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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. What presents the BIGGEST potential privacy issue with the company's practices?




SCENARIO Please use the following to answer the next question: Anna and Frank both work at Granchester University. Anna is a lawyer responsible for data protection, while Frank is a lecturer in the engineering department. The University maintains a number of types of records: Student records, including names, student numbers, home addresses, pre-university information, university attendance and performance records, details of special educational needs and financial information. Staff records, including autobiographical materials (such as curricula, professional contact files, student evaluations and other relevant teaching files). Alumni records, including birthplaces, years of birth, dates of matriculation and conferrals of degrees. These records are available to former students after registering through Granchester's Alumni portal. Department for Education records, showing how certain demographic groups (such as first-generation students) could be expected, on average, to progress. These records do not contain names or identification numbers. Under their security policy, the University encrypts all of its personal data records in transit and at rest. In order to improve his teaching, Frank wants to investigate how his engineering students perform in relational to Department for Education expectations. He has attended one of Anna's data protection training courses and knows that he should use no more personal data than necessary to accomplish his goal. He creates a program that will only export some student data: previous schools attended, grades originally obtained, grades currently obtained and first time university attended. He wants to keep the records at the individual student level. Mindful of Anna's training, Frank runs the student numbers through an algorithm to transform them into different reference numbers. He uses the same algorithm on each occasion so that he can update each record over time. One of Anna's tasks is to complete the record of processing activities, as required by the GDPR. After receiving her email reminder, as required by the GDPR. After receiving her email reminder, Frank informs Anna about his performance database. Ann explains to Frank that, as well as minimizing personal data, the University has to check that this new use of existing data is permissible. She also suspects that, under the GDPR, a risk analysis may have to be carried out before the data processing can take place. Anna arranges to discuss this further with Frank after she has done some additional research. Frank wants to be able to work on his analysis in his spare time, so he transfers it to his home laptop (which is not encrypted). Unfortunately, when Frank takes the laptop into the University he loses it on the train. Frank has to see Anna that day to discuss compatible processing. He knows that he needs to report security incidents, so he decides to tell Anna about his lost laptop at the same time. Anna will find that a risk analysis is NOT necessary in this situation as long as?





Question 122 - CIPP-E discussion

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In which scenario is a Controller most likely required to undertake a Data Protection Impact Assessment?

A.

When the controller is collecting email addresses from individuals via an online registration form for marketing purposes.

Answers
A.

When the controller is collecting email addresses from individuals via an online registration form for marketing purposes.

B.

When personal data is being collected and combined with other personal data to profile the creditworthiness of individuals.

Answers
B.

When personal data is being collected and combined with other personal data to profile the creditworthiness of individuals.

C.

When the controller is required to have a Data Protection Officer.

Answers
C.

When the controller is required to have a Data Protection Officer.

D.

When personal data is being transferred outside of the EEA.

Answers
D.

When personal data is being transferred outside of the EEA.

Suggested answer: B

Explanation:

According to the GDPR, a data protection impact assessment (DPIA) is a process to help identify and minimize the data protection risks of a project. A DPIA is required when the processing is likely to result in a high risk to the rights and freedoms of natural persons, taking into account the nature, scope, context and purposes of the processing. The GDPR provides a list of examples of processing operations that require a DPIA, such as:

Systematic and extensive evaluation of personal aspects relating to natural persons which is based on automated processing, including profiling, and on which decisions are based that produce legal effects concerning the natural person or similarly significantly affect the natural person.

Processing on a large scale of special categories of data or of personal data relating to criminal convictions and offences.

Systematic monitoring of a publicly accessible area on a large scale.

Therefore, an example of a scenario where a controller is most likely required to undertake a DPIA is when personal data is being collected and combined with other personal data to profile the creditworthiness of individuals, as this involves a systematic and extensive evaluation of personal aspects based on automated processing and profiling, and may have significant effects on the individuals. The other scenarios are not necessarily indicative of a high risk to the rights and freedoms of natural persons, and do not fall under the examples of processing operations that require a DPIA provided by the GDPR.Reference:Free CIPP/E Study Guide, page 37;CIPP/E Certification, page 18; GDPR, Article 35, Recital 91.

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asked 22/11/2024
Samori Augusto
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