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

QUESTION NO: 1
SCENARIO
Please use the following to answer the next question:
BHealthy, a company based in Italy, is ready to launch a new line of natural products, with a focus on sunscreen. The last step prior to product launch is for BHealthy to conduct research to decide how extensively to market its new line of sunscreens across Europe. To do so, BHealthy teamed up with Natural Insight, a company specializing in determining pricing for natural products. BHealthy decided to share its existing customer information - name, location, and prior purchase history - with Natural Insight. Natural Insight intends to use this information to train its algorithm to help determine the price point at which BHealthy can sell its new sunscreens.
Prior to sharing its customer list, BHealthy conducted a review of Natural Insight's security practices and concluded that the company has sufficient security measures to protect the contact information. Additionally, BHealthy's data processing contractual terms with Natural Insight require continued implementation of technical and organization measures. Also indicated in the contract are restrictions on use of the data provided by BHealthy for any purpose beyond provision of the services, which include use of the data for continued improvement of Natural Insight's machine learning algorithms.
In which case would Natural Insight's use of BHealthy's data for improvement of its algorithms be considered data processor activity?
Correct Answer: B
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QUESTION NO: 2
In the event of a data breach, which type of information are data controllers NOT required to provide to either the supervisory authorities or the data subjects?
Correct Answer: B
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QUESTION NO: 3
Which of the following describes a mandatory requirement for a group of undertakings that wants to appoint a single data protection officer?
Correct Answer: B
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QUESTION NO: 4
A news website based m (he United Slates reports primarily on North American events The website is accessible to any user regardless of location, as the website operator does not block connections from outside of the U.S. The website offers a pad subscription that requires the creation of a user account; this subscription can only be paid in U.S. dollars.
Which of the following explains why the website operator, who is the responsible for all processing related to account creation and subscriptions, is NOT required to comply with the GDPR?
Correct Answer: C
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QUESTION NO: 5
In relation to third countries and international organizations, which of the following shall, along with the supervisory authorities, take appropriate steps to develop international cooperation mechanisms for the enforcement of data protection legislation?
Correct Answer: C
QUESTION NO: 6
Which institution has the power to adopt findings that confirm the adequacy of the data protection level in a non-EU country?
Correct Answer: D
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QUESTION NO: 7
SCENARIO
Please use the following to answer the next question:
Sandy recently joined Market4U, an advertising technology company founded in 2016, as their VP of Privacy and Data Governance. Through her first initiative in conducting a data inventory, Sandy learned that Market4U maintains a list of 19 million global contacts that were collected throughout the course of Market4U's existence. Knowing the risk of having such a large amount of data, Sandy wanted to purge all contacts that were entered into Market4U's systems prior to May 2018, unless such contacts had a more recent interaction with Market4U content. However, Dan, the VP of Sales, informed Sandy that all of the contacts provide useful information regarding successful marketing campaigns and trends in industry verticals for Market4U's clients.
Dan also informed Sandy that he had wanted to focus on gaining more customers within the sports and entertainment industry. To assist with this behavior, Market4U's marketing team decided to add several new fields to Market4U's website forms, including forms for downloading white papers, creating accounts to participate in Market4U's forum, and attending events. Such fields include birth date and salary.
What should Sandy give as feedback to Dan and the marketing team regarding the new fields Dan wants to add to Market4U's forms?
Correct Answer: A
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QUESTION NO: 8
What obligation does a data controller or processor have after appointing a data protection officer?
Correct Answer: A
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QUESTION NO: 9
SCENARIO
Please use the following to answer the next question:
The fitness company Vigotron has recently developed a new app called M-Health, which it wants to market on its website as a free download. Vigotron's marketing manager asks his assistant Emily to create a webpage that describes the app and specifies the terms of use. Emily, who is new at Vigotron, is excited about this task.
At her previous job she took a data protection class, and though the details are a little hazy, she recognizes that Vigotron is going to need to obtain user consent for use of the app in some cases. Emily sketches out the following draft, trying to cover as much as possible before sending it to Vigotron's legal department.
Registration Form
Vigotron's new M-Health app makes it easy for you to monitor a variety of health-related activities, including diet, exercise, and sleep patterns. M-Health relies on your smartphone settings (along with other third-party apps you may already have) to collect data about all of these important lifestyle elements, and provide the information necessary for you to enrich your quality of life. (Please click here to read a full description of the services that M-Health provides.) Vigotron values your privacy. The M-Heaith app allows you to decide which information is stored in it, and which apps can access your data. When your device is locked with a passcode, all of your health and fitness data is encrypted with your passcode. You can back up data stored in the Health app to Vigotron's cloud provider, Stratculous. (Read more about Stratculous here.) Vigotron will never trade, rent or sell personal information gathered from the M-Health app. Furthermore, we will not provide a customer's name, email address or any other information gathered from the app to any third- party without a customer's consent, unless ordered by a court, directed by a subpoena, or to enforce the manufacturer's legal rights or protect its business or property.
We are happy to offer the M-Health app free of charge. If you want to download and use it, we ask that you first complete this registration form. (Please note that use of the M-Health app is restricted to adults aged 16 or older, unless parental consent has been given to minors intending to use it.)
* First name:
* Surname:
* Year of birth:
* Email:
* Physical Address (optional*):
* Health status:
*If you are interested in receiving newsletters about our products and services that we think may be of interest to you, please include your physical address. If you decide later that you do not wish to receive these newsletters, you can unsubscribe by sending an email to [email protected] or send a letter with your request to the address listed at the bottom of this page.
Terms and Conditions
1.Jurisdiction. [...]
2.Applicable law. [...]
3.Limitation of liability. [...]
Consent
By completing this registration form, you attest that you are at least 16 years of age, and that you consent to the processing of your personal data by Vigotron for the purpose of using the M-Health app. Although you are entitled to opt out of any advertising or marketing, you agree that Vigotron may contact you or provide you with any required notices, agreements, or other information concerning the services by email or other electronic means. You also agree that the Company may send automated emails with alerts regarding any problems with the M-Health app that may affect your well being.
If a user of the M-Health app were to decide to withdraw his consent, Vigotron would first be required to do what?
Correct Answer: D
QUESTION NO: 10
Pursuant to the EDPB Guidelines 8/2022, all of the following criteria must be considered when identifying a lead supervisory authority of a controller EXCEPT?
Correct Answer: C
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QUESTION NO: 11
Which statement provides an accurate description of a directive?
Correct Answer: B
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QUESTION NO: 12
An organisation receives a request multiple times from a data subject seeking to exercise his rights with respect to his own personal data. Under what condition can the organisation charge the data subject for processing the request?
Correct Answer: D
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QUESTION NO: 13
In addition to the European Commission, who can adopt standard contractual clauses, assuming that all required conditions are met?
Correct Answer: A
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QUESTION NO: 14
SCENARIO
Please use the following to answer the next question:
Louis, a long-time customer of Bedrock Insurance, was involved in a minor car accident a few months ago.
Although no one was hurt, Louis has been plagued by texts and calls from a company called Accidentable offering to help him recover compensation for personal injury. Louis has heard about insurance companies selling customers' data to third parties, and he's convinced that Accidentable must have gotten his information from Bedrock Insurance.
Louis has also been receiving an increased amount of marketing information from Bedrock, trying to sell him their full range of their insurance policies.
Perturbed by this, Louis has started looking at price comparison sites on the internet and has been shocked to find that other insurers offer much cheaper rates than Bedrock, even though he has been a loyal customer for many years. When his Bedrock policy comes up for renewal, he decides to switch to Zantrum Insurance.
In order to activate his new insurance policy, Louis needs to supply Zantrum with information about his No Claims bonus, his vehicle and his driving history. After researching his rights under the GDPR, he writes to ask Bedrock to transfer his information directly to Zantrum. He also takes this opportunity to ask Bedrock to stop using his personal data for marketing purposes.
Bedrock supplies Louis with a PDF and XML (Extensible Markup Language) versions of his No Claims Certificate, but tells Louis it cannot transfer his data directly to Zantrum as this is not technically feasible.
Bedrock also explains that Louis's contract included a provision whereby Louis agreed that his data could be used for marketing purposes; according to Bedrock, it is too late for Louis to change his mind about this. It angers Louis when he recalls the wording of the contract, which was filled with legal jargon and very confusing.
In the meantime, Louis is still receiving unwanted calls from Accidentable Insurance. He writes to Accidentable to ask for the name of the organization that supplied his details to them. He warns Accidentable that he plans to complain to the data protection authority, because he thinks their company has been using his data unlawfully. His letter states that he does not want his data being used by them in any way.
Accidentable's response letter confirms Louis's suspicions. Accidentable is Bedrock Insurance's wholly owned subsidiary, and they received information about Louis's accident from Bedrock shortly after Louis submitted his accident claim. Accidentable assures Louis that there has been no breach of the GDPR, as Louis' s contract included, a provision in which he agreed to share his information with Bedrock's affiliates for business purposes.
Louis is disgusted by the way in which he has been treated by Bedrock, and writes to them insisting that all his information be erased from their computer system.
Which statement accurately summarizes Bedrock's obligation in regard to Louis's data portability request?
Correct Answer: A
QUESTION NO: 15
Please select4 of the 7 options below. No partial credit will be given.
Which of the following are considered core data protection principles under the GDPR?
Correct Answer: D,E,F,G
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