IAPP CIPP-US Practice Test - Questions Answers

The Cable Communications Policy Act of 1984 (CCPA) is a federal law that regulates the cable television industry and protects the privacy of cable subscribers.One of the provisions of the CCPA is that cable operators must provide their subscribers with an annual notice that clearly and conspicuously informs them of the following information12:

The nature of personally identifiable information collected or to be collected with respect to the subscriber and the nature of the use of such information

The nature, frequency, and purpose of any disclosure of such information, including an identification of the types of persons to whom the disclosure may be made

The period during which such information will be maintained by the cable operator

The times and place at which the subscriber may have access to such information

The limitations provided by the CCPA with respect to the collection and disclosure of information by a cable operator and the right of the subscriber under the CCPA to enforce such limitations

The annual notice must also state that the subscriber has the right to prevent disclosure of personally identifiable information to third parties, except as required by law or court order, and that the subscriber may sue for damages, attorney's fees, and other relief for violations of the CCPA12.

The Wireless Domain Registry is a list of domain names that are used to transmit electronic messages to wireless devices, such as cell phones and pagers. The purpose of the registry is to protect wireless consumers from unwanted commercial electronic mail messages, by identifying the domain names for those who send such messages. Marketers are required to use the registry to avoid sending unsolicited emails to wireless devices, which may incur costs or inconvenience for the recipients.Sending such emails without the express prior authorization of the recipient is a violation of the CAN-SPAM Act of 2003.Reference: https://www.fcc.gov/cgb/policy/domain-name-input

https://www.prnewswire.com/in/news-releases/the-wireless-registry-launches-worlds-first-global-registry-for-wireless-names-240222521.html

According to the HIPAA Security Rule, covered entities are responsible for ensuring that their business associates comply with the security standards and safeguards required by the rule. This includes conducting due diligence to assess the business associate's security capabilities and practices, and monitoring their performance and compliance. Failure to do so may result in a violation of the rule and a penalty by the HHS. In this scenario, HealthCo did not perform due diligence on CloudHealth before entering the contract, and did not conduct audits of CloudHealth's security measures. This is the most significant reason why HHS might impose a penalty on HealthCo, as it indicates a lack of oversight and accountability for the protection of ePHI.Reference:

HIPAA Security Rule

HIPAA Business Associate Contracts

HIPAA Enforcement and Penalties

In order for a court to hear a case, it must have both personal jurisdiction and subject matter jurisdiction. Personal jurisdiction refers to the authority of a court over the parties to a case, while subject matter jurisdiction refers to the authority of a court to hear a particular type of case. For example, a federal court may have subject matter jurisdiction over a case involving a federal law, but it may not have personal jurisdiction over a defendant who has no contacts with the state where the court is located. Similarly, a state court may have personal jurisdiction over a resident of the state, but it may not have subject matter jurisdiction over a case involving a foreign treaty.Reference:[IAPP CIPP/US Study Guide], Chapter 2: Introduction to U.S. Law, p. 25-26;Wex Legal Dictionary, Subject Matter Jurisdiction and Personal Jurisdiction.

The Federal Trade Commission (FTC) is the primary federal agency that regulates advertising and marketing practices in the United States, including those targeting children via the Internet. The FTC enforces the Children's Online Privacy Protection Act (COPPA), which requires operators of websites and online services directed to children under 13 to obtain verifiable parental consent before collecting, using, or disclosing personal information from children. The FTC also enforces the FTC Act, which prohibits unfair or deceptive acts or practices in commerce, such as making false or misleading claims in advertising. The FTC has issued guidelines and reports on various aspects of digital advertising to children, such as sponsored content, influencers, data collection, persuasive design, and behavioral marketing. The FTC also hosts workshops and events to examine the impact of digital advertising on children and their ability to distinguish ads from entertainment.Reference:

FTC website

Digital Advertising to Children

IAPP CIPP/US Study Guide, Chapter 5: Marketing and Privacy, pp. 169-170

According to Section 5 of the FTC Act, self-regulation primarily involves a company's right to adhere to its industry's code of conduct. Self-regulation is a process by which an industry or a group of companies voluntarily adopts and enforces standards or guidelines to protect consumers and promote fair competition. The FTC encourages self-regulation as a way to complement its enforcement efforts and address emerging issues in the marketplace. The FTC also monitors self-regulatory programs and may take action against companies that fail to comply with their own codes of conduct or misrepresent their participation in such programs.Reference:

Federal Trade Commission Act, Section 5 of

Self-Regulation | Federal Trade Commission

[IAPP CIPP/US Certified Information Privacy Professional Study Guide], Chapter 3, page 79

The Federal Trade Commission (FTC) issued its 2012 report, ''Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers''1, which outlined a framework for privacy protection based on three main principles: privacy by design, simplified consumer choice, and greater transparency. The report also identified five priority areas for the FTC's privacy enforcement and policy efforts, which were:

Data brokers

Large platform providers

Mobile

Promoting enforceable self-regulatory codes

International data transfers

Do Not Track was not one of the five priority areas, but rather a specific mechanism for implementing the principle of simplified consumer choice.The report endorsed the development of a Do Not Track system that would allow consumers to opt out of online behavioral advertising across websites and platforms1.The report also noted the progress made by various stakeholders, such as the World Wide Web Consortium (W3C), the Digital Advertising Alliance (DAA), and browser companies, in advancing the Do Not Track initiative1.Reference:1: Federal Trade Commission, Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers (March 2012), available at1.

The Consumer Privacy Bill of Rights is a set of principles that the Obama administration proposed in 2012 to guide the development of privacy legislation and policies in the United States.The report that introduced the bill of rights stated that it was 'generally based on the widely accepted Fair Information Practice Principles (FIPPs)'1, which are a set of standards that originated in the 1970s and have influenced many privacy laws and frameworks around the world.The FIPPs include concepts such as individual control, transparency, security, accountability, and data minimization2.The Consumer Privacy Bill of Rights adapted and expanded these principles to address the challenges and opportunities of the digital economy1.Reference:1: Consumer Data Privacy in a Networked World: A Framework for Protecting Privacy and Promoting Innovation in the Global Digital Economy2, page 92: IAPP CIPP/US Certified Information Privacy Professional Study Guide3, page 17.

A consent decree is a legal document that resolves a dispute between a governmental agency and an adverse party without admission of guilt or liability by either side. It is approved by a judge and has the force of a court order. A consent decree may include terms such as compliance, monitoring, reporting, or remediation. A consent decree is often used to settle civil enforcement actions brought by federal agencies such as the Federal Trade Commission (FTC), the Environmental Protection Agency (EPA), or the Department of Justice (DOJ).Reference:

IAPP Glossary, entry for ''consent decree''

[IAPP CIPP/US Study Guide], p. 39, section 2.1.3

[IAPP CIPP/US Body of Knowledge], p. 9, section B.1.a