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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q71-Q76):

NEW QUESTION # 71
What is the main challenge financial institutions face when managing user preferences?

A. Developing a mechanism for opting out that is easy for their consumers to navigate
B. Ensuring they are in compliance with numerous complex state and federal privacy laws
C. Determining the legal requirements for sharing preferences with their affiliates
D. Ensuring that preferences are applied consistently across channels and platforms

Answer: D

Explanation:
Financial institutions (FIs) collect and process a large amount of personal data from their customers, such as name, address, account number, transaction history, credit score, etc. Customers may have different preferences regarding how their data is used, shared, or protected by the FIs. For example, some customers may want to receive marketing offers from the FIs or their affiliates, while others may opt out of such communications. Some customers may prefer to access their accounts online, while others may use mobile apps, phone calls, or physical branches. Some customers may want to enable biometric authentication, while others may rely on passwords or PINs.
Managing these diverse and dynamic user preferences is a challenge for FIs, as they need to ensure that they respect and honor the choices of their customers across all the channels and platforms they use. This requires FIs to have arobust and integrated system that can capture, store, update, and apply user preferences consistently and accurately. Failing to do so may result in customer dissatisfaction, loss of trust, regulatory fines, or legal disputes.12 References: 1: The Top Three Digital Challenges Faced By Financial Institutions And How To Overcome Them3, paragraph 42: IAPP CIPP/US Certified Information Privacy Professional Study Guide, page 127.

NEW QUESTION # 72
Which of the following is most likely to provide privacy protection to private-sector employees in the United States?

A. The Federal Trade Commission Act (FTC Act)
B. Amendments one, four, and five of the U.S. Constitution
C. State law, contract law, and tort law
D. The U.S. Department of Health and Human Services (HHS)

Answer: C

Explanation:
Unlike many other countries, the United States does not have a comprehensive federal law that regulates the privacy of private-sector employees. Instead, the privacy protection of employees depends largely on state law, contract law, and tort law. State law may provide specific rights and remedies for employees regarding issues such as drug testing, background checks, electronic monitoring, social media access, and genetic information. Contract law may create obligations and expectations for employers and employees based on written or implied agreements, such as employment contracts, employee handbooks, or collective bargaining agreements. Tort law may allow employees to sue their employers for invasion of privacy, such as intrusion upon seclusion, public disclosure of private facts, false light, or appropriation of name or likeness. The other options are less likely to provide privacy protection to private-sector employees in the United States. The FTC Act primarily regulates the privacy practices of businesses that collect and use consumer data, not employee data. The U.S. Constitution only protects individuals from unreasonable searches and seizures by the government, not by private employers. The HHS only enforces the HIPAA Privacy Rule, which applies to covered entities and business associates that handle protected health information, not to all private-sector employers. References:
* IAPP CIPP/US Study Guide, Chapter 6: Workplace Privacy
* Privacy Rights of Employees Using Workplace Computers in the United States
* Employee Privacy Laws

NEW QUESTION # 73
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. Notifies the organization if it can no longer meet its requirements for proper data handling
B. Provides the same level of privacy protection as the organization
C. Enters a contract with the organization that states the third party will process data according to the consent agreement
D. Uses the transferred data for limited purposes

Answer: C

Explanation:
According to the Privacy Shield Framework, an organization that transfers personal data to a third party acting as an agent must ensure that the agent does all of the following1:
* Uses the transferred data only for limited and specified purposes;
* Provides the same level of privacy protection as is required by the Privacy Shield Principles;
* Takes reasonable and appropriate steps to ensure that the agent effectively processes the personal information transferred in a manner consistent with the organization's obligations under the Principles;
* Requires the agent to notify the organization if it makes a determination that it can no longer meet its obligation to provide the same level of protection as is required by the Principles;
* Upon notice, takes reasonable and appropriate steps to stop and remediate unauthorized processing; and
* Provides a summary or a representative copy of the relevant privacy provisions of its contract with that agent to the Department of Commerce upon request.
Therefore, the only option that is not required by the Privacy Shield Framework is D. Enters a contract with the organization that states the third party will process data according to the consent agreement. While the organization must obtain the individual's consent for certain types of data transfers, such as those involving sensitive data or onward transfers to controllers, the organization does not have to include the consent agreement in the contract with the agent. The contract must, however, ensure that the agent will process the data in accordance with the individual's choices and expectations, as well as the Privacy Shield Principles2.
References: 1: Privacy Shield Framework3, Section 3 (b); 2: Privacy Shield Framework3, Section 2 (b) and; 3: Privacy Shield Framework.

NEW QUESTION # 74
In which situation is a company operating under the assumption of implied consent?

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

Answer: B

Explanation:
* Implied consent is a form of consent that is inferred from the actions or inactions of the data subject, rather than explicitly expressed by the data subject1.
* Implied consent is generally considered a valid basis for processing personal data under certain circumstances, such as when the processing is necessary for the performance of a contract, the legitimate interests of the data controller, or the reasonable expectations of the data subject2.
* However, implied consent may not be sufficient for processing sensitive personal data, such as health, biometric, or genetic data, or for sending marketing communications, depending on the applicable laws and regulations2.
* In the U.S., there is no comprehensive federal privacy law that regulates the use of implied consent for data processing, but there are sector-specific laws and state laws that may impose different requirements and limitations3.
* Based on the scenarios given in the question, the situation that is most likely to involve a company operating under the assumption of implied consent is A. An employer contacts the professional references provided on an applicant's resume.
* This is because the employer may reasonably infer that the applicant has consented to the contact of the references by voluntarily providing their information on the resume, and that the contact is necessary for the legitimate interest of the employer to verify the applicant's qualifications and suitability for the job4.
* The other situations may not involve implied consent, but rather require explicit consent or provide opt- out options for the data subjects, depending on the type and purpose of the data processing and the relevant laws and regulations5 . For example:
* B. An online retailer subscribes new customers to an e-mail list by default. This may violate the CAN-SPAM Act, which requires online marketers to obtain affirmative consent from the recipients before sending commercial e-mail messages, and to provide a clear and conspicuous opt-out mechanism in every message5.
* C. A landlord uses the information on a completed rental application to run a credit report. This may violate the Fair Credit Reporting Act, which requires landlords to obtain written authorization from the applicants before obtaining their consumer reports, and to provide them with a copy of the report and a summary of their rights if they take any adverse action based on the report.
* D. A retail clerk asks a customer to provide a zip code at the check-out counter. This may violate the California Song-Beverly Credit Card Act, which prohibits retailers from requesting and recording personal identification information from customers who pay with a credit card, unless the information is necessary for a special purpose, such as shipping or fraud prevention.
References: 1: Implied Consent 2: Consent 3: U.S. Private-Sector Privacy (CIPP/US) 4: [Reference Checks:
Tips for Job Applicants and Employers] 5: [CAN-SPAM Act: A Compliance Guide for Business] : [Using Consumer Reports: What Landlords Need to Know] : [California Song-Beverly Credit Card Act] : [Reference Checks: Tips for Job Applicants and Employers] : [CAN-SPAM Act: A Compliance Guide for Business] :
[Using Consumer Reports: What Landlords Need to Know] : [California Song-Beverly Credit Card Act]

NEW QUESTION # 75
SCENARIO
Please use the following to answer the next QUESTION
Otto is preparing a report to his Board of Directors at Filtration Station, where he is responsible for the privacy program. Filtration Station is a U.S. company that sells filters and tubing products to pharmaceutical companies for research use. The company is based in Seattle, Washington, with offices throughout the U.S.
and Asia. It sells to business customers across both the U.S. and the Asia-Pacific region. Filtration Station participates in the Cross-Border Privacy Rules system of the APEC Privacy Framework.
Unfortunately, Filtration Station suffered a data breach in the previous quarter. An unknown third party was able to gain access to Filtration Station's network and was able to steal data relating to employees in the company' s Human Resources database, which is hosted by a third-party cloud provider based in the U.S. The HR data is encrypted. Filtration Station also uses the third-party cloud provider to host its business marketing contact database. The marketing database was not affected by the data breach. It appears that the data breach was caused when a system administrator at the cloud provider stored the encryption keys with the data itself.
The Board has asked Otto to provide information about the data breach and how updates on new developments in privacy laws and regulations apply to Filtration Station. They are particularly concerned about staying up to date on the various U.S. state laws and regulations that have been in the news, especially the California Consumer Privacy Act (CCPA) and breach notification requirements.
The Board has asked Otto whether the company will need to comply with the new California Consumer Privacy Law (CCPA). What should Otto tell the Board?

A. That business contact information could be considered personal information governed by CCPA.
B. That the company is governed by CCPA, but does not need to take any additional steps because it follows CPBR.
C. That CCPA will apply to the company only after the California Attorney General determines that it will enforce the statute.
D. That CCPA only applies to companies based in California, which exempts the company from compliance.

Answer: A

Explanation:
The CCPA applies to any business that collects personal information of California residents, regardless of where the business is located1. The CCPA defines personal information broadly as any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household2. This could include business contact information, such as name, email address, phone number, or job title, if it is linked to a specific individual3. Therefore, Otto should tell the Board that business contact information could be considered personal information governed by CCPA, and that the company may need to comply with the CCPA requirements, such as providing notice, honoring consumer rights requests, and implementing reasonable security measures4. References:
* CIPP/US Practice Questions (Sample Questions), Question 124, Answer C, Explanation C.
* IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 6, Section 6.2, p. 181-
182.
* California Consumer Privacy Act (CCPA), Section 1798.140, Subsection (o).
* CCPA Compliance Checklist for Businesses, Section 2, Subsection (a).

NEW QUESTION # 76
......

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CIPP-US Reliable Exam Sims, Valid CIPP-US Exam Fee

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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q71-Q76):

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