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Jerry the Chief Marketing Officer for a sports apparel and trophy company, sells products to schools and athletic clubs globally Recently the company has decided to invest in a new line of customized sports equipment Jerry plans to email his current customer base to offer them a discount on their first purchase of such equipment. Jerry tells Kate, the Director of Privacy, about his plan. What is the best guidance Kate can provide to Jerry?
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SCENARIO Please use the following to answer the next question: Brady is a computer programmer based in New Zealand who has been running his own business for two years. Brady's business provides a low-cost suite of services to customers throughout the European Economic Area (EEA). The services are targeted towards new and aspiring small business owners. Brady's company, called Brady Box, provides web page design services, a Social Networking Service (SNS) and consulting services that help people manage their own online stores. Unfortunately, Brady has been receiving some complaints. A customer named Anna recently uploaded her plans for a new product onto Brady Box's chat area, which is open to public viewing. Although she realized her mistake two weeks later and removed the document, Anna is holding Brady Box responsible for not noticing the error through regular monitoring of the website. Brady believes he should not be held liable. Another customer, Felipe, was alarmed to discover that his personal information was transferred to a third- party contractor called Hermes Designs and worries that sensitive information regarding his business plans may be misused. Brady does not believe he violated European privacy rules. He provides a privacy notice to all of his customers explicitly stating that personal data may be transferred to specific third parties in fulfillment of a requested service. Felipe says he read the privacy notice but that it was long and complicated Brady continues to insist that Felipe has no need to be concerned, as he can personally vouch for the integrity of Hermes Designs. In fact, Hermes Designs has taken the initiative to create sample customized banner advertisements for customers like Felipe. Brady is happy to provide a link to the example banner ads, now posted on the Hermes Designs webpage. Hermes Designs plans on following up with direct marketing to these customers. Brady was surprised when another customer, Serge, expressed his dismay that a quotation by him is being used within a graphic collage on Brady Box's home webpage. The quotation is attributed to Serge by first and last name. Brady, however, was not worried about any sort of litigation. He wrote back to Serge to let him know that he found the quotation within Brady Box's Social Networking Service (SNS), as Serge himself had posted the quotation. In his response, Brady did offer to remove the quotation as a courtesy. Despite some customer complaints, Brady's business is flourishing. He even supplements his income through online behavioral advertising (OBA) via a third-party ad network with whom he has set clearly defined roles. Brady is pleased that, although some customers are not explicitly aware of the OBA, the advertisements contain useful products and services. Under the General Data Protection Regulation (GDPR), what is the most likely reason Serge may have grounds to object to the use of his quotation?

Question 47 - CIPP-E discussion

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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.

To ensure GDPR compliance, what should be the company's position on the issue of consent?

A.

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

Answers
A.

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

B.

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

Answers
B.

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

C.

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

Answers
C.

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

D.

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

Answers
D.

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

Suggested answer: D

Explanation:

According to Article 8 of the GDPR, where the processing of personal data is based on consent and the offer of an information society service (ISS) is directly made to a child, the processing is lawful only if the child is at least 16 years old, or if the consent is given or authorised by the holder of parental responsibility over the child. The GDPR allows EU member states to lower the age threshold to a minimum of 13 years. The data controller must make reasonable efforts to verify that the consent is given or authorised by the holder of parental responsibility, taking into account available technology. An ISS is any service normally provided for remuneration, at a distance, by electronic means and at the individual request of a recipient of services. Examples of ISS include online marketplaces, social media platforms, and online games.

In this scenario, the company is offering an ISS to children, as the connected toys can talk and interact with children via the internet. The company is also processing personal data of the children, such as their voice, questions, preferences, and location. Therefore, the company must obtain parental consent for the use of the action figures before any data can be collected, unless the child is above the age threshold set by the relevant EU member state. The company must also inform the parents and the children about the nature and purpose of the data processing, the data transfers to South Africa, and the rights of the data subjects. The company must also ensure that the data processing is fair, lawful, transparent, and in accordance with the data protection principles and the children's best interests.

The other options are incorrect because:

A) The child cannot provide consent himself, regardless of the purpose of the data processing, unless he is above the age threshold set by the relevant EU member state. The GDPR does not make any distinction between data processing for marketing or non-marketing purposes when it comes to children's consent.

B) The company does not need to obtain written authorization from the supervisory authority to process children's data, as long as it complies with the GDPR requirements and obtains parental consent. The supervisory authority is the independent public authority responsible for monitoring the application of the GDPR in each EU member state, and it can intervene only in cases of non-compliance or complaints.

C) Consent for data collection cannot be implied through the parent's purchase of the action figure for the child. The GDPR requires that consent must be freely given, specific, informed, and unambiguous, and that it must be expressed by a clear affirmative action. The purchase of a product does not meet these criteria, and it does not indicate the parent's agreement to the data processing. Moreover, the packaging of the toy does not provide sufficient information about the data processing, nor does it mention that an internet connection is required.

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asked 22/11/2024
Silfredo Jimenez Munoz
35 questions
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