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The CIPP/E Exam covers a range of topics related to data protection laws and regulations in Europe, including the General Data Protection Regulation (GDPR), and provides a comprehensive understanding of the legal principles that govern the collection, use, and disclosure of personal information. CIPP-E exam is designed to test the knowledge, skills, and abilities of professionals who are responsible for managing and protecting personal data in their organizations, and it is recognized as the gold standard in privacy certification for European privacy professionals.
The CIPP-E exam is designed for individuals who work in the field of data protection and privacy, including data protection officers, privacy professionals, lawyers, and consultants. CIPP-E exam covers a wide range of topics related to data protection, including EU data protection laws and regulations, data transfer mechanisms, and privacy compliance frameworks. CIPP-E exam also covers emerging trends in privacy, such as the use of artificial intelligence and the impact of the General Data Protection Regulation (GDPR).
NEW QUESTION # 77
SCENARIO
Please use the following to answer the next question:
Liem, an online retailer known for its environmentally friendly shoes, has recently expanded its presence in Europe. Anxious to achieve market dominance, Liem teamed up with another eco friendly company, EcoMick, which sells accessories like belts and bags. Together the companies drew up a series of marketing campaigns designed to highlight the environmental and economic benefits of their products. After months of planning, Liem and EcoMick entered into a data sharing agreement to use the same marketing database, MarketIQ, to send the campaigns to their respective contacts.
Liem and EcoMick also entered into a data processing agreement with MarketIQ, the terms of which included processing personal data only upon Liem and EcoMick's instructions, and making available to them all information necessary to demonstrate compliance with GDPR obligations.
Liem and EcoMick then procured the services of a company called JaphSoft, a marketing optimization firm that uses machine learning to help companies run successful campaigns. Clients provide JaphSoft with the personal data of individuals they would like to be targeted in each campaign. To ensure protection of its clients' data, JaphSoft implements the technical and organizational measures it deems appropriate. JaphSoft works to continually improve its machine learning models by analyzing the data it receives from its clients to determine the most successful components of a successful campaign. JaphSoft then uses such models in providing services to its client-base. Since the models improve only over a period of time as more information is collected, JaphSoft does not have a deletion process for the data it receives from clients. However, to ensure compliance with data privacy rules, JaphSoft pseudonymizes the personal data by removing identifying information from the contact information. JaphSoft's engineers, however, maintain all contact information in the same database as the identifying information.
Under its agreement with Liem and EcoMick, JaphSoft received access to MarketIQ, which included contact information as well as prior purchase history for such contacts, to create campaigns that would result in the most views of the two companies' websites. A prior Liem customer, Ms. Iman, received a marketing campaign from JaphSoft regarding Liem's as well as EcoMick's latest products. While Ms. Iman recalls checking a box to receive information in the future regarding Liem's products, she has never shopped EcoMick, nor provided her personal data to that company.
Which of the following BEST describes the relationship between Liem, EcoMick and JaphSoft?
- A. Liem and EcoMick are joint controllers because they carry out joint marketing activities.
- B. Liem is a controller and EcoMick is a processor because Liem provides specific instructions regarding how the marketing campaigns should be rolled out.
- C. JaphSoft is the sole processor because it processes personal data on behalf of its clients.
- D. EcoMick and JaphSoft are is a controller and Liem is a processor because EcoMick is sharing its marketing data with Liem for contacts in Europe.
Answer: D
NEW QUESTION # 78
According to Art 23 GDPR, which of the following data subject rights can NOT be restricted?
- A. Right to restriction of processing.
- B. Right not to be subject to automated individual decision-making
- C. Right to erasure ("Right to be forgotten").
- D. Right to lodge a complaint with a supervisory authority.
Answer: A
NEW QUESTION # 79
A worker in a European Union (EU) member state has ceased his employment with a company. What should the employer most likely do in regard to the worker's personal data?
- A. Provide the employee the reasons for retaining the data.
- B. Store all of the data in case the departing worker makes a subject access request.
- C. Securely store the data that is required to be kept under local law.
- D. Destroy sensitive information and store the rest per applicable data protection rules.
Answer: C
Explanation:
The GDPR requires that personal data be kept for no longer than is necessary for the purposes for which the personal data are processed1. However, the GDPR also allows member states to provide for more specific rules on the processing of employees' personal data in the employment context, including the retention periods for erasure and deletion of categories of personal data2. Therefore, the employer should securely store the data that is required to be kept under local law, such as tax records, pension records, or health and safety records34. The employer should also ensure that the data is protected from unauthorized or unlawful access, accidental loss, destruction, or damage1. The employer should not store the data for longer than necessary or for purposes other than those for which the data was collected, unless the employee has given consent or there is another legal basis for doing so13. Reference: 1: Article 5 of the GDPR 2: Article 88 of the GDPR 3: Data Protection and GDPR in the Workplace | Factsheets | CIPD 4: How to Manage the Retention of Employee Data | GDPR Blog
NEW QUESTION # 80
SCENARIO
Please use the following to answer the next question:
Joe started the Gummy Bear Company in 2000 from his home in Vermont, USA. Today, it is a multi-billion-dollar candy company operating in every continent. All of the company's IT servers are located in Vermont. This year Joe hires his son Ben to join the company and head up Project Big, which is a major marketing strategy to triple gross revenue in just 5 years. Ben graduated with a PhD in computer software from a top university. Ben decided to join his father's company, but is also secretly working on launching a new global online dating website company called Ben Knows Best.
Ben is aware that the Gummy Bear Company has millions of customers and believes that many of them might also be interested in finding their perfect match. For Project Big, Ben redesigns the company's online web portal and requires customers in the European Union and elsewhere to provide additional personal information in order to remain a customer. Project Ben begins collecting data about customers' philosophical beliefs, political opinions and marital status.
If a customer identifies as single, Ben then copies all of that customer's personal data onto a separate database for Ben Knows Best. Ben believes that he is not doing anything wrong, because he explicitly asks each customer to give their consent by requiring them to check a box before accepting their information. As Project Big is an important project, the company also hires a first year college student named Sam, who is studying computer science to help Ben out.
Ben calls out and Sam comes across the Ben Knows Best database. Sam is planning on going to Ireland over Spring Beak with 10 of his friends, so he copies all of the customer information of people that reside in Ireland so that he and his friends can contact people when they are in Ireland.
Joe also hires his best friend's daughter, Alice, who just graduated from law school in the U.S., to be the company's new General Counsel. Alice has heard about the GDPR, so she does some research on it. Alice approaches Joe and informs him that she has drafted up Binding Corporate Rules for everyone in the company to follow, as it is important for the company to have in place a legal mechanism to transfer data internally from the company's operations in the European Union to the U.S.
Joe believes that Alice is doing a great job, and informs her that she will also be in-charge of handling a major lawsuit that has been brought against the company in federal court in the U.S. To prepare for the lawsuit, Alice instructs the company's IT department to make copies of the computer hard drives from the entire global sales team, including the European Union, and send everything to her so that she can review everyone's information. Alice believes that Joe will be happy that she did the first level review, as it will save the company a lot of money that would otherwise be paid to its outside law firm.
When Ben had the company collect additional data from its customers, the most serious violation of the GDPR occurred because the processing of the data created what?
- A. A significant risk due to the lack of an informed consent mechanism.
- B. An information security risk by copying the data into a new database.
- C. A potential legal liability and financial exposure from its customers.
- D. A significant risk to the customers' fundamental rights and freedoms.
Answer: D
NEW QUESTION # 81
According to the GDPR, what is the main task of a Data Protection Officer (DPO)?
- A. To create procedures for notification of personal data breaches to competent supervisory authorities.
- B. To conduct Privacy Impact Assessments on behalf of the controller or processor.
- C. To create and maintain records of processing activities.
- D. To monitor compliance with other local or European data protection provisions.
Answer: D
Explanation:
Reference https://digitalguardian.com/blog/what-data-protection-officer-dpo-learn-about-new-role-required- gdpr-compliance
NEW QUESTION # 82
What is true if an employee makes an access request to his employer for any personal data held about him?
- A. The employer must supply all the information held about the employee.
- B. The employer can decline the request if the information is only held electronically.
- C. The employer can automatically decline the request if it contains personal data about a third person.
- D. The employer must supply any information held about an employee unless an exemption applies.
Answer: D
Explanation:
According to the UK GDPR, employees have the right to access and receive a copy of their personal data, and other supplementary information, from their employer. This is known as a data subject access request (DSAR). Employers must respond to a DSAR without delay and within one month of receipt of the request, unless the request is complex or excessive. Employers should perform a reasonable search for the requested information and provide it in an accessible, concise and intelligible format. Employers can only refuse to provide the information if an exemption or restriction applies, or if the request is manifestly unfounded or excessive. Some of the exemptions that may apply in the employment context are: legal privilege, management forecasting, confidential references, negotiations, regulatory functions, and criminal convictions and offences. Employers should disclose the information securely and inform the employee of their rights and the source of the data. Reference:
Right of access | ICO
Subject access request Q and As for employers | ICO
Data Subject Access Request (Employers' Guide) | DavidsonMorris
NEW QUESTION # 83
What type of data lies beyond the scope of the General Data Protection Regulation?
- A. Masked
- B. Pseudonymized
- C. Encrypted
- D. Anonymized
Answer: D
NEW QUESTION # 84
What permissions are required for a marketer to send an email marketing message to a consumer in the EU?
- A. A notice that the consumer's email address will be used for marketing purposes.
- B. No prior permission required, but an opt-out requirement on all emails sent to consumers.
- C. A pre-checked box stating that the consumer agrees to receive email marketing.
- D. A prior opt-in consent for consumers unless they are already customers.
Answer: D
NEW QUESTION # 85
What term BEST describes the European model for data protection?
- A. Self-regulatory
- B. Comprehensive
- C. Sectoral
- D. Market-based
Answer: C
NEW QUESTION # 86
SCENARIO
Please use the following to answer the next question:
Building Block Inc. is a multinational company, headquartered in Chicago with offices throughout the United States, Asia, and Europe (including Germany, Italy, France and Portugal). Last year the company was the victim of a phishing attack that resulted in a significant data breach. The executive board, in coordination with the general manager, their Privacy Office and the Information Security team, resolved to adopt additional security measures. These included training awareness programs, a cybersecurity audit, and use of a new software tool called SecurityScan, which scans employees' computers to see if they have software that is no longer being supported by a vendor and therefore not getting security updates. However, this software also provides other features, including the monitoring of employees' computers.
Since these measures would potentially impact employees, Building Block's Privacy Office decided to issue a general notice to all employees indicating that the company will implement a series of initiatives to enhance information security and prevent future data breaches.
After the implementation of these measures, server performance decreased. The general manager instructed the Security team on how to use SecurityScan to monitor employees' computers activity and their location.
During these activities, the Information Security team discovered that one employee from Italy was daily connecting to a video library of movies, and another one from Germany worked remotely without authorization. The Security team reported these incidents to the Privacy Office and the general manager. In their report, the team concluded that the employee from Italy was the reason why the server performance decreased.
Due to the seriousness of these infringements, the company decided to apply disciplinary measures to both employees, since the security and privacy policy of the company prohibited employees from installing software on the company's computers, and from working remotely without authorization.
In addition to notifying employees about the purpose of the monitoring, the potential uses of their data and their privacy rights, what information should Building Block have provided them before implementing the security measures?
- A. Information about how providing consent could affect them as employees.
- B. Information about how the measures are in the best interests of the company.
- C. Information about who employees should contact with any queries.
- D. Information about what is specified in the employment contract.
Answer: D
NEW QUESTION # 87
Which sentence BEST summarizes the concepts of "fairness," "lawfulness" and "transparency", as expressly required by Article 5 of the GDPR?
- A. Fairness refers to the collection of data from diverse subjects; lawfulness refers to the need for legal rules to be uniform; transparency refers to giving individuals access to their data.
- B. Fairness refers to the security of personal data; lawfulness and transparency refers to the analysis of ordinances to ensure they are uniformly enforced.
- C. Fairness and transparency refer to the communication of key information before collecting data; lawfulness refers to compliance with government regulations.
- D. Fairness refers to limiting the amount of data collected from individuals; lawfulness refers to the approval of company guidelines by the state; transparency solely relates to communication of key information before collecting data.
Answer: C
Explanation:
According to the UK GDPR, the processing of personal data must be lawful, fair and transparent1. Lawfulness means that there must be a valid legal basis for processing personal data, such as consent, contract, legal obligation, vital interests, public task or legitimate interests1. Fairness means that the processing must not be detrimental, unexpected or misleading to the individuals concerned1. Transparency means that the individuals must be informed about how their data is used, who it is shared with, what rights they have and how they can exercise them1. Therefore, the sentence that best summarizes these concepts is option A, which states that fairness and transparency refer to the communication of key information before collecting data; lawfulness refers to compliance with government regulations. Reference: 1 https://ico.org.uk/for-organisations-2/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/principles/lawfulness-fairness-and-transparency/
NEW QUESTION # 88
A key component of the OECD Guidelines is the "Individual Participation Principle". What parts of the General Data Protection Regulation (GDPR) provide the closest equivalent to that principle?
- A. The breach notification requirements specified in Articles 33 and 34
- B. The rights granted to data subjects under Articles 12 to 22
- C. The information requirements set out in Articles 13 and 14
- D. The lawful processing criteria stipulated by Articles 6 to 9
Answer: B
NEW QUESTION # 89
Which institution has the power to adopt findings that confirm the adequacy of the data protection level in a non-EU country?
- A. The European Commission
- B. The European Council
- C. The Article 29 Working Party
- D. The European Parliament
Answer: A
NEW QUESTION # 90
Based on GDPR Article 35, which of the following situations would trigger the need to complete a DPIA?
- A. A company wants to build a dating app that creates candidate profiles based on location data and data from third-party sources.
- B. A company wants to combine location data with other data in order to offer more personalized service for the customer.
- C. A company wants to use location data to track delivery trucks in order to make the routes more efficient.
- D. A company wants to use location data to infer information on a person's clothes purchasing habits.
Answer: A
Explanation:
Explanation/Reference: http://webcache.googleusercontent.com/search?q=cache:aQkU17eX9sQJ:https:// www.shlegal.com/insights/article-29-data-protection-working-party-gdpr-guidelines-on-data-protection-impact- assessments&client=firefox-b-e&hl=en&gl=pk&strip=1&vwsrc=0
NEW QUESTION # 91
Assuming that the "without undue delay" provision is followed, what is the time limit for complying with a data access request?
- A. Within 40 days of receipt, which may be extended by up to 40 additional days
- B. Within 40 days of receipt
- C. Within one month of receipt, which may be extended by an additional two months
- D. Within one month of receipt, which may be extended by up to an additional month
Answer: D
Explanation:
Reference https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection- regulation-gdpr/individual-rights/right-of-access/
NEW QUESTION # 92
Sanctions for non-compliance with the EU Artificial Intelligence Act (Al Act) could result in a maximum fine of?
- A. The higher of up to 20 million Euro or up to 4% of the entity's total worldwide turnover for the preceding financial year.
- B. The higher of up to 40 million Euro or up to 8% of the entity's total worldwide turnover for the preceding financial year.
- C. The higher of up to 30 million Euro or up to 6% of the entity's total worldwide turnover for the preceding financial year.
- D. The higher of up to 10 million Euro or up to 2% of the entity's total worldwide turnover for the preceding financial year.
Answer: C
Explanation:
The EU Artificial Intelligence Act (AI Act) is a proposed regulation that aims to establish harmonised rules on the development and use of artificial intelligence in the EU. The AI Act classifies AI systems according to their level of risk and imposes various requirements and obligations on providers and users of such systems. The AI Act also provides for the enforcement of its rules by national competent authorities and the European Commission. According to Article 71 of the AI Act, the sanctions for non-compliance with the AI Act depend on the type and severity of the infringement. The maximum fine for the most serious infringements, such as placing on the market or putting into service prohibited AI systems, or failing to comply with the data and data governance requirements for high-risk AI systems, is the higher of up to 30 million Euro or up to 6% of the total worldwide annual turnover of the preceding financial year of the legal entity concerned. This is the same level of fine as for the most serious infringements of the General Data Protection Regulation (GDPR).
Reference:
* EUR-Lex - 52021PC0206 - EN - EUR-Lex1
* European Parliament Adopts Negotiating Position on the AI Act2
NEW QUESTION # 93
When does the GDPR provide more latitude for a company to process data beyond its original collection purpose?
- A. When the data has been pseudonymized.
- B. When the data serves legitimate interest of third parties.
- C. When the data is protected by technological safeguards.
- D. When the data subject has failed to use a provided opt-out mechanism.
Section: (none)
Explanation
Answer: B
NEW QUESTION # 94
Under Article 58 of the GDPR, which of the following describes a power of supervisory authorities in European Union (EU) member states?
- A. The authority to select penalties when a controller is found guilty in a court of law.
- B. The discretion to carry out goals of elected officials within the member state.
- C. The right to access data for investigative purposes.
- D. The ability to enact new laws by executive order.
Answer: C
Explanation:
Article 58 of the GDPR lists the powers of supervisory authorities in EU member states. Among these powers are the investigative powers, which include the right to access data and information from controllers and processors, as well as to access their premises and equipment. This power enables the supervisory authorities to perform their tasks of monitoring and enforcing the GDPR. The other options are not powers of supervisory authorities under Article 58 of the GDPR. Reference: Art. 58 GDPR - Powers, Article 58 Powers - GDPR, Article 58 GDPR - GDPRhub
NEW QUESTION # 95
Which sentence BEST summarizes the concepts of "fairness," "lawfulness" and "transparency", as expressly required by Article 5 of the GDPR?
- A. Fairness refers to the collection of data from diverse subjects; lawfulness refers to the need for legal rules to be uniform; transparency refers to giving individuals access to their data.
- B. Fairness refers to the security of personal data; lawfulness and transparency refers to the analysis of ordinances to ensure they are uniformly enforced.
- C. Fairness and transparency refer to the communication of key information before collecting data; lawfulness refers to compliance with government regulations.
- D. Fairness refers to limiting the amount of data collected from individuals; lawfulness refers to the approval of company guidelines by the state; transparency solely relates to communication of key information before collecting data.
Answer: C
NEW QUESTION # 96
In which of the following cases, cited as an example by a WP29 guidance, would conducting a single data protection impact assessment to address multiple processing operations be allowed?
- A. A data controller who plans to use a new technology product that has already undergone a DPIA by the product's provider.
- B. A railway operator who plans to evaluate the same video surveillance in all the train stations of his company.
- C. A medical organization that wants to begin genetic testing to support earlier research for which they have performed a DPIA.
- D. A marketing team that wants to collect mailing addresses of customers for whom they already have email addresses.
Answer: B
NEW QUESTION # 97
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IAPP CIPP-E certification is an essential credential for professionals working in data protection and privacy. Certified Information Privacy Professional/Europe (CIPP/E) certification program covers the foundational elements of European privacy laws and regulations, equipping individuals with the knowledge and skills required to manage sensitive data effectively. By obtaining the CIPP-E certification, professionals can demonstrate their commitment to privacy and data protection, positioning themselves as valuable assets to any organization looking to achieve compliance with European data protection laws.
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