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?
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?
Select the answer below that accurately completes the following:
“The right to compensation and liability under the GDPR…
Under what circumstances might the “soft opt-in†rule apply in relation to direct marketing?
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?
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?
Sanctions for non-compliance with the EU Artificial Intelligence Act (Al Act) could result in a maximum fine of?
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?