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James Walker James Walker

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IAPP Certified Information Privacy Professional/Europe (CIPP/E) Sample Questions (Q18-Q23):

NEW QUESTION # 18
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. Law enforcement
B. Company X
C. The public
D. The supervisory authority

Answer: A

NEW QUESTION # 19
An organisation receives a request multiple times from a data subject seeking to exercise his rights with respect to his own personal dat a. Under what condition can the organisation charge the data subject for processing the request?

A. Only to the extent this is allowed under the restrictions on data subjects' rights introduced under Art 23 of GDPR.
B. Only where the organisation can show that it is reasonable to do so because more than one request was made.
C. Only if the organisation can demonstrate that the request is clearly excessive or misguided.
D. Only where the administrative costs of taking the action requested exceeds a certain threshold.

Answer: C

NEW QUESTION # 20
What was the aim of the European Data Protection Directive 95/46/EC?

A. To implement the OECD Guidelines on the Protection of Privacy and trans-border flows of Personal Data.
B. To harmonize the implementation of the European Convention of Human Rights across all member states.
C. To completely prevent the transfer of personal data out of the European Union.
D. To further reconcile the protection of the fundamental rights of individuals with the free flow of data from one member state to another.

Answer: D

Explanation:
The aim of the European Data Protection Directive 95/46/EC was to establish a common legal framework for the protection of personal data within the European Union, and to ensure the free movement of such data within the internal market. The Directive was based on the recognition that the processing of personal data affects the fundamental rights and freedoms of individuals, especially their right to privacy, and that these rights need to be respected and safeguarded. At the same time, the Directive acknowledged that the free flow of personal data is essential for the economic and social development of the EU, and that the harmonization of data protection laws would facilitate the exchange of information and the provision of services across the member states. Therefore, the Directive aimed to strike a balance between the protection of individuals' rights and the promotion of the internal market, by laying down the key principles, obligations and rights for the processing of personal data, and by providing mechanisms for cooperation and coordination among the national data protection authorities. Reference: Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, Data Protection Directive - Wikipedia

NEW QUESTION # 21
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?

A. The data is sensitive.
B. The data is being used for a new purpose.
C. The data is being processed via a new means.
D. The data is uncategorized.

Answer: B

Explanation:
According to the GDPR, personal data must be collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes1. This means that data controllers must inform data subjects about the purposes of data processing and obtain their consent or rely on another lawful basis for processing. Data controllers must also respect the principle of data minimisation, which means that they should only collect and process personal data that is adequate, relevant and limited to what is necessary for the purposes for which they are processed2.
In the scenario, Brady transfers his customers' personal data to Hermes Designs, a third-party contractor, for the purpose of providing web page design services. However, Hermes Designs uses the data for a new purpose, which is creating sample customized banner advertisements and conducting direct marketing to the customers. This new purpose is not compatible with the original purpose for which the data was collected and transferred, and it is not likely that the customers have consented to it or that there is another lawful basis for it. Moreover, Hermes Designs may be processing more personal data than what is necessary for the original purpose, such as the customers' business plans and preferences. Therefore, Brady should be concerned with Hermes Designs' handling of customer personal data, as it may violate the GDPR and expose him to legal risks and reputational damages.
Reference:
1: Art. 5(1)(b) GDPR Principles relating to processing of personal data
2: Art. 5(1) GDPR Principles relating to processing of personal data

NEW QUESTION # 22
According to Article 84 of the GDPR, the rules on penalties applicable to infringements shall be laid down by?

A. The local Data Protection Supervisory Authorities.
B. The EU Commission.
C. The European Data Protection Board.
D. The Member States.

Answer: D

Explanation:
Reference:
According to Article 84 of the GDPR, the rules on other penalties applicable to infringements of the GDPR, in particular for infringements which are not subject to administrative fines pursuant to Article 83, shall be laid down by the Member States1. Such penalties shall be effective, proportionate and dissuasive1. Each Member State shall notify to the Commission the provisions of its law which it adopts pursuant to paragraph 1, by 25 May 2018 and, without delay, any subsequent amendment affecting them1. Reference: 1: Art. 84 GDPR - Penalties - General Data Protection Regulation (GDPR)

NEW QUESTION # 23
......

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James Walker James Walker

Biography

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