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Question 281

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A private company has establishments in France, Poland, the United Kingdom and, most prominently, Germany, where its headquarters is established. The company offers its services worldwide. Most of the services are designed in Germany and supported in the other establishments. However, one of the services, a Software as a Service (SaaS) application, was defined and implemented by the Polish establishment. It is also supported by the other establishments.

What is the lead supervisory authority for the SaaS service?

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Question 282

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All of the following will be established by the second Network and Information Security Directive ('NIS2') EXCEPT?

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Question 283

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How can the relationship between the GDPR and the Digital Services Act, the Data Governance Act and the Digital Markets Act most accurately be described?

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Question 284

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According to the European Data Protection Board, controllers responding to a data subject access request can refuse to provide a copy of personal data under certain conditions. Which of the following is NOT one of these conditions?

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Question 285

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The EDPB's Guidelines 8/2020 on the targeting of social media users stipulates that in order to rely on legitimate interest as a legal basis to process personal data, three tests must be passed. Which of the following is NOT one of the three tests?

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Question 286

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SCENARIO - Please use the following to answer the next question:

It has been a tough season for the Spanish Handball League, with acts of violence and racism having increased exponentially during their last few matches.

In order to address this situation, the Spanish Minister of Sports, in conjunction with the National Handball League Association, issued an Administrative Order (the 'Act') obliging all the professional clubs to install a fingerprint-reading system for accessing some areas of the sports halls, primarily the ones directly behind the goalkeepers. The rest of the areas would retain the current access system, which allows any spectators access as long as they hold valid tickets.

The Act named a selected hardware and software provider, New Digital Finger, Ltd., for the creation of the new fingerprint system. Additionally, it stipulated that any of the professional clubs that failed to install this system within a two-year period would face fines under the Act.

The Murla HB Club was the first to install the new system, renting the New Digital Finger hardware and software. Immediately afterward, the Murla HB Club automatically renewed current supporters' subscriptions, while introducing a new contractual clause requiring supporters to access specific areas of the hall through the new fingerprint reading system installed at the gates.

After the first match hosted by the Murla HB Club, a local supporter submitted a complaint to the club and to the Spanish Data Protection Authority (the AEPD), claiming that the new access system violates EU data protection laws. Having been notified by the AEPD of the upcoming investigation regarding this complaint, the Murla HB Club immediately carried out a Data Protection Impact Assessment (DPIA), the conclusions of which stated that the new access system did not pose any high risks to data subjects' privacy rights.

The Murla HB Club should have carried out a DPIA before the installation of the new access system and at what other time?

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Question 287

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Start-up company MagicAI is developing an AI system that will be part of a medical device that detects skin cancer. To take measures against potential bias in its AI system, the IT Team decides to collect data about users' ethnic origin, nationality, and gender.

Which would be the most appropriate legal basis for this processing under the GDPR, Article 9 (Processing of special categories of personal data)?

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Question 288

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SCENARIO

Please use the following to answer the next question:

Gentle Hedgehog Inc. is a privately owned website design agency incorporated in

Italy. The company has numerous remote workers in different EU countries. Recently, the management of Gentle Hedgehog noticed a decrease in productivity of their sales team, especially among remote workers. As a result, the company plans to implement a robust but privacy-friendly remote surveillance system to prevent absenteeism, reward top performers, and ensure the best quality of customer service when sales people are interacting with customers.

Gentle Hedgehog eventually hires Sauron Eye Inc., a Chinese vendor of employee surveillance software whose European headquarters is in Germany. Sauron Eye's software provides powerful remote-monitoring capabilities, including 24/7 access to computer cameras and microphones, screen captures, emails, website history, and keystrokes. Any device can be remotely monitored from a central server that is securely installed at Gentle Hedgehog headquarters. The monitoring is invisible by default; however, a so-called Transparent Mode, which regularly and conspicuously notifies all users about the monitoring and its precise scope, also exists. Additionally, the monitored employees are required to use a built-in verification technology involving facial recognition each time they log in.

All monitoring data, including the facial recognition data, is securely stored in

Microsoft Azure cloud servers operated by Sauron Eye, which are physically located in France.

Based on the scenario, what are the primary privacy risks of the planned surveillance system?

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Question 289

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SCENARIO

Please use the following to answer the next question:

Gentle Hedgehog Inc. is a privately owned website design agency incorporated in

Italy. The company has numerous remote workers in different EU countries. Recently, the management of Gentle Hedgehog noticed a decrease in productivity of their sales team, especially among remote workers. As a result, the company plans to implement a robust but privacy-friendly remote surveillance system to prevent absenteeism, reward top performers, and ensure the best quality of customer service when sales people are interacting with customers.

Gentle Hedgehog eventually hires Sauron Eye Inc., a Chinese vendor of employee surveillance software whose European headquarters is in Germany. Sauron Eye's software provides powerful remote-monitoring capabilities, including 24/7 access to computer cameras and microphones, screen captures, emails, website history, and keystrokes. Any device can be remotely monitored from a central server that is securely installed at Gentle Hedgehog headquarters. The monitoring is invisible by default; however, a so-called Transparent Mode, which regularly and conspicuously notifies all users about the monitoring and its precise scope, also exists. Additionally, the monitored employees are required to use a built-in verification technology involving facial recognition each time they log in.

All monitoring data, including the facial recognition data, is securely stored in Microsoft Azure cloud servers operated by Sauron Eye, which are physically located in France.

What monitoring may be lawfully performed within the scope of Gentle Hedgehog's business?

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Question 290

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SCENARIO

Please use the following to answer the next question:

Gentle Hedgehog Inc. is a privately owned website design agency incorporated in

Italy. The company has numerous remote workers in different EU countries. Recently, the management of Gentle Hedgehog noticed a decrease in productivity of their sales team, especially among remote workers. As a result, the company plans to implement a robust but privacy-friendly remote surveillance system to prevent absenteeism, reward top performers, and ensure the best quality of customer service when sales people are interacting with customers.

Gentle Hedgehog eventually hires Sauron Eye Inc., a Chinese vendor of employee surveillance software whose European headquarters is in Germany. Sauron Eye's software provides powerful remote-monitoring capabilities, including 24/7 access to computer cameras and microphones, screen captures, emails, website history, and keystrokes. Any device can be remotely monitored from a central server that is securely installed at Gentle Hedgehog headquarters. The monitoring is invisible by default; however, a so-called Transparent Mode, which regularly and conspicuously notifies all users about the monitoring and its precise scope, also exists. Additionally, the monitored employees are required to use a built-in verification technology involving facial recognition each time they log in.

All monitoring data, including the facial recognition data, is securely stored in Microsoft Azure cloud servers operated by Sauron Eye, which are physically located in France.

Under what condition could the surveillance system be used on the personal devices of employees?

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