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CIPP-E Exam Dumps - Certified Information Privacy Professional/Europe (CIPP/E)

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Question # 33

If a company chooses to ground an international data transfer on the contractual route, which of the following is NOT a valid set of standard contractual clauses?

A.

Decision 2001/497/EC (EU controller to non-EU or EEA controller).

B.

Decision 2004/915/EC (EU controller to non-EU or EEA controller).

C.

Decision 2007/72/EC (EU processor to non-EU or EEA controller).

D.

Decision 2010/87/EU (Non-EU or EEA processor from EU controller).

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Question # 34

Under the GDPR, who would be LEAST likely to be allowed to engage in the collection, use, and disclosure of a data subject’s sensitive medical information without the data subject’s knowledge or consent?

A.

A member of the judiciary involved in adjudicating a legal dispute involving the data subject and concerning the health of the data subject.

B.

A public authority responsible for public health, where the sharing of such information is considered necessary for the protection of the general populace.

C.

A health professional involved in the medical care for the data subject, where the data subject’s life hinges on the timely dissemination of such information.

D.

A journalist writing an article relating to the medical condition in QUESTION, who believes that the publication of such information is in the public interest.

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Question # 35

Select the answer below that accurately completes the following:

“The right to compensation and liability under the GDPR…

A.

…provides for an exemption from liability if the data controller (or data processor) proves that it is not in any way responsible for the event giving rise to the damage.”

B.

…precludes any subsequent recourse proceedings against other controllers or processors involved in the same processing.”

C.

...can only be exercised against the data controller, even if a data processor was involved in the same processing.”

D.

…is limited to a maximum amount of EUR 20 million per event of damage or loss.”

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Question # 36

Under what circumstances might the “soft opt-in” rule apply in relation to direct marketing?

A.

When an individual has not consented to the marketing.

B.

When an individual’s details are obtained from their inquiries about buying a product.

C.

Where an individual’s details have been obtained from a bought-in marketing list.

D.

Where an individual is given the ability to unsubscribe from marketing emails sent to him.

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Question # 37

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.

Why is this company obligated to comply with the GDPR?

A.

The company has offices in the EU.

B.

The company employs staff in the EU.

C.

The company’s data center is located in a country outside the EU.

D.

The company’s products are marketed directly to EU customers.

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Question # 38

SCENARIO

Please use the following to answer the next question:

Zandelay Fashion (‘Zandelay’) is a successful international online clothing retailer that employs approximately 650 people at its headquarters based in Dublin, Ireland. Martin is their recently appointed data protection officer, who oversees the company’s compliance with the General Data Protection Regulation (GDPR) and other privacy legislation.

The company offers both male and female clothing lines across all age demographics, including children. In doing so, the company processes large amounts of information about such customers, including preferences and sensitive financial information such as credit card and bank account numbers.

In an aggressive bid to build revenue growth, Jerry, the CEO, tells Martin that the company is launching a new mobile app and loyalty scheme that puts significant emphasis on profiling the company’s customers by analyzing their purchases. Martin tells the CEO that: (a) the potential risks of such activities means that Zandelay needs to carry out a data protection impact assessment to assess this new venture and its privacy implications; and (b) where the results of this assessment indicate a high risk in the absence of appropriate protection measures, Zandelay may have to undertake a prior consultation with the Irish Data Protection Commissioner before implementing the app and loyalty scheme.

Jerry tells Martin that he is not happy about the prospect of having to directly engage with a supervisory authority and having to disclose details of Zandelay’s business plan and associated processing activities.

What would MOST effectively assist Zandelay in conducting their data protection impact assessment?

A.

Information about DPIAs found in Articles 38 through 40 of the GDPR.

B.

Data breach documentation that data controllers are required to maintain.

C.

Existing DPIA guides published by local supervisory authorities.

D.

Records of processing activities that data controllers are required to maintain.

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Question # 39

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 10 million Euro or up to 2% 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 20 million Euro or up to 4% of the entity's total worldwide turnover for the preceding financial year.

D.

The higher of up to 30 million Euro or up to 6% of the entity's total worldwide turnover for the preceding financial year.

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Question # 40

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.

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.

D.

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

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