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IAPP Certified Information Privacy Professional/Europe (CIPP/E) Sample Questions (Q198-Q203):

NEW QUESTION # 198
SCENARIO
Please use the following to answer the next question:
Joe is the new privacy manager for Who-R-U, a Canadian business that provides DNA analysis. The company is headquartered in Montreal, and all of its employees are located there. The company offers its services to Canadians only: Its website is in English and French, it accepts only Canadian currency, and it blocks internet traffic from outside of Canada (although this solution doesn't prevent all non-Canadian traffic). It also declines to process orders that request the DNA report to be sent outside of Canada, and returns orders that show a non-Canadian return address.
Bob, the President of Who-R-U, thinks there is a lot of interest for the product in the EU, and the company is exploring a number of plans to expand its customer base.
The first plan, collegially called We-Track-U, will use an app to collect information about its current Canadian customer base. The expansion will allow its Canadian customers to use the app while traveling abroad. He suggests that the company use this app to gather location information. If the plan shows promise, Bob proposes to use push notifications and text messages to encourage existing customers to pre-register for an EU version of the service. Bob calls this work plan, We-Text-U. Once the company has gathered enough pre- registrations, it will develop EU-specific content and services.
Another plan is called Customer for Life. The idea is to offer additional services through the company's app, like storage and sharing of DNA information with other applications and medical providers. The company's contract says that it can keep customer DNA indefinitely, and use it to offer new services and market them to customers. It also says that customers agree not to withdraw direct marketing consent. Paul, the marketing director, suggests that the company should fully exploit these provisions, and that it can work around customers' attempts to withdraw consent because the contract invalidates them.
The final plan is to develop a brand presence in the EU. The company has already begun this process. It is in the process of purchasing the naming rights for a building in Germany, which would come with a few offices that Who-R-U executives can use while traveling internationally. The office doesn't include any technology or infrastructure; rather, it's simply a room with a desk and some chairs.
On a recent trip concerning the naming-rights deal, Bob's laptop is stolen. The laptop held unencrypted DNA reports on 5,000 Who-R-U customers, all of whom are residents of Canada. The reports include customer name, birthdate, ethnicity, racial background, names of relatives, gender, and occasionally health information.
Who-R-U is NOT required to notify the local German DPA about the laptop theft because?

• A. There is no evidence that the thieves have accessed the data on the laptop.
• B. The company isn't a controller established in the Union.
• C. The laptop belonged to a company located in Canada.
• D. The data isn't considered personally identifiable financial information.

Answer: B

Explanation:
According to the GDPR, a data breach must be notified to the supervisory authority of the member state where the controller or processor is established, unless the breach is unlikely to result in a risk to the rights and freedoms of natural persons1. The GDPR defines a controller as "the natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of personal data"2. The GDPR also specifies that a controller or processor is considered to be established in the Union if it has "an effective and real exercise of activity through stable arrangements" in the Union, regardless of its legal form or location of its headquarters3.
In this scenario, Who-R-U is not a controller established in the Union, because it does not have any stable arrangements in the Union that involve the processing of personal data. The company only offers its services to Canadians, and does not target or monitor individuals in the Union. The fact that it has purchased the naming rights for a building in Germany, which comes with a few offices, does not constitute an effective and real exercise of activity in the Union, as the offices do not include any technology or infrastructure for processing personal data, and are only used by executives while traveling internationally. Therefore, Who-R- U is not subject to the GDPR's data breach notification obligation, and is not required to notify the local German DPA about the laptop theft.
References:
* Art. 33 GDPR - Notification of a personal data breach to the supervisory authority
* Art. 4 GDPR - Definitions
* Art. 3 GDPR - Territorial scope
* Guidelines 9/2022 on personal data breach notification under GDPR
* Guidelines 3/2018 on the territorial scope of the GDPR
I hope this helps you understand the GDPR and data breach notification better. If you have any other questions, please feel free to ask me. #

 

NEW QUESTION # 199
SCENARIO
Please use the following to answer the next question:
Javier is a member of the fitness club EVERFIT. This company has branches in many EU member states, but for the purposes of the GDPR maintains its primary establishment in France. Javier lives in Newry, Northern Ireland (part of the U.K.), and commutes across the border to work in Dundalk, Ireland. Two years ago while on a business trip, Javier was photographed while working out at a branch of EVERFIT in Frankfurt, Germany. At the time, Javier gave his consent to being included in the photograph, since he was told that it would be used for promotional purposes only. Since then, the photograph has been used in the club's U.K.
brochures, and it features in the landing page of its U.K. website. However, the fitness club has recently fallen into disrepute due to widespread mistreatment of members at various branches of the club in several EU member states. As a result, Javier no longer feels comfortable with his photograph being publicly associated with the fitness club.
After numerous failed attempts to book an appointment with the manager of the local branch to discuss this matter, Javier sends a letter to EVETFIT requesting that his image be removed from the website and all promotional materials. Months pass and Javier, having received no acknowledgment of his request, becomes very anxious about this matter. After repeatedly failing to contact EVETFIT through alternate channels, he decides to take action against the company.
Javier contacts the U.K. Information Commissioner's Office ('ICO' - the U.K.'s supervisory authority) to lodge a complaint about this matter. The ICO, pursuant to Article 56 (3) of the GDPR, informs the CNIL (i.e.
the supervisory authority of EVERFIT's main establishment) about this matter. Despite the fact that EVERFIT has an establishment in the U.K., the CNIL decides to handle the case in accordance with Article
60 of the GDPR. The CNIL liaises with the ICO, as relevant under the cooperation procedure. In light of issues amongst the supervisory authorities to reach a decision, the European Data Protection Board becomes involved and, pursuant to the consistency mechanism, issues a binding decision.
Additionally, Javier sues EVERFIT for the damages caused as a result of its failure to honor his request to have his photograph removed from the brochure and website.
Under the cooperation mechanism, what should the lead authority (the CNIL) do after it has formed its view on the matter?

• A. Submit a draft decision to other supervisory authorities for their opinion.
• B. Submit a draft decision directly to the Commission to ensure the effectiveness of the consistency mechanism.
• C. Request that members of the seconding supervisory authority and the host supervisory authority co- draft a decision.
• D. Request that the other supervisory authorities provide the lead authority with a draft decision for its consideration.

Answer: A

Explanation:
According to Article 60 of the GDPR, the lead authority (the CNIL in this case) shall cooperate with the other concerned supervisory authorities (the ICO and any other authority where EVERFIT has an establishment or where data subjects are affected) to reach a consensus on the case. The lead authority shall submit a draft decision to the other authorities for their opinion and take due account of their views. If the other authorities agree with the draft decision, the lead authority shall adopt and notify it to the controller (EVERFIT) and the complainant (Javier). If the other authorities object to the draft decision, they shall express their objections within a specified period and try to reach a consensus with the lead authority. If no consensus is reached, the matter shall be referred to the EDPB for a binding decision under the consistency mechanism (Article 65 of the GDPR). References: GDPR Cooperation and Enforcement, First overview on the implementation of the GDPR and the roles and means of the national supervisory authorities, Data protection: Commission adopts new rules to ensure stronger cooperation and enforcement, Article 65 FAQ

 

NEW QUESTION # 200
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.
• B. When the controller is required to have a Data Protection Officer.
• C. When personal data is being collected and combined with other personal data to profile the creditworthiness of individuals.
• D. When personal data is being transferred outside of the EEA.

Answer: B

Explanation:
Reference:
%20the%20General,and%20freedoms%20of%20natural%20persons%27.

 

NEW QUESTION # 201
Which of the following would most likely NOT be covered by the definition of "personal data" under the GDPR?

• A. The unlinked aggregated data used for statistical purposes by an Italian company
• B. The identification number of a German candidate for a professional examination in Germany
• C. The payment card number of a Dutch citizen
• D. The U.S. social security number of an American citizen living in France

Answer: A

Explanation:
The definition of personal data under the GDPR is broad and covers any information that relates to an identified or identifiable natural person. This means that personal data can include information such as name, email, phone number, address, date of birth, race, gender, political opinions and more. The GDPR protects personal data on all levels, platforms and technologies, and requires organizations to process it only for a specific purpose and keep it for a limited time.
The unlinked aggregated data used for statistical purposes by an Italian company would most likely NOT be covered by the definition of personal data under the GDPR. Aggregated data is data that has been processed in such a way that individual records are no longer identifiable. For example, if a company collects the names and email addresses of its customers and then calculates the average age of its customers, the resulting data is aggregated and not personal. Therefore, this type of data would not be subject to the GDPR.
However, this does not mean that the Italian company can use this type of data without any restrictions or obligations. The GDPR still applies to any processing activity that involves personal data in any form or manner. For example, if the Italian company uses this type of data to create a profile or a segment of its customers based on their characteristics or preferences, it may still need to comply with certain principles and conditions under the GDPR. For instance, it may need to obtain consent from its customers before using their aggregated data for marketing purposes; it may need to ensure that its aggregated data is accurate and up-to-date; it may need to limit the retention period of its aggregated data; and it may need to respect the rights of its customers regarding their personal data.
Reference:
What is personal data? | ICO
What is considered personal data under the EU GDPR?
[GDPR personal data - what information does this cover?]

 

NEW QUESTION # 202
SCENARIO
Please use the following to answer the next question:
Javier is a member of the fitness club EVERFIT. This company has branches in many EU member states, but for the purposes of the GDPR maintains its primary establishment in France. Javier lives in Newry, Northern Ireland (part of the U.K.), and commutes across the border to work in Dundalk, Ireland. Two years ago while on a business trip, Javier was photographed while working out at a branch of EVERFIT in Frankfurt, Germany. At the time, Javier gave his consent to being included in the photograph, since he was told that it would be used for promotional purposes only. Since then, the photograph has been used in the club's U.K. brochures, and it features in the landing page of its U.K. website. However, the fitness club has recently fallen into disrepute due to widespread mistreatment of members at various branches of the club in several EU member states. As a result, Javier no longer feels comfortable with his photograph being publicly associated with the fitness club.
After numerous failed attempts to book an appointment with the manager of the local branch to discuss this matter, Javier sends a letter to EVETFIT requesting that his image be removed from the website and all promotional materials. Months pass and Javier, having received no acknowledgment of his request, becomes very anxious about this matter. After repeatedly failing to contact EVETFIT through alternate channels, he decides to take action against the company.
Javier contacts the U.K. Information Commissioner's Office ('ICO' - the U.K.'s supervisory authority) to lodge a complaint about this matter. The ICO, pursuant to Article 56 (3) of the GDPR, informs the CNIL (i.e. the supervisory authority of EVERFIT's main establishment) about this matter. Despite the fact that EVERFIT has an establishment in the U.K., the CNIL decides to handle the case in accordance with Article 60 of the GDPR. The CNIL liaises with the ICO, as relevant under the cooperation procedure. In light of issues amongst the supervisory authorities to reach a decision, the European Data Protection Board becomes involved and, pursuant to the consistency mechanism, issues a binding decision.
Additionally, Javier sues EVERFIT for the damages caused as a result of its failure to honor his request to have his photograph removed from the brochure and website.
Under the cooperation mechanism, what should the lead authority (the CNIL) do after it has formed its view on the matter?

• A. Submit a draft decision to other supervisory authorities for their opinion.
• B. Submit a draft decision directly to the Commission to ensure the effectiveness of the consistency mechanism.
• C. Request that members of the seconding supervisory authority and the host supervisory authority co-draft a decision.
• D. Request that the other supervisory authorities provide the lead authority with a draft decision for its consideration.

Answer: A

Explanation:
According to Article 60 of the GDPR, the lead authority (the CNIL in this case) shall cooperate with the other concerned supervisory authorities (the ICO and any other authority where EVERFIT has an establishment or where data subjects are affected) to reach a consensus on the case. The lead authority shall submit a draft decision to the other authorities for their opinion and take due account of their views. If the other authorities agree with the draft decision, the lead authority shall adopt and notify it to the controller (EVERFIT) and the complainant (Javier). If the other authorities object to the draft decision, they shall express their objections within a specified period and try to reach a consensus with the lead authority. If no consensus is reached, the matter shall be referred to the EDPB for a binding decision under the consistency mechanism (Article 65 of the GDPR). Reference: GDPR Cooperation and Enforcement, First overview on the implementation of the GDPR and the roles and means of the national supervisory authorities, Data protection: Commission adopts new rules to ensure stronger cooperation and enforcement, Article 65 FAQ

 

NEW QUESTION # 203
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