Quiz IT certification exam

Question 1

Which aspect of the GDPR will likely have the most impact on the consistent implementation of data protection laws throughout the European Union?

Accepted Answer

That it takes the form of a Regulation as opposed to a Directive

Answer

That it essentially functions as a one-stop shop mechanism

Answer

That it makes notification of large-scale data breaches mandatory

Answer

That it makes appointment of a data protection officer mandatory

Question 2

How is the retention of communications traffic data for law enforcement purposes addressed by European data protection law?

Accepted Answer

The ePrivacy Directive harmonizes EU member states' rules concerning such data retention.

Answer

The ePrivacy Directive allows individual EU member states to engage in such data retention.

Answer

The Data Retention Directive's annulment makes such data retention now permissible.

Answer

The GDPR allows the retention of such data for the prevention, investigation, detection or prosecution of criminal offences only.

Question 3

What type of data lies beyond the scope of the General Data Protection Regulation?

Accepted Answer

Anonymized

Answer

Pseudonymized

Answer

Encrypted

Answer

Masked

Question 4

Under what circumstances would the GDPR apply to personal data that exists in physical form, such as information contained in notebooks or hard copy files?

Accepted Answer

Only where the personal data is handled in a sufficiently structured manner so as to form part of a filing system.

Answer

Only where the personal data is produced as a physical output of specific automated processing activities, such as printing, labelling, or stamping.

Answer

Only where the personal data is to be subjected to specific computerized processing, such as image scanning or optical character recognition.

Answer

Only where the personal data is treated by automated means in some way, such as computerized distribution or filing.

Question 5

SCENARIOPlease 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.Why is this company obligated to comply with the GDPR?

Accepted Answer

The company's products are marketed directly to EU customers.

Answer

The company has offices in the EU.

Answer

The company employs staff in the EU.

Answer

The company's data center is located in a country outside the EU.

Question 6

SCENARIOPlease 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.What presents the BIGGEST potential privacy issue with the company's practices?

Accepted Answer

The information about the data processing involved has not been specified

Answer

The NFC portal can read any data stored in the action figures

Answer

The cloud service provider is in a country that has not been deemed adequate

Answer

The RFID tag in the action figures has the potential for misuse because of the toy's evolving capabilities

Question 7

SCENARIOPlease 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?

Accepted Answer

Parental consent for a child's use of the action figures would have to be obtained before any data could be collected.

Answer

The child, as the user of the action figure, can provide consent himself, as long as no information is shared for marketing purposes.

Answer

Written authorization attesting to the responsible use of children's data would need to be obtained from the supervisory authority.

Answer

Consent for data collection is implied through the parent's purchase of the action figure for the child.

Question 8

SCENARIOPlease use the following to answer the next question:You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company's revenue is due to international sales.The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's Questions: on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.When a child asks the toy a QUESTION, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's QUESTION. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character's abilities remain intact.In light of the requirements of Article 32 of the GDPR (related to the Security of Processing), which practice should the company institute?

Accepted Answer

Encrypt the data in transit over the wireless Bluetooth connection.

Answer

Include dual-factor authentication before each use by a child in order to ensure a minimum amount of security.

Answer

Include three-factor authentication before each use by a child in order to ensure the best level of security possible.

Answer

Insert contractual clauses into the contract between the toy manufacturer and the cloud service provider, since South Africa is outside the European Union.

Question 9

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

Accepted Answer

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

Answer

The payment card number of a Dutch citizen

Answer

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

Answer

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

Question 10

Which of the following would MOST likely trigger the extraterritorial effect of the GDPR, as specified by Article 3?

Accepted Answer

Personal data of EU citizens being processed by a controller or processor based outside the EU.

Answer

The behavior of suspected terrorists being monitored by EU law enforcement bodies.

Answer

The behavior of EU citizens outside the EU being monitored by non-EU law enforcement bodies.

Answer

Personal data of EU residents being processed by a non-EU business that targets EU customers.

Question 11

How does the GDPR now define "processing''?

Accepted Answer

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

Answer

Any act involving the collecting and recording of personal data.

Answer

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

Answer

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

Question 12

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?

Accepted Answer

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

Answer

The controller will be liable to pay an administrative fine

Answer

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

Answer

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

Question 13

According to the GDPR, how is pseudonymous personal data defined?

Accepted Answer

Data that can no longer be attributed to a specific data subject without the use of additional information kept separately.

Answer

Data that can no longer be attributed to a specific data subject, with no possibility of re-identifying the data.

Answer

Data that has been rendered anonymous in such a manner that the data subject is no longer identifiable.

Answer

Data that has been encrypted or is subject to other technical safeguards.

Question 14

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

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 15

According to the E-Commerce Directive 2000/31/EC, where is the place of "establishment" for a company providing services via an Internet website confirmed by the GDPR?

Accepted Answer

Where the decisions about processing are made

Answer

Where the technology supporting the website is located

Answer

Where the website is accessed

Answer

Where the customer's Internet service provider is located

Question 16

SCENARIOPlease 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?

Accepted Answer

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.

Answer

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

Answer

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.

Answer

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.

Question 17

SCENARIOPlease 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.After Louis has exercised his right to restrict the use of his data, under what conditions would Accidentable have grounds for refusing to comply?

Accepted Answer

If Accidentable is entitled to use of the data as an affiliate of Bedrock.

Answer

If Accidentable also uses the data to conduct public health research.

Answer

If the data becomes necessary to defend Accidentable's legal rights.

Answer

If the accuracy of the data is not an aspect that Louis is disputing.

Question 18

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?

Accepted Answer

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.

Answer

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

Answer

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

Answer

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.

Question 19

With the issue of consent, the GDPR allows member states some choice regarding what?

Accepted Answer

The age at which children must be required to obtain parental consent

Answer

The mechanisms through which consent may be communicated

Answer

The circumstances in which silence or inactivity may constitute consent

Answer

The timeframe in which data subjects are allowed to withdraw their consent

Question 20

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

Accepted Answer

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

Answer

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.

Answer

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

Answer

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.

Question 21

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''?

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 22

Tanya is the Data Protection Officer for Curtains Inc., a GDPR data controller. She has recommended that the company encrypt all personal data at rest. Which GDPR principle is she following?

Accepted Answer

Integrity and confidentiality

Answer

Accuracy

Answer

Storage Limitation

Answer

Lawfulness, fairness and transparency

Question 23

A well-known video production company, based in Spain but specializing in documentaries filmed worldwide, has just finished recording several hours of footage featuring senior citizens in the streets of Madrid. Under what condition would the company NOT be required to obtain the consent of everyone whose image they use for their documentary?

Accepted Answer

If the company's status as a documentary provider allows it to claim legitimate interest.

Answer

If obtaining consent is deemed to involve disproportionate effort.

Answer

If obtaining consent is deemed voluntary by local legislation.

Answer

If the company limits the footage to data subjects solely of legal age.

Question 24

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

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 25

What obligation does a data controller or processor have after appointing a data protection officer?

Accepted Answer

To provide resources necessary to carry out the defined tasks of the data protection officer and to maintain his or her expert knowledge.

Answer

To ensure that the data protection officer receives sufficient instructions regarding the exercise of his or her defined tasks.

Answer

To ensure that the data protection officer acts as the sole point of contact for individuals' Questions: about their personal data.

Answer

To submit for approval to the data protection officer a code of conduct to govern organizational practices and demonstrate compliance with data protection principles.

Question 26

SCENARIOPlease 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.For what reason would JaphSoft be considered a controller under the GDPR?

Accepted Answer

It uses personal data to improve its products and services for its client-base through machine learning.

Answer

It determines how long to retain the personal data collected.

Answer

It has been provided access to personal data in the MarketIQ database.

Answer

It makes decisions regarding the technical and organizational measures necessary to protect the personal data.

Question 27

SCENARIOPlease 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?

Accepted Answer

She did not read the privacy notice stating that her personal data would be shared.

Answer

She was not told which controller would be processing her personal data.

Answer

She only viewed the visual representations of the privacy notice Liem provided.

Answer

She has never made any purchases from JaphSoft and has no relationship with the company.

Question 28

SCENARIOPlease 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.JaphSoft's use of pseudonymization is NOT in compliance with the CDPR because?

Accepted Answer

JaphSoft pseudonymized all the data instead of deleting what it no longer needed.

Answer

JaphSoft failed to first anonymize the personal data.

Answer

JaphSoft was in possession of information that could be used to identify data subjects.

Answer

JaphSoft failed to keep personally identifiable information in a separate database.

Question 29

SCENARIOPlease 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.Which of the following BEST describes the relationship between Liem, EcoMick and JaphSoft?

Accepted Answer

Liem and EcoMick are joint controllers because they carry out joint marketing activities.

Answer

Liem is a controller and EcoMick is a processor because Liem provides specific instructions regarding how the marketing campaigns should be rolled out.

Answer

EcoMick and JaphSoft are is a controller and Liem is a processor because EcoMick is sharing its marketing data with Liem for contacts in Europe.

Answer

JaphSoft is the sole processor because it processes personal data on behalf of its clients.

Question 30

SCENARIOPlease 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?

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 31

When is data sharing agreement MOST likely to be needed?

Accepted Answer

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

Answer

When anonymized data is being shared.

Answer

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

Answer

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

Question 32

An employee of company ABCD has just noticed a memory stick containing records of client data, including their names, addresses and full contact details has disappeared. The data on the stick is unencrypted and in clear text. It is uncertain what has happened to the stick at this stage, but it likely was lost during the travel of an employee. What should the company do?

Accepted Answer

Notify as soon as possible the data protection supervisory authority that a data breach may have taken place.

Answer

Launch an investigation and if nothing is found within one month, notify the data protection supervisory authority.

Answer

Invoke the "disproportionate effort" exception under Article 33 to postpone notifying data subjects until more information can be gathered.

Answer

Immediately notify all the customers of the company that their information has been accessed by an unauthorized person.

Question 33

Which of the following does NOT have to be included in the records most processors must maintain in relation to their data processing activities?

Accepted Answer

Details of any data protection impact assessment conducted in relation to any processing activities carried out by the processor on behalf of each controller for which the processor is acting.

Answer

Name and contact details of each controller on behalf of which the processor is acting.

Answer

Categories of processing carried out on behalf of each controller for which the processor is acting.

Answer

Details of transfers of personal data to a third country carried out on behalf of each controller for which the processor is acting.

Question 34

An unforeseen power outage results in company Z's lack of access to customer data for six hours. According to article 32 of the GDPR, this is considered a breach. Based on the WP 29's February, 2018 guidance, company Z should do which of the following?

Accepted Answer

Document the loss of availability to demonstrate accountability

Answer

Notify affected individuals that their data was unavailable for a period of time.

Answer

Notify the supervisory authority about the loss of availability

Answer

Conduct a thorough audit of all security systems

Question 35

In addition to the European Commission, who can adopt standard contractual clauses, assuming that all required conditions are met?

Accepted Answer

National data protection authorities.

Answer

Approved data controllers.

Answer

The Council of the European Union.

Answer

The European Data Protection Supervisor.

Question 36

SCENARIOPlease use the following to answer the next question:Zandelay Fashion ('Zandelay') is a successful international online clothing retailer that employs approximately 650 people at its headquarters based in Dublin, Ireland. Martin is their recently appointed data protection officer, who oversees the company's compliance with the General Data Protection Regulation (GDPR) and other privacy legislation.The company offers both male and female clothing lines across all age demographics, including children. In doing so, the company processes large amounts of information about such customers, including preferences and sensitive financial information such as credit card and bank account numbers.In an aggressive bid to build revenue growth, Jerry, the CEO, tells Martin that the company is launching a new mobile app and loyalty scheme that puts significant emphasis on profiling the company's customers by analyzing their purchases. Martin tells the CEO that: (a) the potential risks of such activities means that Zandelay needs to carry out a data protection impact assessment to assess this new venture and its privacy implications; and (b) where the results of this assessment indicate a high risk in the absence of appropriate protection measures, Zandelay may have to undertake a prior consultation with the Irish Data Protection Commissioner before implementing the app and loyalty scheme.Jerry tells Martin that he is not happy about the prospect of having to directly engage with a supervisory authority and having to disclose details of Zandelay's business plan and associated processing activities.What would MOST effectively assist Zandelay in conducting their data protection impact assessment?

Accepted Answer

Existing DPIA guides published by local supervisory authorities.

Answer

Information about DPIAs found in Articles 38 through 40 of the GDPR.

Answer

Data breach documentation that data controllers are required to maintain.

Answer

Records of processing activities that data controllers are required to maintain.

Question 37

SCENARIOPlease use the following to answer the next question:Zandelay Fashion ('Zandelay') is a successful international online clothing retailer that employs approximately 650 people at its headquarters based in Dublin, Ireland. Martin is their recently appointed data protection officer, who oversees the company's compliance with the General Data Protection Regulation (GDPR) and other privacy legislation.The company offers both male and female clothing lines across all age demographics, including children. In doing so, the company processes large amounts of information about such customers, including preferences and sensitive financial information such as credit card and bank account numbers.In an aggressive bid to build revenue growth, Jerry, the CEO, tells Martin that the company is launching a new mobile app and loyalty scheme that puts significant emphasis on profiling the company's customers by analyzing their purchases. Martin tells the CEO that: (a) the potential risks of such activities means that Zandelay needs to carry out a data protection impact assessment to assess this new venture and its privacy implications; and (b) where the results of this assessment indicate a high risk in the absence of appropriate protection measures. Zandelay may have to undertake a prior consultation with the Irish Data Protection Commissioner before implementing the app and loyalty scheme.Jerry tells Martin that he is not happy about the prospect of having to directly engage with a supervisory authority and having to disclose details of Zandelay's business plan and associated processing activities.What must Zandelay provide to the supervisory authority during the prior consultation?

Accepted Answer

An explanation of the purposes and means of the intended processing.

Answer

An evaluation of the complexity of the intended processing.

Answer

Records showing that customers have explicitly consented to the intended profiling activities.

Answer

Certificates that prove Martin's professional qualities and expert knowledge of data protection law.

Question 38

A company is located in a country NOT considered by the European Union (EU) to have an adequate level of data protection. Which of the following is an obligation of the company if it imports personal data from another organization in the European Economic Area (EEA) under standard contractual clauses?

Accepted Answer

Ensure that local laws do not impede the company from meeting its contractual obligations.

Answer

Submit the contract to its own government authority.

Answer

Ensure that notice is given to and consent is obtained from data subjects.

Answer

Supply any information requested by a data protection authority (DPA) within 30 days.

Question 39

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

Accepted Answer

Switzerland

Answer

Greece

Answer

Norway

Answer

Australia

Question 40

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?

Accepted Answer

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

Answer

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

Answer

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

Answer

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

IAPP CIPP-E Practice Test 2

IAPP CIPP-E Practice Tests