[Aug 29, 2022] Latest Certified Information Privacy Professional CIPP-C Actual Free Exam Questions
Certified Information Privacy Professional CIPP-C Dumps Updated Practice Test and 151 unique questions
What is the purpose of the IAPP CIPP-C Certification Exam?
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NEW QUESTION 22
SCENARIO
Please use the following to answer the next QUESTION:
A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer's data handling practices.
The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal dat a. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: "Please act immediately by identifying all personal data received from our company." This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup's rapid market penetration.
As the Company's data privacy leader, you are sensitive to the criticality of the relationship with the retailer.
Upon review, the data privacy leader discovers that the Company's documented data inventory is obsolete. What is the data privacy leader's next best source of information to aid the investigation?
- A. Database schemas held by the retailer
- B. Interviews with key marketing personnel
- C. Reports on recent purchase histories
- D. Lists of all customers, sorted by country
Answer: D
NEW QUESTION 23
Which of the following types of information would an organization generally NOT be required to disclose to law enforcement?
- A. Personal health information under the HIPAA Privacy Rule
- B. Information about workspace injuries under OSHA requirements
- C. Information about medication errors under the Food, Drug and Cosmetic Act
- D. Money laundering information under the Bank Secrecy Act of 1970
Answer: A
NEW QUESTION 24
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"?
- A. It indicates the degree of flexibility a controller has in using personal data in ways that may vary from its original intended purpose.
- 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 dictates the level of security a processor must follow when using and storing personal data for two different purposes.
Answer: D
NEW QUESTION 25
Which of the following is NOT a role of works councils?
- A. Determining the monetary fines to be levied against employers for data breach violations of employee data.
- B. Determining whether employees' personal data can be processed or not.
- C. Determining whether to approve or reject certain decisions of the employer that affect employees.
- D. Determining what changes will affect employee working conditions.
Answer: B
NEW QUESTION 26
What does the Massachusetts Personal Information Security Regulation require as it relates to encryption of personal information?
- A. The encryption of all personal information of Massachusetts residents when stored on portable devices.
- B. The encryption of all personal information of Massachusetts residents when all equipment is located in Massachusetts.
- C. The encryption of personal information stored in Massachusetts-based companies when stored on portable devices.
- D. The encryption of all personal information stored in Massachusetts-based companies when all equipment is located in Massachusetts.
Answer: A
NEW QUESTION 27
Which of the following became the first state to pass a law specifically regulating the collection of biometric data?
- A. Washington.
- B. California.
- C. Texas.
- D. Illinois.
Answer: D
NEW QUESTION 28
Which was NOT one of the five priority areas listed by the Federal Trade Commission in its 2012 report, "Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers"?
- A. International data transfers
- B. Large platform providers
- C. Do Not Track
- D. Promoting enforceable self-regulatory codes
Answer: A
NEW QUESTION 29
SCENARIO
Please use the following to answer the next question:
Building Block Inc. is a multinational company, headquartered in Chicago with offices throughout the United States, Asia, and Europe (including Germany, Italy, France and Portugal). Last year the company was the victim of a phishing attack that resulted in a significant data breach. The executive board, in coordination with the general manager, their Privacy Office and the Information Security team, resolved to adopt additional security measures. These included training awareness programs, a cybersecurity audit, and use of a new software tool called SecurityScan, which scans employees' computers to see if they have software that is no longer being supported by a vendor and therefore not getting security updates. However, this software also provides other features, including the monitoring of employees' computers.
Since these measures would potentially impact employees, Building Block's Privacy Office decided to issue a general notice to all employees indicating that the company will implement a series of initiatives to enhance information security and prevent future data breaches.
After the implementation of these measures, server performance decreased. The general manager instructed the Security team on how to use SecurityScan to monitor employees' computers activity and their location.
During these activities, the Information Security team discovered that one employee from Italy was daily connecting to a video library of movies, and another one from Germany worked remotely without authorization. The Security team reported these incidents to the Privacy Office and the general manager. In their report, the team concluded that the employee from Italy was the reason why the server performance decreased.
Due to the seriousness of these infringements, the company decided to apply disciplinary measures to both employees, since the security and privacy policy of the company prohibited employees from installing software on the company's computers, and from working remotely without authorization.
What would be the MOST APPROPRIATE way for Building Block to handle the situation with the employee from Italy?
- A. Since the employee was 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.
- B. Since the GDPR does not apply to this situation, the company would be entitled to apply any disciplinary measure authorized under Italian labor law.
- C. Since 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.
- 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.
Answer: D
NEW QUESTION 30
Which of the following laws is NOT involved in the regulation of employee background checks?
- A. The Gramm-Leach-Bliley Act (GLBA).
- B. The U.S. Fair Credit Reporting Act (FCRA).
- C. The Civil Rights Act.
- D. The California Investigative Consumer Reporting Agencies Act (ICRAA).
Answer: A
NEW QUESTION 31
Which of the following best describes private-sector workplace monitoring in the United States?
- A. Employers have broad authority to monitor their employees
- B. U.S. federal law restricts monitoring only to industries for which it is necessary
- C. Most employees are protected from workplace monitoring by the U.S. Constitution
- D. Judgments in private lawsuits have severely limited the monitoring of employees
Answer: A
NEW QUESTION 32
A company in France suffers a robbery over the weekend owing to a faulty alarm system. When it is determined that the break-in involves the loss of a substantial amount of data, the company decides on a CCTV system to monitor for future incidents. Company technicians install cameras in the entrance of the building, hallways and offices. Footage is recorded continuously, and is monitored by the home office in the United States. What is the most realistic step the company could take to address their security concerns and comply with the personal data processing principles set out in Article 5 of the GDPR?
- A. Restrict camera placement to building entrances only.
- B. Have cameras recording during work hours only.
- C. Seek informed consent from company employees.
- D. Retain captured footage for no more than 30 days.
Answer: C
NEW QUESTION 33
U.S. federal laws protect individuals from employment discrimination based on all of the following EXCEPT?
- A. Pregnancy.
- B. Marital status.
- C. Age.
- D. Genetic information.
Answer: A
NEW QUESTION 34
What is the key difference between the European Council and the Council of the European Union?
- A. The Council of the European Union is helmed by a president.
- B. The European Council is comprised of the heads of each EU member state.
- C. The Council of the European Union has a degree of legislative power.
- D. The European Council focuses primarily on issues involving human rights.
Answer: B
NEW QUESTION 35
Federal laws establish which of the following requirements for collecting personal information of minors under the age of 13?
- A. Implied consent from a minor's parent or guardian before collecting a minor's personal information online, such as when they permit the minor to use the internet.
- B. Implied consent from a minor's parent or guardian, or affirmative consent from the minor.
- C. Affirmative consent from a minor's parent or guardian before collecting the minor's personal information online.
- D. Affirmative consent of a parent or guardian before collecting personal information of a minor offline (e.g., in person), which also satisfies any requirements for online consent.
Answer: C
NEW QUESTION 36
A U.S.-based online shop uses sophisticated software to track the browsing behavior of its European customers and predict future purchases. It also shares this information with third parties. Under the GDPR, what is the online shop's PRIMARY obligation while engaging in this kind of profiling?
- A. It must be able to demonstrate a prior business relationship with the customers
- B. It must prove that it uses sufficient security safeguards to protect customer data
- C. It must seek authorization from the European supervisory authorities
- D. It must solicit informed consent through a notice on its website
Answer: D
NEW QUESTION 37
Under the Fair and Accurate Credit Transactions Act (FACTA), what is the most appropriate action for a car dealer holding a paper folder of customer credit reports?
- A. To follow the Privacy Rule by notifying customers that the reports are being stored
- B. To follow the Red Flags Rule by mailing the reports to customers
- C. To follow the Disposal Rule by having the reports shredded
- D. To follow the Safeguards Rule by transferring the reports to a secure electronic file
Answer: A
NEW QUESTION 38
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.
To comply with the GDPR, what should Building Block have done as a first step before implementing the SecurityScan measure?
- A. Consulted with the relevant data protection authority about potential privacy violations.
- B. Consulted with the Information Security team to weigh security measures against possible server impacts.
- C. Distributed a more comprehensive notice to employees and received their express consent.
- D. Assessed potential privacy risks by conducting a data protection impact assessment.
Answer: C
NEW QUESTION 39
Which of the following demonstrates compliance with the accountability principle found in Article 5, Section
2 of the GDPR?
- A. Conducting regular audits of the data protection program.
- B. Getting consent from the data subject for a cross border data transfer.
- C. Anonymizing special categories of data.
- D. Encrypting data in transit and at rest using strong encryption algorithms.
Answer: A
NEW QUESTION 40
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 only viewed the visual representations of the privacy notice Liem provided.
- B. She did not read the privacy notice stating that her personal data would be shared.
- C. She has never made any purchases from JaphSoft and has no relationship with the company.
- D. She was not told which controller would be processing her personal data.
Answer: B
NEW QUESTION 41
California's SB 1386 was the first law of its type in the United States to do what?
- A. Require state attorney general enforcement of federal regulations against unfair and deceptive trade practices
- B. Require notification of non-California residents of a breach that occurred in California
- C. Require encryption of sensitive information stored on servers that are Internet connected
- D. Require commercial entities to disclose a security data breach concerning personal information about the state's residents
Answer: D
NEW QUESTION 42
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?
- 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 efficient means of providing written consent in member states where they are required to do so.
- D. An explanation of the security measures used when personal data is transferred to a third party.
Answer: A
NEW QUESTION 43
Which statement is FALSE regarding the provisions of the Employee Polygraph Protection Act of 1988 (EPPA)?
- A. Employers involved in the manufacture of controlled substances may terminate employees based on polygraph results if other evidence exists.
- B. Employers are prohibited from administering psychological testing based on personality traits such as honesty, preferences or habits.
- C. The EPPA includes an exception that allows polygraph tests in professions in which employee honesty is necessary for public safety.
- D. The EPPA requires that employers post essential information about the Act in a conspicuous location.
Answer: B
Explanation:
Section: (none)
NEW QUESTION 44
In what way does the "Red Flags Rule" under the Fair and Accurate Credit Transactions Act (FACTA) relate to the owner of a grocery store who uses a money wire service?
- A. it is not usually enforced in the case of a small financial institution
- B. it mandates the use of updated technology for securing credit records
- C. it does not apply because the owner is not a creditor
- D. it requires the owner to implement an identity theft warning system
Answer: B
NEW QUESTION 45
In addition to the European Commission, who can adopt standard contractual clauses, assuming that all required conditions are met?
- A. National data protection authorities.
- B. Approved data controllers.
- C. The European Data Protection Supervisor.
- D. The Council of the European Union.
Answer: B
NEW QUESTION 46
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