CIPP/US 2024 Questions

Question 1

Which authority supervises and enforces laws regarding advertising to children via the Internet?

Answer 1

The FTC

Question 2

According to Section 5 of the FTC Act, self-regulation primarily involves a company’s right to do what?

Answer 2

Adhere to its industry’s code of conduct

Question 3

Which was NOT one of the five priority areas listed by the Federal Trade Commission in its 2012 report, “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers”?

Answer 3

International data transfers

Question 4

The “Consumer Privacy Bill of Rights” presented in a 2012 Obama administration report is generally based on?

Answer 4

Traditional fair information practices

Question 5

What is a legal document approved by a judge that formalizes an agreement between a governmental agency and an adverse party called?

Answer 5

A consent decree

Question 6

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What type of legal choice does not notice provide?

Answer 6

Opt-out

Question 7

Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customers’ privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer’s personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worries Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl’s concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company’s day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.

What is the best reason for Cheryl to follow Janice’s suggestion about classifying customer data?

Answer 7

It will increase the security of customers’ personal information (PI)

Question 8

What is the most likely risk of Fitness Coach, Inc. adopting Janice’s first draft of the privacy policy?

Answer 8

Leaving the company susceptible to violations by setting unrealistic goals

Question 9

What is the main problem with Cheryl’s suggested method of communicating the new privacy policy?

Answer 9

The policy might not be implemented consistently across departments.

Question 10

Based on the scenario, which of the following would have helped Janice to better meet the company’s needs?

Answer 10

Spending more time understanding the company’s information goals

Question 11

According to the FTC Report of 2012, what is the main goal of Privacy by Design?

Answer 11

Incorporating privacy protections throughout the development process

Question 12

What is the main reason some supporters of the European approach to privacy are skeptical about self-regulation of privacy practices?

Answer 12

Industries may not be strict enough in the creation and enforcement of rules

Question 13

What is the main purpose of the Global Privacy Enforcement Network?

Answer 13

To promote universal cooperation among privacy authorities

Question 14

In 2014, Google was alleged to have violated the Family Educational Rights and Privacy Act (FERPA) through its Apps for Education suite of tools. For what specific practice did students sue the company?

Answer 14

Scanning emails sent to and received by students

Question 15

Which venture would be subject to the requirements of Section 5 of the Federal Trade Commission Act?

A. A local nonprofit charity’s fundraiser
B. An online merchant’s free shipping offer
C. A national bank’s no-fee checking promotion
D. A city bus system’s frequent rider program

Answer 15

B. An online merchant’s free shipping offer

Question 16

An organization self-certified under Privacy Shield must, upon request by an individual, do what?

Answer 16

Provide the identities of third parties with whom the organization shares personal information.

Question 17

Which of the following federal agencies does NOT enforce the Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA)?

A. The Office of the Comptroller of the Currency
B. The Consumer Financial Protection Bureau
C. The Department of Health and Human Services
D. The Federal Trade Commission

Answer 17

C. The Department of Health and Human Services

Question 18

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer’s data handling practices.
The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: “Please act immediately by identifying all personal data received from our company.”
This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup’s rapid market penetration.
As the Company’s data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

At this stage of the investigation, what should the data privacy leader review first?

Answer 18

Prevailing regulation on this subject

Question 19

Upon review, the data privacy leader discovers that the Company’s documented data inventory is obsolete. What is the data privacy leader’s next best source of information to aid the investigation?

Answer 19

Lists of all customers, sorted by country

Question 20

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer’s data handling practices.
The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: “Please act immediately by identifying all personal data received from our company.”
This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup’s rapid market penetration.
As the Company’s data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

Under the General Data Protection Regulation (GDPR), how would the U.S.-based startup company most likely be classified?

Answer 20

A data controller.

Why?
The GDPR defines a data controller as the entity that determines the purposes, conditions, and means of the processing of personal data. In the given scenario, the US-based startup company is selling a new gaming application and would likely be considered a data controller as it determines the purposes and means of processing personal data of its users.

Question 21

Under the GDPR, the complainant’s request regarding her personal information is known as what?

Answer 21

Right to Be Forgotten

(GDPR doesn’t use the term “removal”)

Question 22

In which situation would a policy of “no consumer choice” or “no option” be expected?

Answer 22

When a customer’s street address is shared with a shipping company

“For example, a consumer who orders a product online expects their personal information to be shared with the shipping company, the credit card processor, and others who are engaged in fulfilling the transactions. The consumer does not expect to have to sign an opt-in or be offered an opt-out option for the shipping company to learn the address”

Question 23

What is the main challenge financial institutions face when managing user preferences?

Answer 23

Ensuring that preferences are applied consistently across channels and platforms

Question 24

A large online bookseller decides to contract with a vendor to manage Personal Information (PI). What is the least important factor for the company to consider when selecting the vendor?

Answer 24

The vendor’s employee retention rates

Question 25

In which situation is a company operating under the assumption of implied consent?

A. An employer contacts the professional references provided on an applicant’s resume
B. An online retailer subscribes new customers to an e-mail list by default
C. A landlord uses the information on a completed rental application to run a credit report
D. A retail clerk asks a customer to provide a zip code at the check-out counter

Answer 25

A. An employer contacts the professional references provided on an applicant’s resume

Question 26

All of the following are tasks in the “Discover” phase of building an information management program EXCEPT?

A. Facilitating participation across departments and levels
B. Developing a process for review and update of privacy policies
C. Deciding how aggressive to be in the use of personal information
D. Understanding the laws that regulate a company’s collection of information

Answer 26

Developing a process for review and update of privacy policies

(This is part of the “build” phase)

Question 27

Which of the following describes the most likely risk for a company developing a privacy policy with standards that are much higher than its competitors?

Answer 27

Being more closely scrutinized for any breaches of policy

Question 28

If an organization certified under Privacy Shield wants to transfer personal data to a third party acting as an agent, the organization must ensure the third party does all of the following EXCEPT?

A. Uses the transferred data for limited purposes
B. Provides the same level of privacy protection as the organization
C. Notifies the organization if it can no longer meet its requirements for proper data handling
D. Enters a contract with the organization that states the third party will process data according to the consent agreement

Answer 28

D. Enters a contract with the organization that states the third party will process data according to the consent agreement

Question 29

What was the original purpose of the Federal Trade Commission Act?

Answer 29

To enforce antitrust laws

“The FTC was founded in 1914 to enforce antitrust laws, and its general consumer protection mission was established by a statutory change in 1938.”

Question 30

Matt went into his son’s bedroom one evening and found him stretched out on his bed typing on his laptop.
“Doing your homework?” Matt asked hopefully.
“No,” the boy said. “I’m filling out a survey.”
Matt looked over his son’s shoulder at his computer screen. “What kind of survey?”
“It’s asking questions about my opinions.”
“Let me see,” Matt said, and began reading the list of questions that his son had already answered. “It’s asking your opinions about the government and citizenship. That’s a little odd. You’re only ten.”
Matt wondered how the web link to the survey had ended up in his son’s email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.
To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer questions about his favorite games and toys.
Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son’s inbox, and he decided it was time to report the incident to the proper authorities.
Based on the incident, the FTC’s enforcement actions against the marketer would most likely include what violation?

A. Intruding upon the privacy of a family with young children.
B. Collecting information from a child under the age of thirteen.
C. Failing to notify of a breach of children’s private information.
D. Disregarding the privacy policy of the children’s marketing industry.

Answer 30

B. Collecting information from a child under the age of thirteen.

Question 31

How does Matt come to the decision to report the marketer’s activities?

Answer 31

The marketer failed to make an adequate attempt to provide Matt with information

Question 32

How could the marketer have best changed its privacy management program to meet COPPA “Safe Harbor” requirements?

Answer 32

By participating in an approved self-regulatory program

FTC COPPA Safe Harbor applies to approval of self-regulatory programs, not something as specific as individual email contents.

Question 33

What important action should a health care provider take if the she wants to qualify for funds under the Health Information Technology for Economic and Clinical Health Act (HITECH)?

Answer 33

Make electronic health records (EHRs) part of regular care

Question 34

All of the following organizations are specified as covered entities under the Health Insurance Portability and Accountability Act (HIPAA) EXCEPT?

A. Healthcare information clearinghouses
B. Pharmaceutical companies
C. Healthcare providers
D. Health plans

Answer 34

B. Pharmaceutical companies

Question 35

A covered entity suffers a ransomware attack that affects the personal health information (PHI) of more than 500 individuals. According to Federal law under HIPAA, which of the following would the covered entity NOT have to report the breach to?

A. Department of Health and Human Services
B. The affected individuals
C. The local media
D. Medical providers

Answer 35

Medical providers

Following a breach of unsecured protected health information, covered entities must provide notification of the breach to affected individuals, the Secretary, and, in certain circumstances, to the media. In addition, business associates must notify covered entities if a breach occurs at or by the business associate.

Question 36

What consumer protection did the Fair and Accurate Credit Transactions Act (FACTA) require?

Answer 36

The truncation of account numbers on credit card receipts

Question 37

Who has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA)?

Answer 37

The Consumer Financial Protection Bureau

Question 38

Under the Fair and Accurate Credit Transactions Act (FACTA), what is the most appropriate action for a car dealer holding a paper folder of customer credit reports?

Answer 38

To follow the Disposal Rule by having the reports shredded

Question 39

When may a financial institution share consumer information with non-affiliated third parties for marketing purposes?

Answer 39

After disclosing information-sharing practices to customers and after giving them an opportunity to opt out.

Question 40

What are banks required to do under the Gramm-Leach-Bliley Act (GLBA)?

Answer 40

Offer an Opt-Out before transferring PI to an unaffiliated third party for the latter’s own use

Question 41

Declan has just started a job as a nursing assistant in a radiology department at Woodland Hospital. He has also started a program to become a registered nurse.
Before taking this career path, Declan was vaguely familiar with the Health Insurance Portability and Accountability Act (HIPAA). He now knows that he must help ensure the security of his patients’ Protected Health Information (PHI). Therefore, he is thinking carefully about privacy issues.
On the morning of his first day, Declan noticed that the newly hired receptionist handed each patient a HIPAA privacy notice. He wondered if it was necessary to give these privacy notices to returning patients, and if the radiology department could reduce paper waste through a system of one-time distribution.
He was also curious about the hospital’s use of a billing company. He questioned whether the hospital was doing all it could to protect the privacy of its patients if the billing company had details about patients’ care.
On his first day Declan became familiar with all areas of the hospital’s large radiology department. As he was organizing equipment left in the halfway, he overheard a conversation between two hospital administrators. He was surprised to hear that a portable hard drive containing non-encrypted patient information was missing. The administrators expressed relief that the hospital would be able to avoid liability. Declan was surprised, and wondered whether the hospital had plans to properly report what had happened.
Despite Declan’s concern about this issue, he was amazed by the hospital’s effort to integrate Electronic Health Records (EHRs) into the everyday care of patients. He thought about the potential for streamlining care even more if they were accessible to all medical facilities nationwide.
Declan had many positive interactions with patients. At the end of his first day, he spoke to one patient, John, whose father had just been diagnosed with a degenerative muscular disease. John was about to get blood work done, and he feared that the blood work could reveal a genetic predisposition to the disease that could affect his ability to obtain insurance coverage. Declan told John that he did not think that was possible, but the patient was wheeled away before he could explain why. John plans to ask a colleague about this.
In one month, Declan has a paper due for one his classes on a health topic of his choice. By then, he will have had many interactions with patients he can use as examples. He will be pleased to give credit to John by name for inspiring him to think more carefully about genetic testing.
Although Declan’s day ended with many questions, he was pleased about his new position.
What is the most likely way that Declan might directly violate the Health Insurance Portability and Accountability Act (HIPAA)?

Answer 41

By ignoring the conversation about a potential breach

Question 42

How can the radiology department address Declan’s concern about paper waste and still comply with the Health Insurance Portability and Accountability Act (HIPAA)?

Answer 42

Direct patients to the correct area of the hospital website

Question 43

Based on the scenario, what is the most likely way Declan’s supervisor would answer his question about the hospital’s use of a billing company?

Answer 43

By pointing out that contracts are in place to help ensure the observance of minimum security standards

Question 44

Which entities must comply with the Telemarketing Sales Rule?

Answer 44

For-profit organizations and for-profit telefunders regarding charitable solicitations

Question 45

Under the Telemarketing Sales Rule, what characteristics of consent must be in place for an organization to acquire an exception to the Do-Not-Call rules for a particular consumer?

Answer 45

The consent must be in writing, must contain the number to which calls can be made and must be signed

Question 46

When does the Telemarketing Sales Rule require an entity to share a do-not-call request across its organization?

Answer 46

When a call is not the result of an error or other unforeseen cause

Question 47

Within what time period must a commercial message sender remove a recipient’s address once they have asked to stop receiving future e-mail?

Answer 47

10 days

Question 48

A student has left high school and is attending a public postsecondary institution. Under what condition may a school legally disclose educational records to the parents of the student without consent?

Answer 48

If the student is still a dependent for tax purposes

Question 49

In what way does the “Red Flags Rule” under the Fair and Accurate Credit Transactions Act (FACTA) relate to the owner of a grocery store who uses a money wire service?

Answer 49

It does not apply because the owner is not a creditor

the red flags rule revolves around protecting identity theft and the grocery store is not a financial entity

Question 50

Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Answer 50

Financial institutions must help ensure a customer’s understanding of products and services

Question 51

What is a violation of the the Family Educational Rights and Privacy Act of 1974 (FERPA)?

Answer 51

A K-12 assessment vendor obtains a student’s signed essay about her hometown from her school to use as an exemplar for public release

FERPA protects the privacy of students’ educational records and generally prohibits the disclosure of personally identifiable information from those records without the student’s consent.

Question 52

According to FERPA, when can a school disclose records without a student’s consent?

Answer 52

If the disclosure is to provide transcripts to a school where a student intends to enroll

Question 53

What is the main purpose of the CAN-SPAM Act?

Answer 53

To ensure that organizations respect individual rights when using electronic advertising

Question 54

The Video Privacy Protection Act of 1988 restricted which of the following?

A. Which purchase records of audio visual materials may be disclosed
B. When downloading of copyrighted audio visual materials is allowed
C. When a user’s viewing of online video content can be monitored
D. Who advertisements for videos and video games may target

Answer 54

A. Which purchase records of audio visual materials may be disclosed

Question 55

The Cable Communications Policy Act of 1984 requires which activity?

A. Delivery of an annual notice detailing how subscriber information is to be used
B. Destruction of personal information a maximum of six months after it is no longer needed
C. Notice to subscribers of any investigation involving unauthorized reception of cable services
D. Obtaining subscriber consent for disseminating any personal information necessary to render cable services

Answer 55

Delivery of an annual notice detailing how subscriber information is to be used

Question 56

What is the main purpose of requiring marketers to use the Wireless Domain Registry?

Answer 56

To prevent unauthorized emails to mobile devices

Question 57

You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo’s business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth’s security measures.
A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals – ones that exposed the PHI of public figures including celebrities and politicians.
During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual’s ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient’s attorney has submitted a discovery request for the ePHI exposed in the breach.

What is the most significant reason that the U.S. Department of Health and Human Services (HHS) might impose a penalty on HealthCo?

Answer 57

Because HealthCo did not conduct due diligence to verify or monitor CloudHealth’s security measures

Question 58

What is the most effective kind of training CloudHealth could have given its employees to help prevent this type of data breach?

Answer 58

A. Training on techniques for identifying phishing attempts

Question 59

Of the safeguards required by the HIPAA Security Rule, which of the following is NOT at issue due to HealthCo’s actions?

Answer 59

C. Physical Safeguards

A - In the scenario, HealthCo failed to conduct due diligence on CloudHealth, which indicates a lapse in administrative safeguards.
B - In the scenario, it’s mentioned that the PHI was not encrypted by CloudHealth, which pertains to technical safeguards.
C - These are physical measures, policies, and procedures to protect electronic information systems and related buildings and equipment from natural and environmental hazards, and unauthorized intrusion. The scenario doesn’t specifically mention any issues related to physical access or environmental threats to the ePHI.
D - Security safeguard is not required by the HIPPA Security Rule so this option would be eliminated

Question 60

how should HealthCo’s best response to the attorney’s discovery request?

Answer 60

Respond with a request for satisfactory assurances such as a qualified protective order

A covered entity may disclose PHI subject to a discovery request if satisfactory assurances are provided. An assurance is satisfactory under HIPAA if the parties seeking the request for information have agreed to a qualified protective order and have submitted it to the court, or if the party seeking the information has requested a qualified protective order from the court.

Question 61

What type of information would an organization generally NOT be required to disclose to law enforcement?

Answer 61

Personal health information under the HIPAA Privacy Rule

Under the HIPAA Privacy Rule, covered entities are not typically required to disclose personal health information (PHI) to law enforcement unless there is a specific reason as defined by the rule (e.g., a court order, warrant, or certain administrative requests).

Question 62

A law enforcement agency subpoenas the ACME telecommunications company for access to text message records of a person suspected of planning a terrorist attack. The company had previously encrypted its text message records so that only the suspect could access this data.

What law did ACME violate by designing the service to prevent access to the information by a law enforcement agency?

Answer 62

CALEA

To amend title 18, United States Code, to make clear a telecommunications carrier’s duty to cooperate in the interception of communications for Law Enforcement purposes, and for other purposes.

Question 63

What practice do courts commonly require in order to protect certain personal information on documents, whether paper or electronic, that is involved in litigation?

Answer 63

Redaction

Question 64

What is an exception to the Electronic Communications Privacy Act of 1986 ban on interception of wire, oral and electronic communications?

Answer 64

Where one of the parties has given consent

Under federal law, interception is permitted if a person is the party to the call or if one of the parties has given consent

Question 65

What was the original purpose of the Foreign Intelligence Surveillance Act?

Answer 65

To further define a framework for authorizing wiretaps by the executive branch for national security purposes under Article II of the Constitution.

FISA establishes procedures for the physical and electronic surveillance and collection of foreign intelligence information between foreign powers and agents of foreign powers suspected of espionage or terrorism. It allows the government to obtain surveillance warrants from a special court, the Foreign Intelligence Surveillance Court (FISC), rather than from a regular court.

Question 66

What practice does the USA FREEDOM Act NOT authorize?

Answer 66

The bulk collection of telephone data and internet metadata

Question 67

What practices does the USA FREEDOM Act authorize?

Answer 67

Emergency exceptions that allow the government to target roamers

An increase in the maximum penalty for material support to terrorism

An extension of the expiration for roving wiretaps

Question 68

Why was the Privacy Protection Act of 1980 drafted?

Answer 68

To respond to police searches of newspaper facilities

PPA was drafted to respond to police physical searches of traditional newspaper facilities.

Question 69

The rules for “e-discovery” mainly prevent what?

Answer 69

The loss of information due to poor data retention practices

One of the primary objectives of e-discovery rules is to prevent the loss or destruction of information that may be relevant to a legal matter. These rules impose obligations on organizations to properly retain and manage their electronic data to ensure its availability when needed for litigation or investigations

Question 70

What do the Civil Rights Act, Pregnancy Discrimination Act, Americans with Disabilities Act, Age Discrimination Act, and Equal Pay Act all have in common?

Answer 70

They require employers not to discriminate against certain classes when employees use personal information

Question 71

Which is an exception to the general prohibitions on telephone monitoring that exist under the U.S. Wiretap Act?

Answer 71

Ordinary course of business exception

Question 72

Larry has become increasingly dissatisfied with his telemarketing position at SunriseLynx, and particularly with his supervisor, Evan. Just last week, he overheard Evan mocking the state’s Do Not Call list, as well as the people on it. “If they were really serious about not being bothered,” Evan said, “They’d be on the national DNC list. That’s the only one we’re required to follow. At SunriseLynx, we call until they ask us not to.”
Bizarrely, Evan requires telemarketers to keep records of recipients who ask them to call “another time.” This, to Larry, is a clear indication that they don’t want to be called at all. Evan doesn’t see it that way.
Larry believes that Evan’s arrogance also affects the way he treats employees. The U.S. Constitution protects American workers, and Larry believes that the rights of those at SunriseLynx are violated regularly. At first Evan seemed friendly, even connecting with employees on social media. However, following Evan’s political posts, it became clear to Larry that employees with similar affiliations were the only ones offered promotions.
Further, Larry occasionally has packages containing personal-use items mailed to work. Several times, these have come to him already opened, even though this name was clearly marked. Larry thinks the opening of personal mail is common at SunriseLynx, and that Fourth Amendment rights are being trampled under Evan’s leadership.
Larry has also been dismayed to overhear discussions about his coworker, Sadie. Telemarketing calls are regularly recorded for quality assurance, and although Sadie is always professional during business, her personal conversations sometimes contain sexual comments. This too is something Larry has heard Evan laughing about. When he mentioned this to a coworker, his concern was met with a shrug. It was the coworker’s belief that employees agreed to be monitored when they signed on. Although personal devices are left alone, phone calls, emails and browsing histories are all subject to surveillance. In fact, Larry knows of one case in which an employee was fired after an undercover investigation by an outside firm turned up evidence of misconduct. Although the employee may have stolen from the company, Evan could have simply contacted the authorities when he first suspected something amiss.
Larry wants to take action, but is uncertain how to proceed.

In what area does Larry have a misconception about private-sector employee rights?

Answer 72

The applicability of federal law

Question 73

Based on the way he uses social media, Evan is susceptible to a lawsuit based on?

Answer 73

Discrimination

Question 74

In regard to telemarketing practices, Evan the supervisor has a misconception regarding?

Answer 74

The relationship of state law to federal law

Question 75

Which of the following best describes private-sector workplace monitoring in the United States?

Answer 75

Employers have broad authority to monitor their employees

Question 76

Which of the following is most likely to provide privacy protection to private-sector employees in the United States?

Answer 76

State law, contract law, and tort law

Question 77

What role does the U.S. Constitution play in the area of workplace privacy?

Answer 77

It provides significant protections to federal and state governments, but not to private-sector employment

Some states, including California, have extended their constitutional rights to privacy to private-sector employees. In general for private-sector actors, however, there is no state action, and no constitutional law governs employment privacy

Question 78

Which action is prohibited under the Electronic Communications Privacy Act of 1986?]

A. Intercepting electronic communications and unauthorized access to stored communications
B. Monitoring all employee telephone calls
C. Accessing stored communications with the consent of the sender or recipient of the message
D. Monitoring employee telephone calls of a personal nature

Answer 78

Intercepting electronic communications and unauthorized access to stored communications

Question 79

What does Title VII of the Civil Rights Act prohibit an employer from asking a job applicant?

Answer 79

Questions about national origin

The Civil Rights Act of 1964 (Title VII) bars discrimination in employment due to race, color, religion, sex and national origin

Question 80

How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?

Answer 80

It required employers to get an employee’s consent in advance of requesting a consumer report for internal investigation purposes

Question 81

Which federal act does NOT contain provisions for preempting stricter state laws?

A. The CAN-SPAM Act
B. The Children’s Online Privacy Protection Act (COPPA)
C. The Fair and Accurate Credit Transactions Act (FACTA)
D. The Telemarketing Consumer Protection and Fraud Prevention Act

Answer 81

The Telemarketing Consumer Protection and Fraud Prevention Act

Question 82

What is commonly required for an entity to be subject to breach notification requirements under most state laws?

Answer 82

The entity must conduct business in the state

Question 83

What is the most likely reason that states have adopted their own data breach notification laws?

Answer 83

Many types of organizations are not currently subject to federal laws regarding breaches

Question 84

Which federal law or regulation preempts state law?

A. Health Insurance Portability and Accountability Act
B. Controlling the Assault of Non-Solicited Pornography and Marketing Act
C. Telemarketing Sales Rule
D. Electronic Communications Privacy Act of 1986

Answer 84

CAN-SPAM preempts state law and states are not allowed to pass stricter laws

Question 85

More than half of U.S. states require telemarketers to?

Answer 85

more than half the states require that telemarketers obtain a license or register with the state

Question 86

What does the Massachusetts Personal Information Security Regulation require as it relates to encryption of personal information?

Answer 86

The encryption of all personal information of Massachusetts residents when stored on portable devices.

Question 87

Which of the following is NOT a principle found in the APEC Privacy Framework?

Answer 87

Privacy by Design

Question 88

What is the most important action an organization can take to comply with the FTC position on retroactive changes to a privacy policy?

Answer 88

Obtaining affirmative consent from its customers.

The FTC wants businesses to obtain affirmative consent from their customers when they make material adverse retroactive changes to their privacy policies.

Question 89

Federal laws establish which of the following requirements for collecting personal information of minors under the age of 13?

Answer 89

Affirmative consent from a minor’s parent or guardian before collecting the minor’s personal information online.

Question 90

If an organization maintains data classified as high sensitivity in the same system as data classified as low sensitivity, which of the following is the most likely outcome?

Answer 90

The impact of an organizational data breach will be more severe than if the data had been segregated.

“Holding all data in one system can increase the consequences of a single breach”

Question 91

Which of the following best describes the ASIA-Pacific Economic Cooperation (APEC) principles?

Answer 91

A bill of rights for individuals seeking access to their personal information.

Question 92

Acme Student Loan Company has developed an artificial intelligence algorithm that determines whether an individual is likely to pay their bill or default. A person who is determined by the algorithm to be more likely to default will receive frequent payment reminder calls, while those who are less likely to default will not receive payment reminders.
Which of the following most accurately reflects the privacy concerns with Acme Student Loan Company using artificial intelligence in this manner?

Answer 92

If the algorithm uses risk factors that impact the automatic decision engine. Acme must ensure that the algorithm does not have a disparate impact on protected classes in the output.

Question 93

Global Manufacturing Co’s Human Resources department recently purchased a new software tool. This tool helps evaluate future candidates for executive roles by scanning emails to see what those candidates say and what is said about them. This provides the HR department with an automated “360 review” that lets them know how the candidate thinks and operates, what their peers and direct reports say about them, and how well they interact with each other.
What is the most important step for the Human Resources Department to take when implementing this new software?

Answer 93

Making sure that the software does not unintentionally discriminate against protected groups.

Question 94

Which of the following would NOT constitute an exception to the authorization requirement under the HIPAA Privacy Rule?

A. Disclosing health information for public health activities.
B. Disclosing health information to file a child abuse report.
C. Disclosing health information needed to treat a medical emergency.
D. Disclosing health information needed to pay a third party billing administrator.

Answer 94

D. Disclosing health information needed to pay a third party billing administrator.

Among the options provided, disclosing health information needed to pay a third party billing administrator would NOT constitute an exception to the authorization requirement under the HIPAA Privacy Rule. Generally, when disclosing health information for payment and healthcare operations purposes, specific patient authorization is not required. However, this exception applies primarily to disclosures made to healthcare providers, health plans, and other entities directly involved in the payment or healthcare operations process.

Question 95

What type of material is exempt from an individual’s right to disclosure under the Privacy Act?

Answer 95

Material reporting investigative efforts to prevent unlawful persecution of an individual.

Investigatory material compiled for law enforcement purposes, other than criminal, is exempt.

Question 96

Which of the following best describes an employer’s privacy-related responsibilities to an employee who has left the workplace?

Answer 96

An employer has a responsibility to maintain the security and privacy of any sensitive employment records retained for a legitimate business purpose.

Question 97

Which law provides employee benefits, but often mandates the collection of medical information?

Answer 97

The Family and Medical Leave Act.

Question 98

Which of the following is an example of federal preemption?

Answer 98

The U.S. Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act prohibiting states from passing laws that impose greater obligations on senders of email marketing.

Question 99

Which of these organizations would be required to provide its customers with an annual privacy notice?

Answer 99

The King County Savings and Loan.

(Assuming it’s a bank)

Question 100

Which entity within the Department of Health and Human Services (HHS) is the primary enforcer of the Health Insurance Portability and Accountability Act (HIPAA) “Privacy Rule”?

Answer 100

Office for Civil Rights.

Question 101

Which of the following best describes how federal anti-discrimination laws protect the privacy of private-sector employees in the United States?

Answer 101

They limit the types of information that employers can collect about employees.

Question 102

Describe the FTC’s authority

Answer 102

The Federal Trade Commission (FTC) is typically recognized as having the broadest authority under the FTC Act to address unfair or deceptive privacy practices.

Question 103

When there was a data breach involving customer personal and financial information at a large retail store, the company’s directors were shocked. However, Roberta, a privacy analyst at the company and a victim of identity theft herself, was not. Prior to the breach, she had been working on a privacy program report for the executives. How the company shared and handled data across its organization was a major concern. There were neither adequate rules about access to customer information nor procedures for purging and destroying outdated data. In her research, Roberta had discovered that even low-level employees had access to all of the company’s customer data, including financial records, and that the company still had in its possession obsolete customer data going back to the 1980s.
Her report recommended three main reforms. First, permit access on an as-needs-to-know basis. This would mean restricting employees’ access to customer information to data that was relevant to the work performed. Second, create a highly secure database for storing customers’ financial information (e.g., credit card and bank account numbers) separate from less sensitive information. Third, identify outdated customer information and then develop a process for securely disposing of it.
When the breach occurred, the company’s executives called Roberta to a meeting where she presented the recommendations in her report. She explained that the company having a national customer base meant it would have to ensure that it complied with all relevant state breach notification laws. Thanks to Roberta’s guidance, the company was able to notify customers quickly and within the specific timeframes set by state breach notification laws.
Soon after, the executives approved the changes to the privacy program that Roberta recommended in her report. The privacy program is far more effective now because of these changes and, also, because privacy and security are now considered the responsibility of every employee.
Based on the problems with the company’s privacy security that Roberta identifies, what is the most likely cause of the breach?

Answer 103

Mishandling of information caused by lack of access controls.

Question 104

Which principle of the Consumer Privacy Bill of Rights, if adopted, would best reform the company’s privacy program?

Answer 104

Consumers have a right to reasonable limits on the personal data that a company retains.

Question 105

What could the company have done differently prior to the breach to reduce their risk?

Answer 105

Implemented a comprehensive policy for accessing customer information.

Question 106

Depending on where Matt lives, the marketer could be prosecuted for violating which of the following?

Answer 106

Unfair and Deceptive Acts and Practices laws.

Question 107

In a case of civil litigation, what might a defendant who is being sued for distributing an employee’s private information face?

Answer 107

An injunction.

Question 108

The U.S. Supreme Court has recognized an individual’s right to privacy over personal issues, such as contraception, by acknowledging which of the following?

Answer 108

A “penumbra” of unenumerated constitutional rights as well as more general protections of due process of law.

Question 109

Based on the 2012 Federal Trade Commission report “Protecting Consumer Privacy in an Era of Rapid Change”, which of the following directives is most important for businesses?

Answer 109

Integrating privacy protections during product development.

Question 110

In March 2012, the FTC released a privacy report that outlined three core principles for companies handling consumer data. What are the three principles?

Answer 110

Simplifying consumer choice.
Practicing Privacy by Design.
Providing greater transparency.

(NOT enhancing security measures)

Question 111

What is a key way that the Gramm-Leach-Bliley Act (GLBA) prevents unauthorized access into a person’s bank account?

Answer 111

By restricting the disclosure of customer account numbers by financial institutions.

Question 112

In what way is the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act intended to help consumers?

Answer 112

By requiring companies to allow consumers to opt-out of future e-mails.

Question 113

What consumer service was the Fair Credit Reporting Act (FCRA) originally intended to provide?

Answer 113

The ability to correct inaccurate credit information.

Question 114

Privacy Is Hiring Inc., a CA-based company, is an online specialty recruiting firm focusing on placing privacy professionals in roles at major companies. Job candidates create online profiles outlining their experience and credentials, and can pay $19.99/month via credit card to have their profiles promoted to potential employers. Privacy Is Hiring Inc. keeps all customer data at rest encrypted on its servers.
Under what circumstances would Privacy Is Hiring Inc., need to notify affected individuals in the event of a data breach?

Answer 114

If the job candidates’ credit card information and the encryption keys were among the information taken.

Question 115

Noah is trying to get a new job involving the management of money. He has a poor personal credit rating, but he has made better financial decisions in the past two years.
One potential employer, Arnie’s Emporium, recently called to tell Noah he did not get a position. As part of the application process, Noah signed a consent form allowing the employer to request his credit report from a consumer reporting agency (CRA). Noah thinks that the report hurt his chances, but believes that he may not ever know whether it was his credit that cost him the job. However, Noah is somewhat relieved that he was not offered this particular position. He noticed that the store where he interviewed was extremely disorganized. He imagines that his credit report could still be sitting in the office, unsecured.
Two days ago, Noah got another interview for a position at Sam’s Market. The interviewer told Noah that his credit report would be a factor in the hiring decision. Noah was surprised because he had not seen anything on paper about this when he applied.
Regardless, the effect of Noah’s credit on his employability troubles him, especially since he has tried so hard to improve it. Noah made his worst financial decisions fifteen years ago, and they led to bankruptcy. These were decisions he made as a young man, and most of his debt at the time consisted of student loans, credit card debt, and a few unpaid bills – all of which Noah is still working to pay off. He often laments that decisions he made fifteen years ago are still affecting him today.
In addition, Noah feels that an experience investing with a large bank may have contributed to his financial troubles. In 2007, in an effort to earn money to help pay off his debt, Noah talked to a customer service representative at a large investment company who urged him to purchase stocks. Without understanding the risks, Noah agreed. Unfortunately, Noah lost a great deal of money.
After losing the money, Noah was a customer of another financial institution that suffered a large security breach. Noah was one of millions of customers whose personal information was compromised. He wonders if he may have been a victim of identity theft and whether this may have negatively affected his credit.
Noah hopes that he will soon be able to put these challenges behind him, build excellent credit, and find the perfect job.
Consumers today are most likely protected from situations like the one Noah had buying stock because of which federal action or legislation?

Answer 115

Investigations of “abusive” acts and practices under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Question 116

Based on the scenario, which legislation should ease Noah’s worry about his credit report as a result of applying at Arnie’s Emporium?

Answer 116

The Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA).

Question 117

Which federal agency plays a role in privacy policy, but does NOT have regulatory authority?

Answer 117

The Department of Commerce.

Question 118

Which of the following is NOT one of three broad categories of products offered by data brokers, as identified by the U.S. Federal Trade Commission (FTC)?

A. Research (such as information for understanding consumer trends).
B. Risk mitigation (such as information that may reduce the risk of fraud).
C. Location of individuals (such as identifying an individual from partial information).
D. Marketing (such as appending data to customer information that a marketing company already has).

Answer 118

Research (such as information for understanding consumer trends).

Question 119

What information did the Red Flag Program Clarification Act of 2010 add to the original Red Flags rule?

Answer 119

The definition of what constitutes a creditor.

Question 120

Although an employer may have a strong incentive or legal obligation to monitor employees’ conduct or behavior, some excessive monitoring may be considered an intrusion on employees’ privacy? Which of the following is the strongest example of excessive monitoring by the employer?

Answer 120

An employer who installs video monitors in physical locations, such as a changing room, to reduce the risk of sexual harassment.

Question 121

What privacy concept grants a consumer the right to view and correct errors on his or her credit report?

Answer 121

Access.

“Access is the ability to view personal information held by an organization. This may be supplemented by allowing updates or corrections to the information. U.S. laws often provide for access and correction when the information is used for substantive decision-making, such as for credit reports”.

Question 122

A company’s employee wellness portal offers an app to track exercise activity via users’ mobile devices. Which of the following design techniques would most effectively inform users of their data privacy rights and privileges when using the app?

Answer 122

Present a privacy policy to users during the wellness program registration process.

Question 123

Which statement is FALSE regarding the provisions of the Employee Polygraph Protection Act of 1988 (EPPA)?

A. The EPPA requires that employers post essential information about the Act in a conspicuous location.
B. The EPPA includes an exception that allows polygraph tests in professions in which employee honesty is necessary for public safety.
C. Employers are prohibited from administering psychological testing based on personality traits such as honesty, preferences or habits.
D. Employers involved in the manufacture of controlled substances may terminate employees based on polygraph results if other evidence exists.

Answer 123

Employers are prohibited from administering psychological testing based on personality traits such as honesty, preferences or habits.

Question 124

U.S. federal laws protect individuals from employment discrimination based on all of the following EXCEPT?

A. Age.
B. Pregnancy.
C. Marital status.
D. Genetic information.

Answer 124

Pregnancy.

Question 125

Which statute is considered part of U.S. federal privacy law?

A. The Fair Credit Reporting Act.
B. SB 1386.
C. The Personal Information Protection and Electronic Documents Act.
D. The e-Privacy Directive.

Answer 125

The Fair Credit Reporting Act.

Question 126

In 2012, the White House and the FTC both issued reports advocating a new approach to privacy enforcement that can best be described as what?

Answer 126

C. Comprehensive.

Question 127

The FTC often negotiates consent decrees with companies found to be in violation of privacy principles. How does this benefit both parties involved?

Answer 127

It spares the expense of going to trial.

Question 128

When developing a company privacy program, which of the following relationships will most help a privacy professional develop useful guidance for the organization?

A. Relationships with individuals within the privacy professional community who are able to share expertise and leading practices for different industries.
B. Relationships with clients, vendors, and customers whose data will be primarily collected and used throughout the organizational program.
C. Relationships with company leaders responsible for approving, implementing, and periodically reviewing the corporate privacy program.
D. Relationships with individuals across company departments and at different levels in the organization’s hierarchy.

Answer 128

D. Relationships with individuals across company departments and at different levels in the organization’s hierarchy.

Question 129

The Family Educational Rights and Privacy Act (FERPA) requires schools to do all of the following EXCEPT?

A. Verify the identity of students who make requests for access to their records.
B. Provide students with access to their records within a specified amount of time.
C. Respond to all reasonable student requests regarding explanation of their records.
D. Obtain student authorization before releasing directory information in their records.

Answer 129

D. Obtain student authorization before releasing directory information in their records.

D. Refer to 10.1.5.1 “Right to Access and Review” IAPP page 257.

Question 130

Chanel Hair Studio is a busy high-end hair salon. In an effort to maximize efficiency of its operations and reduce wait times for appointments, Chanel decides to implement artificial intelligence software that will use client profiles and history to predict which clients will likely be late for their appointments. Information used to create the client profile included appointment history, distance from the salon, and any references to being tardy pulled from the client’s social media accounts. If a client is predicted to be late, their appointment will be cancelled within 5 minutes.
Based on the details, what is the biggest potential privacy concern related to Chanel’s use of this new software?

A. Scanning a client’s social media accounts to use in a client profile without notice to the client.
B. Calculating client profile address distance from the salon to determine location from salon to help predict if the client will be late.
C. Using client profile information for any purpose other than setting up an appointment.
D. Assessing client tardiness history with the salon for predictive purposes.

Answer 130

B. Calculating client profile address distance from the salon to determine location from salon to help predict if the client will be late.

Question 131

Which of the following laws is NOT involved in the regulation of employee background checks?

A. The Civil Rights Act.
B. The Gramm-Leach-Bliley Act (GLBA).
C. The U.S. Fair Credit Reporting Act (FCRA).
D. The California Investigative Consumer Reporting Agencies Act (ICRAA).

Answer 131

The Gramm-Leach-Bliley Act (GLBA).

Question 132

Which of the following scenarios would be most likely to violate the Fourth Amendment of the U.S. Constitution with regard to contact tracing?

A. A private employer conducting a voluntary contact-tracing program with its employees.
B. An employer asking employees if they have been diagnosed with or tested for COVID-19 before allowing them to physically enter the workplace.
C. A government program that installs a contact-tracing app on an individual’s phone and collects data after providing notice and obtaining the individual’s consent.
D. A government program that automatically installs a contact-tracing app on an individual’s phone and collects data without obtaining the individual’s consent.

Answer 132

D. A government program that automatically installs a contact-tracing app on an individual’s phone and collects data without obtaining the individual’s consent.

Question 133

What was unique about the action that the Federal Trade Commission took against B.J.’s Wholesale Club in 2005?

Answer 133

It was based on matters of fairness rather than deception.

Question 134

What are the maximum statutory damages for violations of the Fair Credit Reporting Act (FCRA)?

Answer 134

$1,000 per violation

Question 135

A company based in United States receives information about its UK subsidiary’s employees in connection with the centralized HR service it provides.
How can the UK company ensure an adequate level of data protection that would allow the restricted data transfer to continue?

Answer 135

By submitting to the ICO a new application for the UK BCRs using the UK BCR application forms, as their existing authorized EU BCRs are not recognized.

Question 136

The use of cookies on a website by a service provider is generally not deemed a ‘sale’ of personal information by CCPA, as long as which of the following conditions is met?

A. The third party stores personal information to trigger a response to a consumer’s request to exercise their right to opt in.
B. The analytics cookies placed by the service provider are capable of being tracked but cannot be linked to a particular consumer of that business.
C. The service provider retains personal information obtained in the course of providing the services specified in the agreement with the subcontractors.
D. The information collected by the service provider is necessary to perform debugging and the business and service provider have entered into an appropriate agreement.

Answer 136

The service provider retains personal information obtained in the course of providing the services specified in the agreement with the subcontractors.

Question 137

What is not considered a method of obtaining verifiable parental consent before collecting, using or disclosing personal information from children under the Children’s Online Privacy Protection Act (COPPA) of 1998?

Answer 137

Sending a text message to the parent explaining the intended uses of the information.

Question 138

Edward Snowden’s revelations regarding government programs collecting massive amounts of information about U.S. citizens and noncitizens led to the passage of which law?

Answer 138

USA FREEDOM Act

Question 139

In 2011, the FTC announced a settlement with Google regarding its social networking service Google Buzz. The FTC alleged that in the process of launching the service, the company did all of the following EXCEPT?

A. Violated its own privacy policies.
B. Engaged in deceptive trade practices.
C. Failed to comply with Safe Harbor principles.
D. Failed to employ sufficient security safeguards.

Answer 139

Failed to employ sufficient security safeguards.

Question 140

What is a U.S. surveillance program authorized under Section 702 of the Foreign Intelligence Surveillance Act Amendments Act?

Answer 140

Upstream

Question 141

Which of the following federal agencies does NOT have regulatory authority related to privacy?

A. Consumer Financial Protection Bureau.
B. U.S. Department of Transportation.
C. U.S. Department of Commerce.
D. Federal Reserve

Answer 141

U.S. Department of Commerce.

Question 142

ABC Corp. is a consumer-facing business that uses a number of vendors to help operate its business, such as payment processors, cloud service providers, and an e-commerce platform.

If ABC Corp. were subject to the California Consumer Privacy Act (CCPA), what would it have to do in order to avoid having its transfer of personal information to vendors be considered a “sale” of personal information?

Answer 142

Enter into a contract with the vendors containing restrictions on what they can do with the personal information.

Question 143

In a data sharing arrangement, which of the following organizations would determine the rules that apply to the processing of the data being shared?

A. The business associate.
B. The hosting provider.
C. The data processor.
D. The data controller.

Answer 143

The data controller.

Question 144

Your company’s most brilliant engineer develops a new Artificial Intelligence (AI) technology he calls OXO-2576. The engineer wants to begin using it to analyze all of the data your company collects about its customers. As the company’s privacy professional, you have some privacy concerns about using AI technology with customer data.

Which of the following is the best recommendation to offer the company?

Answer 144

De-identify the data collected by the AI technology so it cannot be linked to any individuals.

Question 145

Which of the following would best provide a sufficient consumer disclosure under the Fair Credit Reporting Act (FCRA) prior to a consumer report being obtained for employment purposes?

A. A standalone notice document.
B. A notice provision in a mailed offer letter.
C. A notice provision in an electronic employment application.
D. A verbal notice provided with a conditional offer of employment.

Answer 145

A standalone notice document.

Question 146

The federal Driver’s Privacy Protection Act (DPPA) prohibits the release or use of what type of personal information?

Answer 146

Information obtained from State motor vehicle departments in connection with a motor vehicle record.

Question 147

The Clarifying Lawful Overseas Use of Data (CLOUD) Act is primarily intended to do what?

Answer 147

Update the legal mechanisms through which federal law enforcement may obtain data that service providers maintain in a foreign country.

Question 148

Which of the following most accurately describes the regulatory status of pandemic contact-tracing apps in the United States?

A. Contact tracing is covered exclusively under the Health Insurance Portability and Accountability Act (HIPAA).
B. Contact tracing is regulated by the U.S. Centers for Disease Control and Prevention (CDC).
C. Contact tracing is subject to a patchwork of federal and state privacy laws.
D. Contact tracing is not regulated in the United States.

Answer 148

Contact tracing is subject to a patchwork of federal and state privacy laws.

Question 149

Jane is a U.S. citizen and a senior software engineer at California-based Jones Labs, a major software supplier to the U.S. Department of Defense and other U.S. federal agencies. Jane’s manager, Patrick, is a French citizen who has been living in California for over a decade. Patrick has recently begun to suspect that Jane is an insider secretly transmitting trade secrets to foreign intelligence. Unbeknownst to Patrick, the FBI has already received a hint from anonymous whistleblower, and jointly with the National Security Agency is investigating Jane’s possible implication in a sophisticated foreign espionage campaign.

Ever since the pandemic, Jane has been working from home. To complete her daily tasks she uses her corporate laptop, which after each login conspicuously provides notice that the equipment belongs to Jones Labs and may be monitored according to the enacted privacy policy and employment handbook. Jane also has a corporate mobile phone that she uses strictly for business, the terms of which are defined in her employment contract and elaborated upon in her employee handbook. Both the privacy policy and the employee handbook are revised annually by a reputable California law firm specializing in privacy law. Jane also has a personal iPhone that she uses for private purposes only.

Jones Labs has its primary data center in San Francisco, which is managed internally by Jones Labs engineers. The secondary data center, managed by Amazon AWS, is physically located in the UK for disaster recovery purposes. Jones Labs’ mobile devices backup is managed by a mid-sized mobile defense company located in Denver, which physically stores the data in Canada to reduce costs. Jones Labs MS Office documents are securely stored in a Microsoft Office 365 data center based in Ireland. Manufacturing data of Jones Labs is stored in Taiwan and managed by a local supplier that has no presence in the U.S.

Under Section 702 of FISA, the NSA may do which of the following without a Foreign Intelligence Surveillance Court warrant?

A. Compel AWS to disclose Jane’s email communications with a Taiwanese national residing in Taiwan.
B. Compel AWS to disclose email communications between two Chinese nationals residing in the EU.
C. Compel Microsoft to disclose Patrick’s Skype calls with a Brazilian national living in Peru.
D. Compel Jane to disclose the PIN code for her corporate mobile phone.

Answer 149

Compel AWS to disclose email communications between two Chinese nationals residing in the EU.

(Section 702 of the FISA Amendments Act of 2008 allows for the targeted surveillance of foreign persons located outside of the US.)

Question 150

Before inspecting any GPS geolocation data from Jane’s corporate mobile phone, Patrick should first do what?

A. Obtain prior consent from Jane pursuant to the Telephone Consumer Protection Act
B. Revise emerging workplace privacy best practices with a reputable advocacy organization.
C. Obtain a subpoena from law enforcement, or a court order, directing Jones Labs to collect the GPS geolocation data.
D. Ensure that such activity is permitted under Jane’s employment contract or the company’s employee privacy policy.

Answer 150

Ensure that such activity is permitted under Jane’s employment contract or the company’s employee privacy policy.

Question 151

When storing Jane’s fingerprint for remote authentication. Jones Labs should consider legality issues under which of the following?

A. The Privacy Rule of the HITECH Act.
B. The California IoT Security Law (SB 327).
C. The applicable state law such as Illinois BIPA.
D. The federal Genetic Information Nondiscrimination Act (GINA).

Answer 151

The applicable state law such as Illinois BIPA.

Question 152

A financial services company install “bossware” software on its employees’ remote computers to monitor performance. The software logs screenshots, mouse movements, and keystrokes to determine whether an employee is being productive. The software can also enable the computer webcams to record video footage.

Which of the following would best support an employee claim for an intrusion upon seclusion tort?

A. The webcam is enabled to record video any time the computer is turned on.
B. The company creates and saves a biometric template for each employee based upon keystroke dynamics.
C. The software automatically sends a notification to a supervisor any time the employee’s mouse is dormant for more than five minutes.
D. The webcam records video of an employee using a company laptop to perform personal business while at a coffee shop during work hours.

Answer 152

The webcam is enabled to record video any time the computer is turned on.

Question 153

You are the privacy manager at a privately-owned U.S. company that produces an increasingly popular fitness app called GetFit. After users create an account with their contact information, the app uses a smartphone and a system of connected smartwatch sensors to track users when they exercise. It collects information on location when users walk or run outdoors, as well as general health information (such as heart rate) during all exercise sessions. The app also collects credit card information for payment of the monthly subscription fee.

One Friday, the company’s security team contacts you about the discovery of malware on their media server. The team assures you that there was no user data on this server and that, in any case, they found the malware before any damage could be done.

However, on Monday morning the security team contacts you again, this time with the information that they have discovered the same malware on the company’s payments server. They suspect it likely that users’ credit card information was taken by the attacker. By Monday evening, the situation has gotten dramatically worse, as the security team has also discovered this malware on the company’s database server, an infiltration that gives the attacker access to users’ profile, health and location information.

After coordinating with the security team, you are asked to meet with senior management and advise them on the company’s obligations in connection with the incident. The Chief Financial Officer asks, “If we decide to notify all our users of this incident, are we obligated to provide any of them with a free credit monitoring offer?” The General Counsel wants to know if providing this notice and offer will help the company avoid liability.

Who, if anyone, would the company have to notify immediately following the security team’s first call to the privacy manager on Friday?

Answer 153

It would not have to notify anyone since there was no unauthorized access of user data that would be considered personal information under applicable state laws.

Question 154

Based on the information the security team provides on Monday morning, what is the company’s notification obligation?

Answer 154

The company must notify its bank and the card brands under its PCI obligations, and potentially provide notice to individuals and state authorities. depending on state law.

Question 155

How does the Monday evening discovery of the malware on the company’s database server alter the company’s notification obligations, if at all?

Answer 155

This discovery requires notice also be provided to the FTC since a health app is subject to the Health Breach Notification Rule.

Question 156

What answer should be given to the Chief Financial Officer’s question?

Answer 156

“Yes, we must include a free credit monitoring offer since this incident involves credit card information.”

Question 157

What answer should be given to the General Counsel?

Answer 157

“Even if we provide notice, we may still face liability due to mishandling the data and causing potential harm to users.”

Question 158

Once a breach has been definitively established, which task should be prioritized next?

Answer 158

Determining what was responsible for the breach and neutralizing the threat.

Question 159

Your company, which sells its products in the United States and the European Union, is seeking to purchase cloud storage from a multinational cloud storage provider. The engineering team at your company wants to set up cloud data centers from the storage provider in both the United States and Germany.

Which of the following contractual provisions should be included in the contract to ensure the security of the personal data being stored in both data center locations?

Answer 159

A purpose limitation provision that requires the data, including personal information, to only be used for the contracted purposes.

Question 160

When designing contact tracing apps in relation to COVID-19 or any other diagnosed virus, all of the following privacy measures should be considered EXCEPT?

A. Data retention.
B. Use limitations.
C. Opt-out choice.
D. User confidentiality.

Answer 160

Opt-out choice.

Question 161

Under HIPAA and the HITECH Act, business associates who receive Protected Health Information (PHI) from covered entities must execute Business Associate Agreements and also?

Answer 161

Have any subcontractors enter into agreements.

Question 162

Which of the following practices is NOT a key component of a data ethics framework?

A. Automated decision-making.
B. Preferability testing.
C. Data governance.
D. Auditing.

Answer 162

Preferability testing.

Question 163

Under the Driver’s Privacy Protection Act (DPPA), which of the following parties would require consent of an individual in order to obtain his or her Department of Motor Vehicle information?

Answer 163

Marketers wishing to distribute bulk materials.

Question 164

As a result of the Schrems II decision and CJEU opinion, what would the preferred course of action be if a Section 702 disclosure related to a foreign entity is required?

Answer 164

Seek the advice of outside counsel and conduct a transfer impact assessment.

Question 165

Which of the following conditions would NOT be sufficient to excuse an entity from providing breach notification under state law?

A. If the data involved was encrypted.
B. If the data involved was accessed but not exported.
C. If the entity was subject to the GLBA Safeguards Rule.
D. If the entity followed internal notification procedures compatible with state law.

Answer 165

If the entity was subject to the GLBA Safeguards Rule.

Question 166

The CFO of a pharmaceutical company is duped by a phishing email and discloses many of the company’s employee personnel files to an online predator. The files include employee contact information, job applications, performance reviews, discipline records, and job descriptions.

Which of the following state laws would be an affected employee’s best recourse against the employer?

Answer 166

The state personnel record review statute.