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Since blockchain transactions are classified as pseudonymous, are they considered to be within the material scope of the GDPR or outside of it?
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?
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Question 135 - CIPP-E discussion

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Under the Data Protection Law Enforcement Directive of the EU, a government can carry out covert investigations involving personal data, as long it is set forth by law and constitutes a measure that is both necessary and what?

A.

Prudent.

Answers
A.

Prudent.

B.

Important.

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B.

Important.

C.

Proportionate.

Answers
C.

Proportionate.

D.

DPA-approved.

Answers
D.

DPA-approved.

Suggested answer: C

Explanation:

According to the CIPP/E study guide, the Data Protection Law Enforcement Directive (LED) is a piece of EU legislation that ensures the protection of personal data of individuals involved in criminal proceedings, be it as witnesses, victims or suspects1.The LED applies to the processing of personal data by competent authorities for the purposes of the prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties2.Article 4 of the LED sets out the principles relating to the processing of personal data, which include lawfulness, fairness, purpose limitation, data minimisation, accuracy, storage limitation, integrity and confidentiality3.Article 4 (1) (e) of the LED states that personal data shall be processed lawfully, where processing is necessary for the performance of a task carried out by a competent authority for the purposes of the LED, and where processing is based on Union or Member State law which shall meet an objective of general interest, respect the essence of the right to the protection of personal data and be proportionate to the legitimate aim pursued3.Therefore, a government can carry out covert investigations involving personal data, as long as it is set forth by law and constitutes a measure that is both necessary and proportionate to the objective of general interest, such as the prevention or prosecution of criminal offences.Reference:1: CIPP/E study guide, page 1;Data protection in law enforcement2: CIPP/E study guide, page 2;Art. 2 LED3: CIPP/E study guide, page 3;Art. 4 LED.

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asked 22/11/2024
Richard Fuller
28 questions
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