IAPP CIPP-US Practice Test - Questions Answers, Page 14

Data breach notification laws in the United States vary by state and territory, and there is no comprehensive federal law that applies to all types of personal information. Some federal laws, such as HIPAA, GLBA, and the FDIC rule, impose data breach notification requirements for specific industries or sectors, but they do not cover all types of personal information or all entities that collect, store, or process such information. Therefore, the only obligations to provide data breach notification for the breach of personal information are under state law, unless a specific federal law applies to the entity or the information involved. The other statements are incorrect because:

A . You do not have to notify the FTC in addition to affected individuals if over 500 individuals are receiving notice, unless you are a health care entity subject to HIPAA, in which case you have to notify the Department of Health and Human Services (HHS) within 60 days of the breach.

B . When providing an individual with required notice of a data breach, you do not have to identify what personal information was actually or likely compromised, unless the state law requires you to do so. Some states, such as California, require the notice to include the types of personal information that were or are reasonably believed to have been the subject of the breach, while others, such as Alabama, do not specify the content of the notice.

C . When you are required to provide an individual with notice of a data breach under any state's law, you do not have to provide the individual with an offer for free credit monitoring, unless the state law requires you to do so. Some states, such as Connecticut, require the offer of appropriate identity theft prevention and mitigation services for at least 12 months, while others, such as Arizona, do not impose such a requirement.Reference:Data Breach Notification in the United States and Territories,Data Breach Notification Laws in the United States: What is Required and How is that Determined?,US State Data Breach Notification Law Matrix,Breach Notification in United States,Data Breach Notification Laws: How to Manufacture a Confident Response

The Fair Credit Reporting Act (FCRA) was originally intended to provide consumers with the ability to correct inaccurate credit information that could affect their access to credit, employment, insurance, and other benefits. The FCRA gives consumers the right to access their credit reports from the three major credit reporting agencies (Equifax, Experian, and TransUnion) for free once every 12 months, and to dispute any errors or inaccuracies with the credit reporting agencies or the information furnishers (such as lenders, creditors, or debt collectors). The FCRA also requires the credit reporting agencies and the information furnishers to investigate and resolve the disputes within 30 days, and to delete or correct any information that is found to be inaccurate, incomplete, or outdated. The FCRA also provides consumers with the right to place fraud alerts or security freezes on their credit reports if they are victims or potential victims of identity theft, and to receive notifications from users of their credit reports (such as employers or insurers) if any adverse action is taken based on their credit information.Reference:

Fair Credit Reporting Act - Wikipedia

What is the Fair Credit Reporting Act (FCRA)? | Money

The Fair Credit Reporting Act of 1970 - The Balance

How the Fair Credit Reporting Act (FCRA) Protects Consumer Rights

Under the California Consumer Privacy Act (CCPA), a business that collects personal information of California residents must notify them of a data breach if their personal information is subject to unauthorized access and exfiltration, theft, or disclosure as a result of the business's violation of the duty to implement and maintain reasonable security procedures and practices. However, the CCPA excludes encrypted or redacted personal information from the definition of personal information, unless the encryption key or security credential is also compromised. Therefore, Privacy Is Hiring Inc. would need to notify the affected individuals only if the encryption keys were also taken along with the credit card information, as this would render the encryption ineffective and expose the personal information to unauthorized access. The other options are not relevant to the CCPA notification requirement, although they may be relevant to other laws or best practices.Reference:CCPA(Section 1798.150),IAPP CIPP/US Study Guide(p. 63-64)

The Dodd-Frank Act was established to prevent the risky financial practices that led to the 2007--2008 financial crisis, which included issues similar to Noah's experience with buying stocks without understanding the risks.The act includes provisions for consumer protection in financial services and aims to prevent abusive practices in the financial industry

More than half of U.S. states require telemarketers to register with the state before conducting telemarketing activities. These registration requirements are part of state-level consumer protection laws aimed at regulating telemarketing practices to prevent fraud and abusive practices.

Why State Registration is Required:

Telemarketing registration requirements allow states to monitor and regulate telemarketers operating within their jurisdiction.

Registration ensures that telemarketers comply with state-specific rules, such as 'Do Not Call' list regulations or prohibitions on deceptive practices.

States like Florida, New York, and California are examples of jurisdictions with telemarketing registration laws.

Explanation of Options:

A. Identify themselves at the beginning of a call: This is a requirement under the Federal Trade Commission's (FTC) Telemarketing Sales Rule (TSR), but it is not unique to state requirements.

B. Obtain written consent from potential customers: While obtaining consent may be required in specific situations (e.g., under the Telephone Consumer Protection Act - TCPA for autodialed calls), it is not the most common state-level requirement.

C. Register with the state before conducting business: This is correct. Registration with the state is one of the most common requirements for telemarketers under state laws.

D. Provide written contracts for customer transactions: Written contracts are not universally required for telemarketing; this depends on the type of product or service being sold.

Reference from CIPP/US Materials:

FTC Telemarketing Sales Rule (TSR): Covers general telemarketing rules but acknowledges additional state-specific requirements, such as registration.

State Telemarketing Laws: Examples include Florida's Telemarketing Act, which requires state registration.

In the U.S., it is a best practice and, in some states, a requirement to conduct a data protection impact assessment (DPIA) or similar evaluation when technology is used to monitor employees. This practice aligns with privacy principles aimed at ensuring that monitoring practices are proportionate, necessary, and lawful, while minimizing potential harm to employees' privacy.

Why Conduct a DPIA When Monitoring Employees?

Employee Privacy Risks: Monitoring technologies, such as video surveillance, keystroke logging, or location tracking, can significantly impact employees' privacy. Assessments help evaluate these risks and ensure compliance with applicable privacy laws.

State-Specific Requirements: Some states, like California under the California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA), require businesses to implement privacy safeguards, including assessments for high-risk activities involving sensitive data.

Best Practices: Even when not legally required, conducting a DPIA demonstrates accountability and helps mitigate risks associated with employee privacy violations.

Explanation of Options:

A. When a background check is used as part of the hiring process: While background checks involve sensitive data and compliance with laws like the Fair Credit Reporting Act (FCRA), a DPIA is not typically required for this process. Instead, consent and notice are emphasized.

B. When any information is processed by a corporation: This is too broad. DPIAs are generally reserved for high-risk activities involving sensitive data or technologies, not for all data processing activities.

C. When trade secrets are shared with a third party: Sharing trade secrets involves contractual and confidentiality measures, but it does not usually necessitate a data protection assessment unless personal data is also involved.

D. When technology is used to monitor employees: This is correct. Monitoring employees with technology poses significant privacy risks, making it a best practice (and sometimes a requirement) to assess the impacts on privacy and ensure compliance with state and federal laws.

Reference from CIPP/US Materials:

California Privacy Rights Act (CPRA): Introduces risk assessments for certain data processing activities.

IAPP CIPP/US Certification Textbook: Discusses privacy risks associated with employee monitoring and the importance of impact assessments.

A cure provision in state data privacy laws gives businesses an opportunity to remediate violations of the law within a specified timeframe after receiving notice of the alleged violation. This provision is intended to promote compliance rather than immediately imposing penalties or enforcement actions.

Key Aspects of Cure Provisions:

Notice and Cure Period:

Businesses are given a timeframe (e.g., 30 days) to address the alleged violation before formal enforcement actions are taken by state authorities.

Encouraging Compliance:

Cure provisions incentivize businesses to implement corrective actions and ensure compliance without incurring fines or penalties for minor or first-time violations.

State-Specific Examples:

The California Consumer Privacy Act (CCPA) initially included a 30-day cure provision, though it was later limited under the California Privacy Rights Act (CPRA).

Other state laws, such as Virginia's Consumer Data Protection Act (VCDPA), also include cure provisions.

Explanation of Options:

A. To allow a business a limited timeframe to fix alleged violations before facing enforcement: This is correct. Cure provisions are specifically designed to give businesses an opportunity to address violations before facing enforcement actions.

B. To allow consumers a period of time to discover their data has been mishandled: This describes consumer rights related to data breach notifications, not cure provisions.

C. To allow a state to initiate formal enforcement actions for a fixed time period: Cure provisions delay enforcement actions rather than initiate them.

D. To allow certain provisions of a law to expire after a defined time period: This describes sunset provisions, not cure provisions.

Reference from CIPP/US Materials:

CCPA and CPRA: Discuss the cure provisions and their role in enforcement.

IAPP CIPP/US Certification Textbook: Highlights the purpose and impact of cure provisions in state privacy laws.

The Department of Commerce (DOC) plays a role in privacy policy by promoting the development and adoption of voluntary codes of conduct, standards, and best practices for the private sector, as well as facilitating cross-border data transfers through mechanisms such as the EU-U.S. Privacy Shield and the APEC Cross-Border Privacy Rules. However, the DOC does not have regulatory authority to enforce privacy laws or impose sanctions for privacy violations. The other agencies listed have some degree of regulatory authority over privacy issues within their respective domains. For example, the Office of the Comptroller of the Currency (OCC) supervises national banks and federal savings associations and enforces the GLBA privacy and security rules for these institutions. The Federal Communications Commission (FCC) regulates interstate and international communications and enforces the privacy and security rules for telecommunications carriers, broadband providers, and voice over internet protocol (VoIP) services. The Department of Transportation (DOT) oversees the transportation sector and enforces the privacy and security rules for airlines, travel agents, and other covered entities under the Aviation and Transportation Security Act (ATSA).Reference:

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1: Introduction to the U.S. Privacy Environment, Section 1.3: Federal Agencies with a Role in Privacy, p. 18-19

IAPP CIPP/US Body of Knowledge, Domain I: Introduction to the U.S. Privacy Environment, Objective I.B: Identify the major federal agencies with a role in privacy, Subobjective I.B.4: Identify the role of the Department of Commerce, p. 7

IAPP CIPP/US Exam Blueprint, Domain I: Introduction to the U.S. Privacy Environment, Objective I.B: Identify the major federal agencies with a role in privacy, Subobjective I.B.4: Identify the role of the Department of Commerce, p. 3

The Department of Commerce (DOC) plays a role in privacy policy by promoting the development and adoption of voluntary codes of conduct, standards, and best practices for the private sector, as well as facilitating cross-border data transfers through mechanisms such as the EU-U.S. Privacy Shield and the APEC Cross-Border Privacy Rules. However, the DOC does not have regulatory authority to enforce privacy laws or impose sanctions for privacy violations. The other agencies listed have some degree of regulatory authority over privacy issues within their respective domains. For example, the Office of the Comptroller of the Currency (OCC) supervises national banks and federal savings associations and enforces the GLBA privacy and security rules for these institutions. The Federal Communications Commission (FCC) regulates interstate and international communications and enforces the privacy and security rules for telecommunications carriers, broadband providers, and voice over internet protocol (VoIP) services. The Department of Transportation (DOT) oversees the transportation sector and enforces the privacy and security rules for airlines, travel agents, and other covered entities under the Aviation and Transportation Security Act (ATSA).Reference:

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1: Introduction to the U.S. Privacy Environment, Section 1.3: Federal Agencies with a Role in Privacy, p. 18-19

IAPP CIPP/US Body of Knowledge, Domain I: Introduction to the U.S. Privacy Environment, Objective I.B: Identify the major federal agencies with a role in privacy, Subobjective I.B.4: Identify the role of the Department of Commerce, p. 7

IAPP CIPP/US Exam Blueprint, Domain I: Introduction to the U.S. Privacy Environment, Objective I.B: Identify the major federal agencies with a role in privacy, Subobjective I.B.4: Identify the role of the Department of Commerce, p. 3