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SCENARIO Please use the following to answer the next question: ProStorage is a multinational cloud storage provider headquartered in the Netherlands. Its CEO. Ruth Brown, has developed a two-pronged strategy for growth: 1) expand ProStorage s global customer base and 2) increase ProStorage's sales force by efficiently onboarding effective teams. Enacting this strategy has recently been complicated by Ruth's health condition, which has limited her working hours, as well as her ability to travel to meet potential customers. ProStorage's Human Resources department and Ruth's Chief of Staff now work together to manage her schedule and ensure that she is able to make all her medical appointments The latter has become especially crucial after Ruth's last trip to India, where she suffered a medical emergency and was hospitalized m New Delhi Unable to reach Ruths family, the hospital reached out to ProStorage and was able to connect with her Chief of Staff, who in coordination with Mary, the head of HR. provided information to the doctors based on accommodate on requests Ruth made when she started a: ProStorage In support of Ruth's strategic goals of hiring more sales representatives, the Human Resources team is focused on improving its processes to ensure that new employees are sourced, interviewed, hired, and onboarded efficiently. To help with this, Mary identified two vendors, HRYourWay, a German based company, and InstaHR, an Australian based company. She decided to have both vendors go through ProStorage's vendor risk review process so she can work with Ruth to make the final decision. As part of the review process, Jackie, who is responsible for maintaining ProStorage's privacy program (including maintaining controller BCRs and conducting vendor risk assessments), reviewed both vendors but completed a transfer impact assessment only for InstaHR. After her review of both boasted a more established privacy program and provided third-party attestations, whereas HRYourWay was a small vendor with minimal data protection operations. Thus, she recommended InstaHR. ProStorage's marketing team also worked to meet the strategic goals of the company by focusing on industries where it needed to grow its market share. To help with this, the team selected as a partner UpFinance, a US based company with deep connections to financial industry customers. During ProStorage's diligence process, Jackie from the privacy team noted in the transfer impact assessment that UpFinance implements several data protection measures including end-to-end encryption, with encryption keys held by the customer. Notably, UpFinance has not received any government requests in its 7 years of business. Still, Jackie recommended that the contract require UpFinance to notify ProStorage if it receives a government request for personal data UpFinance processes on its behalf prior to disclosing such data. What transfer mechanism did ProStorage most likely rely on to transfer Ruth's medical information to the hospital?








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 48 - 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.

In light of the requirements of Article 32 of the GDPR (related to the Security of Processing), which practice should the company institute?

A.

Encrypt the data in transit over the wireless Bluetooth connection.

Answers
A.

Encrypt the data in transit over the wireless Bluetooth connection.

B.

Include dual-factor authentication before each use by a child in order to ensure a minimum amount of security.

Answers
B.

Include dual-factor authentication before each use by a child in order to ensure a minimum amount of security.

C.

Include three-factor authentication before each use by a child in order to ensure the best level of security possible.

Answers
C.

Include three-factor authentication before each use by a child in order to ensure the best level of security possible.

D.

Insert contractual clauses into the contract between the toy manufacturer and the cloud service provider, since South Africa is outside the European Union.

Answers
D.

Insert contractual clauses into the contract between the toy manufacturer and the cloud service provider, since South Africa is outside the European Union.

Suggested answer: A

Explanation:

According to Article 32 of the GDPR, the controller and the processor must implement appropriate technical and organisational measures to ensure a level of security appropriate to the risk of processing personal data, taking into account the state of the art, the costs of implementation, and the nature, scope, context and purposes of processing, as well as the risk of varying likelihood and severity for the rights and freedoms of natural persons. The GDPR also provides some examples of such measures, including the pseudonymisation and encryption of personal data, the ability to ensure the ongoing confidentiality, integrity, availability and resilience of processing systems and services, the ability to restore the availability and access to personal data in a timely manner in the event of a physical or technical incident, and a process for regularly testing, assessing and evaluating the effectiveness of technical and organisational measures for ensuring the security of the processing.

In this scenario, the company is processing personal data of children, such as their voice, questions, preferences, and location, through the connected toys that use a wireless Bluetooth connection to communicate with smartphones, tablets, cloud servers, and other toys. This poses a high risk to the security of the data, as Bluetooth is a short-range wireless technology that can be easily intercepted, hacked, or compromised by malicious actors. Therefore, the company should encrypt the data in transit over the Bluetooth connection, to prevent unauthorized access, disclosure, or alteration of the data. Encryption is a process of transforming data into an unreadable form, using a secret key or algorithm, that can only be reversed by authorized parties who have the corresponding key or algorithm. Encryption can protect the data from being accessed or modified by anyone who does not have the key or algorithm, thus ensuring the confidentiality and integrity of the data.

The other options are incorrect because:

B) Including dual-factor authentication before each use by a child in order to ensure a minimum amount of security is not a sufficient measure to protect the data in transit over the Bluetooth connection. Dual-factor authentication is a process of verifying the identity of a user by requiring two pieces of evidence, such as a password and a code sent to a phone or email. While this may enhance the security of the user's account or device, it does not protect the data that is transmitted over the wireless connection, which can still be intercepted, hacked, or compromised by malicious actors. Moreover, dual-factor authentication may not be suitable or convenient for children, who may not have access to a phone or email, or who may forget their passwords or codes.

C) Including three-factor authentication before each use by a child in order to ensure the best level of security possible is not a necessary or proportionate measure to protect the data in transit over the Bluetooth connection. Three-factor authentication is a process of verifying the identity of a user by requiring three pieces of evidence, such as a password, a code sent to a phone or email, and a biometric feature, such as a fingerprint or a face scan. While this may provide a high level of security for the user's account or device, it does not protect the data that is transmitted over the wireless connection, which can still be intercepted, hacked, or compromised by malicious actors. Furthermore, three-factor authentication may not be appropriate or feasible for children, who may not have access to a phone or email, or who may not have reliable biometric features, or who may find the process too complex or cumbersome.

D) Inserting contractual clauses into the contract between the toy manufacturer and the cloud service provider, since South Africa is outside the European Union, is not a relevant measure to protect the data in transit over the Bluetooth connection. Contractual clauses are legal agreements that specify the obligations and responsibilities of the parties involved in a data transfer, such as the level of data protection, the rights of data subjects, and the remedies for breaches. While contractual clauses may be necessary to ensure the compliance of the data transfer to South Africa, which is a non-EU country that does not have an adequacy decision from the European Commission, they do not address the security of the data that is transmitted over the wireless connection, which can still be intercepted, hacked, or compromised by malicious actors. Moreover, contractual clauses are not a technical or organisational measure, but a legal measure, that falls under a different provision of the GDPR, namely Article 46.

asked 22/11/2024
Avinash Kumar
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