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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 264 - CIPP-E discussion

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SCENARIO

Please use the following to answer the next question:

Jane starts her new role as a Data Protection Officer (DPO) at a Malta-based company that allows anyone to buy and sell cryptocurrencies via its online platform.

The company stores and processes the personal data of its customers in a dedicated data center located in Malta (EU).

People wishing to trade cryptocurrencies are required to open an online account on the platform. They then must successfully pass a Know Your Customer (KYC) due diligence procedure aimed at preventing money laundering and ensuring compliance with applicable financial regulations.

The non-European customers are also required to waive all their GDPR rights by reading a disclaimer written in bold and ticking a checkbox on a separate page in order to get their account approved on the platform.

All customers must likewise accept the terms of service of the platform. The terms of service also include a privacy policy section, saying, among other things, that if a customer fails the KYC process, its KYC data will be automatically shared with the national anti-money laundering agency.

The KYC procedure requires customers to answer many questions, including whether they have any criminal convictions, whether they use recreational drugs or have problems with alcohol, and whether they have a terminal illness. While providing this data, customers see a conspicuous message saying that this data is meant only to prevent fraud and account takeover, and will be never shared with private third parties.

The company regularly conducts external security testing of its online systems by independent cybersecurity companies from the EU. At the final stage of testing, the company provides cybersecurity assessors with access to its central database to review security permissions, roles and policies. Personal data in the database is encrypted; however, cybersecurity assessors usually have access to the decryption keys obtained while running initial security testing. The assessors must strictly follow the guidelines imposed by the company during the entire testing and auditing process.

All customer data, including trading activities and all internal communications with technical support, are permanently stored in a secured AWS S3 Glacier cloud data storage, located in Ireland, for backup and compliance purposes. The data is securely transferred to the cloud and then is properly encrypted while at rest by using AWS-native encryption mechanisms. These mechanisms give AWS the necessary technical means to encrypt and decrypt the data when such is required by the company. There is no data processing agreement between AWS and the company.

Should Jane modify the required GDPR rights waiver for non-European residents?

A.

Yes, the waiver must not apply to any residents of countries with an adequacy decision from the EC.

Answers
A.

Yes, the waiver must not apply to any residents of countries with an adequacy decision from the EC.

B.

Yes, this clause must be entirely removed as all customers, regardless of residence or nationality, shall enjoy the same individual rights granted under GDPR.

Answers
B.

Yes, this clause must be entirely removed as all customers, regardless of residence or nationality, shall enjoy the same individual rights granted under GDPR.

C.

No, the non-EU residents are not protected by GDPR unless they are physically located in the EU.

Answers
C.

No, the non-EU residents are not protected by GDPR unless they are physically located in the EU.

D.

No, but all non-EU residents must manually sign a separate waiver to ensure its lawfulness and enforceability under GDPR.

Answers
D.

No, but all non-EU residents must manually sign a separate waiver to ensure its lawfulness and enforceability under GDPR.

Suggested answer: B

Explanation:

The GDPR applies to the processing of personal data of data subjects who are in the EU, regardless of their nationality or residence. This means that non-EU residents who are physically located in the EU are protected by the GDPR, and EU residents who are outside the EU are not. However, this does not mean that non-EU residents who are outside the EU can be asked to waive their GDPR rights by a company that is subject to the GDPR. The GDPR does not allow such waivers, as they would undermine the essence of the fundamental rights and freedoms of data subjects. The GDPR also requires that data subjects are provided with clear and transparent information about the processing of their personal data, and that they give their consent freely, specifically, informedly and unambiguously. A blanket waiver of GDPR rights does not meet these criteria, and would therefore be invalid and unenforceable.

* GDPR Article 3 - Territorial scope1

* GDPR Article 7 - Conditions for consent2

* GDPR Article 25 - Data protection by design and by default3

* GDPR Recital 171 - Relationship with previously concluded agreements4

asked 22/11/2024
amy ashton
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