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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q137-Q142):

NEW QUESTION # 137
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: D

NEW QUESTION # 138
Which of the following best describes private-sector workplace monitoring in the United States?

A. Judgments in private lawsuits have severely limited the monitoring of employees
B. U.S. federal law restricts monitoring only to industries for which it is necessary
C. Most employees are protected from workplace monitoring by the U.S. Constitution
D. Employers have broad authority to monitor their employees

Answer: D

NEW QUESTION # 139
What is the main challenge financial institutions face when managing user preferences?

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

Answer: C

NEW QUESTION # 140
SCENARIO
Please use the following to answer the next QUESTION:
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?

A. As a data manager
B. As a data controller
C. As a data processor
D. As a data supervisor

Answer: C

Explanation:
The data privacy leader needs to identify all the personal data that the Company has received from the retailer, as well as the purposes, retention periods, and sharing practices of such data. Since the data inventory is obsolete, the data privacy leader cannot rely on it to provide accurate and complete information. Therefore, the next best source of information is to interview the key marketing personnel who are responsible for the partnership with the retailer and the use of the personal data. The marketing personnel can provide insights into the data flows, the data categories, the data processing activities, and the data protection measures that the Company has implemented. They can also help the data privacy leader to locate the relevant documents, contracts, and records that can support the investigation. References: [IAPP CIPP/US Study Guide], Chapter 5:
Data Management, p. 97-98; IAPP Privacy Tech Vendor Report, Data Mapping and Inventory, p. 9-10.

NEW QUESTION # 141
SCENARIO
Please use the following to answer the next question;
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 Secunty 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 togin 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 delense 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 When storing Jane's fingerprint for remote authentication. Jones Labs should consider legality issues under which of the following9

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

Answer: D

Explanation:
When storing biometric data, such as fingerprints, organizations in the U.S. must comply with state-specific biometric privacy laws if they operate in states that regulate biometric information. The most prominent of these laws is the Illinois Biometric Information Privacy Act (BIPA), but similar laws also exist or are developing in other states, such as Texas and Washington.
Key Considerations for Storing Biometric Data:
* Illinois Biometric Information Privacy Act (BIPA):BIPA (740 ILCS 14) is a leading and highly influential state law regulating the collection, storage, and use of biometric information. It requires organizations to:
* Obtain informed, written consent before collecting biometric data.
* Establish a publicly available policy governing the retention and destruction of biometric data.
* Use a reasonable standard of care to protect biometric data from unauthorized access or use.
* Prohibit the sale or transfer of biometric data without consent.
* California and Biometric Data:While California's California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) provide general protections for personal information, including biometric data, they do not have the specific consent and handling requirements that BIPA does. Nevertheless, California residents have rights related to access, deletion, and the sale of biometric information.
Explanation of Options:
* A. The Privacy Rule of the HITECH Act:The HITECH Act applies to the protection of protected health information (PHI) under HIPAA. While the Privacy Rule regulates healthcare-related information, it does not apply to Jane's biometric data used for remote authentication unless it is tied to PHI. This scenario is unrelated to healthcare, so this answer is incorrect.
* B. The California IoT Security Law (SB 327):California's IoT Security Law primarily focuses on ensuring security requirements for connected devices. It does not regulate the collection or storage of biometric information. This is not relevant to the question.
* C. The applicable state law such as Illinois BIPA:This is correct. State biometric privacy laws, such as Illinois BIPA, explicitly govern the collection, storage, and use of biometric data like fingerprints.
Organizations like Jones Labs must ensure compliance with such laws, including obtaining consent and properly securing and destroying biometric information.
* D. The federal Genetic Information Nondiscrimination Act (GINA):GINA prohibits discrimination based on genetic information in employment and health insurance. However, it does not regulate the storage of biometric data like fingerprints. This is not applicable to this scenario.
Best Practices for Compliance:
Jones Labs should:
* Understand the applicable state biometric laws: If Jane resides in Illinois or other states with biometric laws, Jones Labs must comply with those specific legal requirements.
* Obtain informed consent: Ensure that employees like Jane sign a written consent form before storing their fingerprints for authentication.
* Secure biometric data: Use strong encryption and other security measures to protect the biometric information.
* Define retention and destruction policies: Clearly establish how long biometric data will be stored and how it will be destroyed after its purpose is fulfilled.
References from CIPP/US Materials:
* Illinois Biometric Information Privacy Act (BIPA): Sets the standard for biometric privacy regulations in the U.S.
* California Consumer Privacy Act (CCPA): Protects personal information but does not specifically regulate biometric data like fingerprints with the same rigor as BIPA.
* IAPP CIPP/US Certification Textbook: Discusses the emergence of state-specific biometric privacy laws and their applicability in different scenarios.

NEW QUESTION # 142
......

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