IAPP CIPP-US Practice Test - Questions Answers, Page 2

List of questions
Question 11

Read this notice:
Our website uses cookies. Cookies allow us to identify the computer or device you're using to access the site, but they don't identify you personally. For instructions on setting your Web browser to refuse cookies, click here.
What type of legal choice does not notice provide?
Mandatory
Implied consent
Opt-in
Opt-out
A cookie is a small piece of data that a website sends to a user's browser and stores on the user's device, usually for the purpose of remembering the user's preferences, settings, or actions1.
A cookie notice is a message that informs the user about the website's use of cookies and the user's choices regarding the acceptance or rejection of cookies2.
A legal choice is the mechanism that the website provides to the user to express their consent or dissent to the use of cookies2.
There are different types of legal choices for cookie notices, depending on the applicable laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union or the California Consumer Privacy Act (CCPA) in the United States34.
The four types of legal choices mentioned in the question are:
Mandatory: The website does not allow the user to access the site unless they accept the use of cookies.This type of choice is generally considered unlawful and non-compliant with the GDPR and the CCPA34.
Implied consent: The website assumes that the user consents to the use of cookies by continuing to browse the site or by dismissing the cookie notice. This type of choice is often used by websites that operate in the U.S.or other jurisdictions that do not have strict cookie laws, but it may not be sufficient for the GDPR or the CCPA34.
Opt-in: The website requires the user to explicitly agree to the use of cookies by clicking a button or checking a box.This type of choice is usually compliant with the GDPR and the CCPA, as it ensures that the user gives informed and affirmative consent34.
Opt-out: The website allows the user to reject the use of cookies by clicking a link or changing their browser settings.This type of choice is also compliant with the GDPR and the CCPA, as it gives the user the right to withdraw their consent at any time34.
Based on the description of the cookie notice in the question, the type of legal choice that the notice provides isimplied consent, as the website does not explicitly ask for the user's agreement, but rather assumes that the user accepts the use of cookies by using the site. The notice also provides a link for the user to opt out of cookies by setting their browser to refuse them.
Question 12

SCENARIO
Please use the following to answer the next QUESTION:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
What is the best reason for Cheryl to follow Janice's suggestion about classifying customer data?
It will help employees stay better organized
It will help the company meet a federal mandate
It will increase the security of customers' personal information (PI)
It will prevent the company from collecting too much personal information (PI)
Data classification systematically categorizes information based on sensitivity and importance to determine its level of confidentiality.This process helps apply appropriate security and compliance measures to ensure each category receives proper protection1.This process also helps to identify which personal data is subject to specific GDPR requirements, such as obtaining explicit consent from data subjects, or notifying data subjects in the event of a data breach2.By classifying data, Cheryl can also make more informed decisions about where to store the information on her computer system and the nature of controls that are required based on classification3. This way, she can protect her customers' privacy while maintaining the highest level of service.Reference:
Data Classification for GDPR Explained
A guide to data classification: confidential data vs. sensitive data vs. public information
Why Is Data Classification Important?
Question 13

SCENARIO
Please use the following to answer the next QUESTION:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
What is the most likely risk of Fitness Coach, Inc. adopting Janice's first draft of the privacy policy?
Leaving the company susceptible to violations by setting unrealistic goals
Failing to meet the needs of customers who are concerned about privacy
Showing a lack of trust in the organization's privacy practices
Not being in standard compliance with applicable laws
Janice's first draft of the privacy policy may be too restrictive and impractical for Fitness Coach, Inc. to follow, given the nature of its business and the expectations of its customers. By limiting the retention of personal information to one year and requiring written consent for any third-party sharing, the policy may create operational challenges and customer dissatisfaction. For example, customers may want to resume their fitness programs after a long hiatus and expect the company to have their previous records and preferences. Similarly, third-party contractors may need access to customer information to provide better services and tailor their classes. If the company fails to adhere to its own privacy policy, it may face legal consequences, reputational damage, and loss of trust from its customers. Therefore, the company should adopt a more realistic and flexible privacy policy that balances its business needs and its customers' privacy rights.Reference:
Privacy Policy for Health Coaches
Privacy Policies for Online Coaches
Privacy Policy - Coaching.com
Question 14

SCENARIO
Please use the following to answer the next QUESTION:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
What is the main problem with Cheryl's suggested method of communicating the new privacy policy?
The policy would not be considered valid if not communicated in full.
The policy might not be implemented consistency across departments.
Employees would not be comfortable with a policy that is put into action over time.
Employees might not understand how the documents relate to the policy as a whole.
Cheryl's suggested method of communicating the new privacy policy by creating documents listing applicable parts of the new policy for each department and implementing it gradually over several months may create confusion and inconsistency among employees and customers. Different departments may have different interpretations and expectations of the policy, and customers may not be aware of the changes or their rights under the policy. This may lead to errors, complaints, and violations of the policy and the applicable laws. A better approach would be to communicate the policy in full to all employees and customers at once, and provide training and guidance on how to comply with it. The policy should also be easily accessible and updated on the company's website and other channels.Reference:
Privacy Policy for Health Coaches
Privacy Policies for Online Coaches
Privacy Policy - Coaching.com
Question 15

SCENARIO
Please use the following to answer the next QUESTION:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
Based on the scenario, which of the following would have helped Janice to better meet the company's needs?
Creating a more comprehensive plan for implementing a new policy
Spending more time understanding the company's information goals
Explaining the importance of transparency in implementing a new policy
Removing the financial burden of the company's employee training program
According to the Wiley study guide, one of the steps in developing a privacy policy is to conduct a privacy assessment, which involves identifying the organization's information goals and needs, as well as the legal and regulatory requirements that apply to its data collection and use practices3. By spending more time understanding the company's information goals, Janice would have been able to tailor the privacy policy to fit the company's business model and customer expectations, while still complying with the relevant privacy laws and standards. This would have also helped Janice to address Cheryl's concerns about the impact of the policy on the company's operations and customer relationships, and to propose solutions that balance privacy protection and service delivery.
1: https://iapp.org/certify/cippus/
2: https://iapp.org/certify/get-certified/cippus/
3: https://www.wiley.com/en-be/IAPP+CIPP+US+Certified+Information+Privacy+Professional+Study+Guide-p-9781119755517
4: https://www.techtarget.com/searchsecurity/quiz/10-CIPP-US-practice-questions-to-test-your-privacy-knowledge
5: https://www.study4exam.com/iapp/free-cipp-us-questions
: https://www.passitcertify.com/iapp/cipp-us-questions.html
Question 16

According to the FTC Report of 2012, what is the main goal of Privacy by Design?
Obtaining consumer consent when collecting sensitive data for certain purposes
Establishing a system of self-regulatory codes for mobile-related services
Incorporating privacy protections throughout the development process
Implementing a system of standardization for privacy notices
Privacy by Design is a concept that the FTC endorsed in its 2012 report on protecting consumer privacy1.It seeks to deliver the maximum degree of privacy by ensuring that personal data are automatically protected in any given IT system or business practice2.It asserts that data held by an organization ultimately belongs to the consumer and organizations should ensure that data subjects are properly informed about how their data is collected and used3.Privacy by Design requires companies to build in consumers' privacy protections at every stage in developing their products, including reasonable security for consumer data, limited collection and retention of such data, and reasonable procedures to promote data accuracy1.Reference:1: FTC Report of 2012, p.22-23;2: Global Data Review3;3: Termly4.
Question 17

What is the main reason some supporters of the European approach to privacy are skeptical about self- regulation of privacy practices?
A large amount of money may have to be sent on improved technology and security
Industries may not be strict enough in the creation and enforcement of rules
A new business owner may not understand the regulations
Human rights may be disregarded for the sake of privacy
The European approach to privacy is based on the recognition of privacy as a fundamental human right that requires strong legal protection and oversight. The EU has adopted comprehensive and binding privacy laws, such as the General Data Protection Regulation (GDPR) and the ePrivacy Directive, that apply to all sectors and activities involving personal data. The EU also has independent data protection authorities (DPAs) that monitor and enforce compliance with the privacy laws, and a European Data Protection Board (EDPB) that issues guidance and opinions on privacy matters. The EU also requires adequate levels of privacy protection for personal data transferred to third countries or international organizations.
In contrast, the U.S. approach to privacy is based on a sectoral and self-regulatory model that relies on a combination of federal and state laws, industry codes of conduct, consumer education, and market forces. The U.S. does not have a single, comprehensive, and enforceable federal privacy law that covers all sectors and activities involving personal data. Instead, the U.S. has a patchwork of federal and state laws that address specific issues or sectors, such as health, financial, children's, and electronic communications privacy. The U.S. also has various federal and state agencies that share jurisdiction over privacy matters, such as the Federal Trade Commission (FTC), the Federal Communications Commission (FCC), and the Department of Health and Human Services (HHS). The U.S. also relies on self-regulation by industries that develop and adhere to voluntary codes of conduct, standards, and best practices for privacy. The U.S. also allows personal data to be transferred to third countries or international organizations without requiring adequate levels of privacy protection, as long as the data subjects have given their consent or the transfer is covered by a mechanism such as the Privacy Shield or the Standard Contractual Clauses.
Some supporters of the European approach to privacy are skeptical about self-regulation of privacy practices because they believe that self-regulation is not effective, consistent, or accountable enough to protect the rights and interests of data subjects. They argue that self-regulation may not provide sufficient incentives or sanctions for industries to comply with privacy rules, or to adopt privacy-enhancing technologies and practices. They also contend that self-regulation may not reflect the views and expectations of data subjects, or address the emerging and complex privacy challenges posed by new technologies and business models. They also question the transparency and legitimacy of self-regulation, and the ability of data subjects to exercise their rights and seek redress for privacy violations.Reference:
IAPP CIPP/US Study Guide, Chapter 1: Introduction to the U.S. Privacy Environment, pp. 9-10, 16-17
IAPP website, CIPP/US Certification
NICCS website, Certified Information Privacy Professional/United States (CIPP/US) Training
Question 18

What is the main purpose of the Global Privacy Enforcement Network?
To promote universal cooperation among privacy authorities
To investigate allegations of privacy violations internationally
To protect the interests of privacy consumer groups worldwide
To arbitrate disputes between countries over jurisdiction for privacy laws
The Global Privacy Enforcement Network (GPEN) is a network for privacy enforcement authorities (PEAs) to share knowledge, experience and best practices on the practical aspects of privacy enforcement and cooperation. GPEN was created in response to the OECD Recommendation on Cross-border Cooperation in the Enforcement of Laws Protecting Privacy, which called for member countries to foster the establishment of an informal network of PEAs. GPEN's main purpose is to facilitate cross-border cooperation and coordination among PEAs, especially in cases involving multiple jurisdictions or regions. GPEN also aims to enhance information sharing, promote awareness and education, and support capacity building among PEAs.Reference:
Home (public) | Global Privacy Enforcement Network
Global Privacy Enforcement Network - International Association of Privacy Professionals
International Partnerships - Office of the Privacy Commissioner of Canada
Specialised networks -- Global Privacy Assembly
Action Plan for the Global Privacy Enforcement Network (GPEN)
[IAPP CIPP/US Certified Information Privacy Professional Study Guide], Chapter 6, page 213.
Question 19

In 2014, Google was alleged to have violated the Family Educational Rights and Privacy Act (FERPA) through its Apps for Education suite of tools. For what specific practice did students sue the company?
Scanning emails sent to and received by students
Making student education records publicly available
Relying on verbal consent for a disclosure of education records
Disclosing education records without obtaining required consent
The lawsuit, filed in 2014, claimed that Google violated the federal and state wiretap and privacy laws by scanning and indexing the emails of millions of students who used its Apps for Education suite, which included Gmail as a key feature12.The plaintiffs alleged that Google used the information from the scans to build profiles of students that could be used for targeted advertising or other commercial purposes, without their consent or knowledge12.The lawsuit also challenged Google's argument that the students consented to the scans when they first logged in to their accounts, saying that such consent was not valid under FERPA, which requires written consent for any disclosure of education records12.Google denied the allegations and argued that the scans were necessary for providing security, spam protection, and other functionality to the users12.The case was settled in 2016, with Google agreeing to change some of its practices and policies regarding the scanning of student emails3.Reference:1: Lawsuit Alleges That Google Has Crossed A 'Creepy Line' With Student Data, Huffington Post,1.2: Google faces lawsuit over email scanning and student data, The Guardian,2.3: Google data case to be heard in Supreme Court, BBC,3.
Question 20

Which venture would be subject to the requirements of Section 5 of the Federal Trade Commission Act?
A local nonprofit charity's fundraiser
An online merchant's free shipping offer
A national bank's no-fee checking promotion
A city bus system's frequent rider program
Section 5 of the Federal Trade Commission Act (FTC Act) prohibits ''unfair or deceptive acts or practices in or affecting commerce.''1This prohibition applies to all persons engaged in commerce, including banks, but also exempts some entities, such as nonprofit organizations and common carriers, from FTC jurisdiction.2Therefore, among the four options, only an online merchant's free shipping offer would be subject to the requirements of Section 5, as it involves a commercial activity that could potentially mislead or harm consumers.For example, if the online merchant fails to disclose the terms and conditions of the offer, or charges hidden fees, or delivers the products late or damaged, it could violate Section 5 by engaging in a deceptive practice.3Reference:1: Section 5 | Federal Trade Commission2: Federal Trade Commission Act Section 5: Unfair or Deceptive Acts or Practices, page 13: IAPP CIPP/US Certified Information Privacy Professional Study Guide, page 23.
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