the contacts provide useful information regarding successful marketing campaigns and trends in industry verticals for Market4U's clients.
Dan also informed Sandy that he had wanted to focus on gaining more customers within the sports and entertainment industry. To assist with this behavior, Market4U's marketing team decided to add several new fields to Market4U's website forms, including forms for downloading white papers, creating accounts to participate in Market4U's forum, and attending events. Such fields include birth date and salary.
What should Sandy give as feedback to Dan and the marketing team regarding the new fields Dan wants to add to Market4U's forms?
- A. Eliminate the fields as they are not necessary for the purposes of providing white papers or registration for events.
- B. Eliminate the fields, as they are not proportional to the services being offered.
- C. Only request the information in brackets (i.e., age group and salary range).
- D. Make all the fields optional.
Answer: A
Explanation:
Sandy should give this feedback to Dan and the marketing team, as it reflects the principle of data minimization, which requires that personal data collected must be adequate, relevant and limited to what is necessary for the purposes of the processing1. Collecting birth date and salary information from customers who want to download white papers or register for events is not necessary for those purposes, and may pose risks for data protection and security. Moreover, such information may fall under the category of special data, which requires explicit consent from the data subjects and can only be processed under certain conditions2.
The other options do not comply with the principle of data minimization, as they still involve collecting more data than needed, even if they are optional or in brackets. References:
* Free CIPP/E Study Guide, page 23, section 3.1
* CIPP/E Certification, page 18, section 3.1
* The Ultimate CIPP/E Study Guide for 2023, page 16, section 3.1
* Principles - General Data Protection Regulation (GDPR), Article 5
* Special categories of personal data - General Data Protection Regulation (GDPR), Article 9
NEW QUESTION # 129
Company X has entrusted the processing of their payroll data to Provider Y.
Provider Y stores this encrypted data on its server. The IT department of Provider Y finds out that someone managed to hack into the system and take a copy of the data from its server. In this scenario, whom does Provider Y have the obligation to notify?
- A. The supervisory authority
- B. Company X
- C. The public
- D. Law enforcement
Answer: D
NEW QUESTION # 130
Which mechanism, new to the GDPR, now allows for the possibility of personal data transfers to third countries under Article 42?
- A. Approved certifications.
- B. Law enforcement requests.
- C. Standard contractual clauses.
- D. Binding corporate rules.
Answer: A
NEW QUESTION # 131
Pursuant to Article 4(5) of the GDPR, data is considered "pseudonymized" if?
- A. It cannot be attributed to a data subject without the use of additional information.
- B. It can only be attributed to a person by the controller.
- C. It can only be attributed to a person by a third party.
- D. It cannot be attributed to a person under any circumstances.
Answer: A
Explanation:
Reference https://dataprivacymanager.net/pseudonymization-according-to-the-gdpr/
NEW QUESTION # 132
SCENARIO
Please use the following to answer the next Question: 01
Louis, a long-time customer of Bedrock Insurance, was involved in a minor car accident a few months ago. Although no one was hurt, Louis has been plagued by texts and calls from a company called Accidentable offering to help him recover compensation for personal injury. Louis has heard about insurance companies selling customers' data to third parties, and he's convinced that Accidentable must have gotten his information from Bedrock Insurance.
Louis has also been receiving an increased amount of marketing information from Bedrock, trying to sell him their full range of their insurance policies.
Perturbed by this, Louis has started looking at price comparison sites on the internet and has been shocked to find that other insurers offer much cheaper rates than Bedrock, even though he has been a loyal customer for many years. When his Bedrock policy comes up for renewal, he decides to switch to Zantrum Insurance.
In order to activate his new insurance policy, Louis needs to supply Zantrum with information about his No Claims bonus, his vehicle and his driving history. After researching his rights under the GDPR, he writes to ask Bedrock to transfer his information directly to Zantrum. He also takes this opportunity to ask Bedrock to stop using his personal data for marketing purposes.
Bedrock supplies Louis with a PDF and XML (Extensible Markup Language) versions of his No Claims Certificate, but tells Louis it cannot transfer his data directly to Zantrum as this is not technically feasible. Bedrock also explains that Louis's contract included a provision whereby Louis agreed that his data could be used for marketing purposes; according to Bedrock, it is too late for Louis to change his mind about this. It angers Louis when he recalls the wording of the contract, which was filled with legal jargon and very confusing.
In the meantime, Louis is still receiving unwanted calls from Accidentable Insurance. He writes to Accidentable to ask for the name of the organization that supplied his details to them. He warns Accidentable that he plans to complain to the data protection authority, because he thinks their company has been using his data unlawfully. His letter states that he does not want his data being used by them in any way.
Accidentable's response letter confirms Louis's suspicions. Accidentable is Bedrock Insurance's wholly owned subsidiary, and they received information about Louis's accident from Bedrock shortly after Louis submitted his accident claim. Accidentable assures Louis that there has been no breach of the GDPR, as Louis's contract included, a provision in which he agreed to share his information with Bedrock's affiliates for business purposes.
Louis is disgusted by the way in which he has been treated by Bedrock, and writes to them insisting that all his information be erased from their computer system.
Based on the GDPR's position on the use of personal data for direct marketing purposes, which of the following is true about Louis's rights as a data subject?
- A. Louis has the right to object to the use of his data, unless his data is required by Bedrock for the purpose of exercising a legal claim.
- B. Louis has the right to object at any time to the use of his data and Bedrock must honor his request to cease use.
- C. Louis does not have the right to object to the use of his data because he previously consented to it.
- D. Louis does not have the right to object to the use of his data if Bedrock can demonstrate compelling legitimate grounds for the processing.
Answer: B
NEW QUESTION # 133
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.
Why would the consent provided by Ms. Iman NOT be considered valid in regard to JaphSoft?
- A. She was not told which controller would be processing her personal data.
- B. She has never made any purchases from JaphSoft and has no relationship with the company.
- C. She only viewed the visual representations of the privacy notice Liem provided.
- D. She did not read the privacy notice stating that her personal data would be shared.
Answer: D
Explanation:
The reason why the consent provided by Ms. Iman would not be considered valid in regard to JaphSoft is not because she did not provide her consent for her personal data to be shared with EcoMick, but because she was not told which controller would be processing her personal data. JaphSoft is a controller, as it determines the purpose and means of the processing of personal data, which is to improve its marketing optimization models and to provide better services to its customers. JaphSoft does not act only on the instructions of Liem and EcoMick, who are the original controllers of the personal data, but rather uses the data for its own benefit and interest. Therefore, JaphSoft should have obtained a separate consent from Ms. Iman, or relied on another lawful basis, such as legitimate interest, to process her personal data. Ms. Iman only gave consent to Liem, not to JaphSoft, and she was not informed that her personal data would be shared with or processed by another controller.
NEW QUESTION # 134
Which institution has the power to adopt findings that confirm the adequacy of the data protection level in a non-EU country?
- A. The European Council
- B. The European Commission
- C. The Article 29 Working Party
- D. The European Parliament
Answer: B
Explanation:
According to Article 45 of the GDPR, the European Commission has the power to determine, on the basis of an assessment, whether a non-EU country, a territory or a sector within that country, or an international organisation ensures an adequate level of data protection. This means that the data protection rules and standards in that country or organisation are equivalent to those in the EU. The effect of an adequacy decision is that personal data can flow freely from the EU to that country or organisation without any further safeguards or authorisations. The European Commission has adopted adequacy decisions for several countries and organisations, such as Japan, Canada, and the EU-US Data Privacy Framework. References: Data protection adequacy for non-EU countries, Adequate Level of Protection
NEW QUESTION # 135
SCENARIO
Please use the following to answer the next question:
BHealthy, a company based in Italy, is ready to launch a new line of natural products, with a focus on sunscreen. The last step prior to product launch is for BHealthy to conduct research to decide how extensively to market its new line of sunscreens across Europe. To do so, BHealthy teamed up with Natural Insight, a company specializing in determining pricing for natural products. BHealthy decided to share its existing customer information - name, location, and prior purchase history - with Natural Insight. Natural Insight intends to use this information to train its algorithm to help determine the price point at which BHealthy can sell its new sunscreens.
Prior to sharing its customer list, BHealthy conducted a review of Natural Insight's security practices and concluded that the company has sufficient security measures to protect the contact information. Additionally, BHealthy's data processing contractual terms with Natural Insight require continued implementation of technical and organization measures. Also indicated in the contract are restrictions on use of the data provided by BHealthy for any purpose beyond provision of the services, which include use of the data for continued improvement of Natural Insight's machine learning algorithms.
Under the GDPR, what are Natural Insight's security obligations with respect to the customer information it received from BHealthy?
- A. Only the security measures assessed by BHealthy prior to entering into the data processing contract.
- B. The level of security that a reasonable data subject whose data is processed would expect in relation to the data subject's purchase history.
- C. Absolute security since BHealthy is sharing personal data, including purchase history, with Natural Insight.
- D. Appropriate security that takes into account the industry practices for protecting customer contact information and purchase history.
Answer: D
Explanation:
According to Article 32 of the GDPR, the controller and the processor must implement appropriate technical and organisational measures to ensure a level of security appropriate to the risk of the processing1. The GDPR does not prescribe specific security measures, but rather provides a list of factors to consider when determining the appropriate level of security, such as:
The state of the art and the costs of implementation;
The nature, scope, context and purposes of processing;
The risk of varying likelihood and severity for the rights and freedoms of natural persons.
Therefore, the level of security required by the GDPR is not absolute, but relative to the specific circumstances of each processing activity. The GDPR also encourages the use of codes of conduct and certification mechanisms to demonstrate compliance with the security requirements1.
In the scenario, Natural Insight is a processor who receives customer information from BHealthy, a controller, for the purpose of providing pricing services. Natural Insight has a contractual obligation to implement technical and organisational measures to ensure the security of the data, as well as to comply with the GDPR. Natural Insight's security obligations are not limited to the measures assessed by BHealthy prior to entering into the contract, nor to the level of security that a reasonable data subject would expect. Rather, Natural Insight must take into account the industry practices for protecting customer contact information and purchase history, as well as the potential risks that may arise from the processing, such as data breaches, identity theft, fraud, or discrimination. Natural Insight must also keep up with the state of the art and the costs of implementation, and adjust its security measures accordingly.
Reference:
4: Art. 32 GDPR Security of processing
NEW QUESTION # 136
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?
- A. A notice on a corporate blog
- B. A prominent advertisement in print media
- C. A direct electronic message
- D. A postal notification
Answer: A
Explanation:
According to the WP29's "Guidelines on Personal data breach notification under Regulation 2016/679'', the communication of a personal data breach to the data subjects should be clear, concise, transparent, easily accessible and understandable, and use clear and plain language. The communication should also be made as soon as reasonably feasible and in close cooperation with the supervisory authority. The guidelines provide some examples of methods that may be effective for communicating a breach to data subjects, such as a direct electronic message (e.g. email, SMS, direct message), a postal notification, a prominent advertisement in print media, or a notice on the homepage of the affected website. However, the guidelines also state that a notice on a corporate blog or social media would not be an effective method of communication, as it would not reach all the affected data subjects and would not allow them to take immediate action to protect themselves.
Therefore, the correct answer is C. A notice on a corporate blog. References:
* WP29's "Guidelines on Personal data breach notification under Regulation 2016/679'', pages 20-211
NEW QUESTION # 137
SCENARIO
Please use the following to answer the next question:
Joe started the Gummy Bear Company in 2000 from his home in Vermont, USA.
Today, it is a multi-billion-dollar candy company operating in every continent. All of the company's IT servers are located in Vermont. This year Joe hires his son Ben to join the company and head up Project Big, which is a major marketing strategy to triple gross revenue in just 5 years. Ben graduated with a PhD in computer software from a top university. Ben decided to join his father's company, but is also secretly working on launching a new global online dating website company called Ben Knows Best.
Ben is aware that the Gummy Bear Company has millions of customers and believes that many of them might also be interested in finding their perfect match. For Project Big, Ben redesigns the company's online web portal and requires customers in the European Union and elsewhere to provide additional personal information in order to remain a customer. Project Ben begins collecting data about customers' philosophical beliefs, political opinions and marital status.
If a customer identifies as single, Ben then copies all of that customer's personal data onto a separate database for Ben Knows Best. Ben believes that he is not doing anything wrong, because he explicitly asks each customer to give their consent by requiring them to check a box before accepting their information. As Project Big is an important project, the company also hires a first year college student named Sam, who is studying computer science to help Ben out.
Ben calls out and Sam comes across the Ben Knows Best database. Sam is planning on going to Ireland over Spring Beak with 10 of his friends, so he copies all of the customer information of people that reside in Ireland so that he and his friends can contact people when they are in Ireland.
Joe also hires his best friend's daughter, Alice, who just graduated from law school in the U.S., to be the company's new General Counsel. Alice has heard about the GDPR, so she does some research on it. Alice approaches Joe and informs him that she has drafted up Binding Corporate Rules for everyone in the company to follow, as it is important for the company to have in place a legal mechanism to transfer data internally from the company's operations in the European Union to the U.S.
Joe believes that Alice is doing a great job, and informs her that she will also be in-charge of handling a major lawsuit that has been brought against the company in federal court in the U.S. To prepare for the lawsuit, Alice instructs the company's IT department to make copies of the computer hard drives from the entire global sales team, including the European Union, and send everything to her so that she can review everyone's information. Alice believes that Joe will be happy that she did the first level review, as it will save the company a lot of money that would otherwise be paid to its outside law firm.
Ben's collection of additional data from customers created several potential issues for the company, which would most likely require what?
- A. Hiring a data protection officer.
- B. A data protection impact assessment.
- C. A comprehensive data inventory.
- D. New corporate governance and code of conduct.
Answer: D
NEW QUESTION # 138
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?
- A. Hiring companies whose measures are consistent with recommendations of accrediting bodies.
- B. Vetting companies' measures with the appropriate supervisory authority.
- C. Requesting advice and technical support from Company A's IT team.
- D. Avoiding the use of another company's data to improve their own services.
Answer: A
Explanation:
Reference https://www.knowyourcompliance.com/gdpr-technical-organisational-measures/
NEW QUESTION # 139
Which of the following was the first to implement national law for data protection in 1973?
- A. Germany
- B. Sweden
- C. France
- D. United Kingdom
Answer: B
Explanation:
Reference:
Sweden was the first country to enact a national data protection law in 1973, called the Data Act. It went into effect on 1 July 1974 and required licenses by the Swedish Data Protection Authority for information systems handling personal data. The law was a result of public concern about the use of computers and the potential abuse of personal data by the government and other entities. The law was later superseded by the Personal Data Act in 1998, which implemented the EU Data Protection Directive. Reference: Data Act (Sweden) - Wikipedia, Data Privacy Act: A Brief History of Modern Data Privacy Laws - eperi, Swedish Authority for Privacy Protection - Wikipedia Learn more
1en.wikipedia.org2blog.eperi.c
NEW QUESTION # 140
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?
- A. The provision of such information to the data subject would be too problematic
- B. The processing of the data subject's data is protected by appropriate technical measures
- C. The data subject already has information regarding how his data will be used
- D. Third-party data would be disclosed by providing such information to the data subject
Answer: C
Explanation:
Reference https://dataprivacymanager.net/gdpr-exemptions-from-the-obligation-to-provide-information-to-the- individual-data-subject/
NEW QUESTION # 141
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?
- A. Proceed no further, as such repurposing is unlawful
- B. Obtain specific consent for the new processing
- C. Update the privacy notice upon which consent was given
- D. Only inform the data subjects of the new purpose.
Answer: B
NEW QUESTION # 142
In which of the following cases, cited as an example by a WP29 guidance, would conducting a single data protection impact assessment to address multiple processing operations be allowed?
- A. A medical organization that wants to begin genetic testing to support earlier research for which they have performed a DPIA.
- B. A data controller who plans to use a new technology product that has already undergone a DPIA by the product's provider.
- C. A marketing team that wants to collect mailing addresses of customers for whom they already have email addresses.
- D. A railway operator who plans to evaluate the same video surveillance in all the train stations of his company.
Answer: D
NEW QUESTION # 143
A data controller appoints a data protection officer. Which of the following conditions would NOT result in an infringement of Articles 37 to 39 of the GDPR?
- A. If the data protection officer lacks ISO 27001 auditor certification.
- B. If the data protection officer is provided by the data processor.
- C. If the data protection officer also manages the marketing budget.
- D. If the data protection officer receives instructions from the data controller.
Answer: A
Explanation:
Reference:
A data controller appointing a data protection officer who lacks ISO 27001 auditor certification would not result in an infringement of Articles 37 to 39 of the GDPR. According to Article 37 (5) of the GDPR, the data protection officer must be designated on the basis of professional qualities and, in particular, expert knowledge of data protection law and practices and the ability to fulfil the tasks referred to in Article 39 1. However, the GDPR does not specify any formal qualifications or certifications that the data protection officer must have, and leaves it to the discretion of the controller or the processor to determine the level of expertise required, depending on the complexity and sensitivity of the data processing activities 2. Therefore, the lack of ISO 27001 auditor certification, which is a standard for information security management systems, does not necessarily mean that the data protection officer is not qualified or competent for the role.
The other options are incorrect because they would result in an infringement of Articles 37 to 39 of the GDPR. According to Article 37 (6) of the GDPR, the data protection officer may be a staff member of the controller or the processor, or fulfil the tasks on the basis of a service contract 1. However, the data protection officer must be independent and report directly to the highest management level of the controller or the processor 3. Therefore, if the data protection officer is provided by the data processor, there may be a conflict of interest or a lack of autonomy, which would violate Article 38 (3) and (6) of the GDPR 4.
According to Article 38 (6) of the GDPR, the data protection officer may fulfil other tasks and duties, provided that they do not result in a conflict of interests 4. However, managing the marketing budget would likely involve a conflict of interests, as the data protection officer would have to oversee and advise on the data processing activities related to marketing, which may not be compatible with his or her role as a data protection officer 5. Therefore, if the data protection officer also manages the marketing budget, this would infringe Article 38 (6) of the GDPR 4.
According to Article 38 (3) of the GDPR, the data protection officer must not receive any instructions regarding the exercise of his or her tasks 4. The data protection officer must act in an independent manner and perform the tasks assigned by the GDPR, such as informing and advising the controller or the processor and the employees, monitoring compliance, cooperating with the supervisory authority, and acting as the contact point for data subjects and the supervisory authority 6. Therefore, if the data protection officer receives instructions from the data controller, this would infringe Article 38 (3) of the GDPR 4. Reference: 1: Article 37 of the GDPR 2: Guidelines on Data Protection Officers ('DPOs') 3: Article 38 (2) of the GDPR 4: Article 38 of the GDPR 5: Data protection officer (DPO) | European Commission 6: Article 39 of the GDPR
NEW QUESTION # 144
SCENARIO
Please use the following to answer the next question:
You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company's revenue is due to international sales.
The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's questions on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.
When a child asks the toy a question, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's question. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.
In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character's abilities remain intact.
To ensure GDPR compliance, what should be the company's position on the issue of consent?
- A. Consent for data collection is implied through the parent's purchase of the action figure for the child.
- B. Written authorization attesting to the responsible use of children's data would need to be obtained from the supervisory authority.
- C. Parental consent for a child's use of the action figures would have to be obtained before any data could be collected.
- D. The child, as the user of the action figure, can provide consent himself, as long as no information is shared for marketing purposes.
Answer: C
NEW QUESTION # 145
A German data subject was the victim of an embarrassing prank 20 years ago. A newspaper website published an article about the prank at the time, and the article is still available on the newspaper's website.
Unfortunately, the prank is the top search result when a user searches on the victim's name. The data subject requests that SearchCo delist this result. SearchCo agrees, and instructs its technology team to avoid scanning or indexing the article. What else must SearchCo do?
- A. Notify the newspaper that its article it is delisting the article.
- B. Identify other controllers who are processing the same information and inform them of the delisting request.
- C. Fully erase the URL to the content, as opposed to delist which is mainly based on data subject's name.
- D. Prevent the article from being listed in search results no matter what search terms are entered into the search engine.
Answer: A
Explanation:
According to the European Data Protection Law & Practice textbook, page 326, "the CJEU held that the search engine operator is obliged to remove from the list of results displayed following a search made on the basis of a person's name links to web pages, published by third parties and containing information relating to that person, also in a case where that name or information is not erased beforehand or simultaneously from those web pages, and even, as the case may be, when its publication in itself on those pages is lawful." However, the CJEU also stated that "the operator of the search engine as the person responsible for that processing must, at the latest on the occasion of the erasure from its list of results, disclose to the operator of the web page containing that information the fact that that web page will no longer appear in the search engine's results following a search made on the basis of the data subject's name." Therefore, SearchCo must notify the newspaper that it is delisting the article, as part of its obligation to respect the data subject's right to be forgotten. References:
* European Data Protection Law & Practice, page 326
* CJEU Judgment in Case C-131/12 Google Spain SL, Google Inc. v Agencia Espanola de Proteccion de Datos, Mario Costeja Gonzalez, paragraphs 88 and 93
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