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Free IAPP CIPP-E Exam Questions and Answer
NEW QUESTION # 62
There are three domains of security covered by Article 32 of the GDPR that apply to both the controller and the processor. These include all of the following EXCEPT?
- A. Remedial security.
- B. Consent management and withdrawal.
- C. Incident detection and response.
- D. Preventative security.
Answer: B
NEW QUESTION # 63
If a company chooses to ground an international data transfer on the contractual route, which of the following is NOT a valid set of standard contractual clauses?
- A. Decision 2007/72/EC (EU processor to non-EU or EEA controller).
- B. Decision 2001/497/EC (EU controller to non-EU or EEA controller).
- C. Decision 2004/915/EC (EU controller to non-EU or EEA controller).
- D. Decision 2010/87/EU (Non-EU or EEA processor from EU controller).
Answer: A
Explanation:
This is not a valid set of standard contractual clauses because it does not correspond to any of the decisions adopted by the European Commission under the GDPR or the previous Data Protection Directive 95/46. The correct decision for EU processor to non-EU or EEA controller is Decision 2010/87/EU, which was amended by Decision 2004/915/EC. Decision 2007/72/EC is actually related to the recognition of the adequacy of the protection of personal data in Switzerland. References:
* Free CIPP/E Study Guide, page 18, section 3.4.2
* Standard contractual clauses for international transfers, section 1.1
* Standard Contractual Clauses (SCC), section 2.1
* Decision 2007/72/EC
NEW QUESTION # 64
As per the GDPR, which legal basis would be the most appropriate for an online shop that wishes to process personal data for the purpose of fraud prevention?
- A. Protection of the interests of the data subjects.
- B. Legitimate interest
- C. Performance of a contact
- D. Consent
Answer: B
Explanation:
According to the GDPR, legitimate interest is one of the possible legal bases for processing personal data, which means that the data controller has a valid reason to process the data that is not overridden by the interests or rights of the data subject1. The GDPR specifically mentions fraud prevention as a potential legitimate interest of the data controller, as it serves both the interests of the online shop and the data subjects who may be victims of fraud1. However, the data controller must conduct a balancing test to ensure that the legitimate interest is not outweighed by the potential harm or intrusion to the data subject's privacy1. The data controller must also provide clear and transparent information to the data subject about the processing of their data for fraud prevention purposes, and respect their right to object to such processing1.
The other options are incorrect because:
A) Protection of the interests of the data subjects is not a legal basis for processing personal data, but rather a condition for processing special categories of personal data under Article 9 of the GDPR2. Moreover, fraud prevention does not necessarily protect the interests of the data subjects, but rather the interests of the online shop and the general public.
B) Performance of a contract is a legal basis for processing personal data that is necessary for the execution or fulfilment of a contract between the data controller and the data subject2. However, fraud prevention is not strictly necessary for the performance of a contract, as it is not directly related to the delivery of goods or services that the data subject has purchased from the online shop.
D) Consent is a legal basis for processing personal data that requires the data subject to give their informed, specific, and freely given agreement to the processing of their data for one or more purposes2. However, consent is not the most appropriate legal basis for fraud prevention, as it may not be freely given by the data subject, who may feel pressured to agree to the processing of their data in order to complete their purchase. Moreover, consent may not be reliable or effective for fraud prevention, as it can be withdrawn by the data subject at any time, or may be given by a fraudster who is not the legitimate owner of the data.
NEW QUESTION # 65
How does the GDPR now define "processing"?
- A. Any act involving the collecting and recording of personal data.
- B. Any operation or set of operations performed on personal data or on sets of personal data.
- C. Any operation or set of operations performed by automated means on personal data or on sets of personal data.
- D. Any use or disclosure of personal data compatible with the purpose for which the data was collected.
Answer: B
Explanation:
The GDPR defines processing as "any operation or set of operations which is performed on personal data or on sets of personal data, whether or not by automated means, such as collection, recording, organisation, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure or destruction" (Article 4(2)). This is a broad definition that covers almost any activity involving personal data, regardless of the method or means used. The GDPR also specifies that processing should be lawful, fair and transparent, and should respect the principles of data protection by design and by default (Article 5). References: CIPP/E Certification - International Association of Privacy Professionals, Free CIPP/E Study Guide - International Association of Privacy Professionals, [GDPR - EUR-Lex] I hope this helps. If you have any other questions, please let me know. #
NEW QUESTION # 66
Which judicial body makes decisions on actions taken by individuals wishing to enforce their rights under EU law?
- A. Court of Justice of European Union
- B. European Data Protection Board
- C. Court of Auditors
- D. European Court of Human Rights
Answer: A
Explanation:
The Court of Justice of the European Union (CJEU) is the judicial body of the EU that makes decisions on issues of EU law and enforces European decisions either in respect to actions taken by the European Commission against a member state or actions taken by individuals to enforce their rights under EU law. The CJEU consists of two courts: the Court of Justice and the General Court. The CJEU ensures the uniform interpretation and application of EU law across the EU and settles disputes between EU institutions, member states, and individuals.
The other options are not correct, as they are not the judicial bodies that make decisions on actions taken by individuals wishing to enforce their rights under EU law. The Court of Auditors is the EU's independent external auditor that checks the legality and regularity of the EU's revenue and expenditure, and the soundness of its financial management. The European Court of Human Rights (ECHR) is an international court that oversees the European Convention on Human Rights and Fundamental Freedoms of 1950. The ECHR is not linked to the EU institutions, and it covers human rights laws across Europe, including in many non-EU countries. The European Data Protection Board (EDPB) is an independent body that ensures the consistent application of the GDPR and issues opinions on various aspects of data protection, but it does not have judicial authority.
Reference:
Court of Justice of the European Union
Court of Justice of the European Union - International Association of Privacy Professionals Judicial enforcement of EU law | European Foundation for the Improvement of Living and Working Conditions Competences of the Court of Justice of the European Union
NEW QUESTION # 67
Under the GDPR, which essential pieces of information must be provided to data subjects before collecting their personal data?
- A. The identity and contact details of the controller and the reasons the data is being collected.
- B. The name/s of relevant government agencies involved and the steps needed for revising the data.
- C. The contact information of the controller and a description of the retention policy.
- D. The authority by which the controller is collecting the data and the third parties to whom the data will be sent.
Answer: A
Explanation:
The GDPR requires that data subjects are provided with certain information when their personal data are collected, either from the data subject themselves or from another source12. This information includes, among other things, the identity and contact details of the controller (and, where applicable, of the controller's representative and the data protection officer), and the purposes of the processing for which the personal data are intended as well as the legal basis for the processing34. This information is necessary to ensure fair and transparent processing of personal data, and to enable data subjects to exercise their rights under the GDPR5.
Therefore, option C is the correct answer, as it contains two of the essential pieces of information that must be provided to data subjects before collecting their personal data. Options A, B and D are incorrect, as they do not include all the required information or include information that is not mandatory. References: 1: Article
13 of the GDPR 2: Article 14 of the GDPR 3: Article 13(1)(a) and of the GDPR 4: Article 14(1)(a) and of the GDPR 5: Recital 60 of the GDPR
NEW QUESTION # 68
Under Article 58 of the GDPR, which of the following describes a power of supervisory authorities in European Union (EU) member states?
- A. The authority to select penalties when a controller is found guilty in a court of law.
- B. The right to access data for investigative purposes.
- C. The ability to enact new laws by executive order.
- D. The discretion to carry out goals of elected officials within the member state.
Answer: B
NEW QUESTION # 69
When may browser settings be relied upon for the lawful application of cookies?
- A. When it is impossible to bypass the choices made by users in their browser settings.
- B. When users are aware of the ability to adjust their settings.
- C. When users are provided with information about which cookies have been set.
- D. When a user rejects cookies that are strictly necessary.
Answer: A
Explanation:
According to the ICO guidance on the use of cookies and similar technologies1, browser settings and other control mechanisms can be relied upon for the lawful application of cookies only if they meet the following conditions:
They are designed to protect users' privacy and provide them with control over the use of cookies and similar technologies; They are prominent and easy to use, and do not require users to take unnecessary steps or provide unnecessary information; They are specific and granular enough to allow users to express their preferences for different types and purposes of cookies and similar technologies; They are sufficiently informed and clear about the cookies and similar technologies that will be set or accessed, and the purposes for which they will be used; They are regularly reviewed and updated to reflect any changes in the cookies and similar technologies that are used or the purposes for which they are used; They are not overridden or circumvented by other software or settings that may interfere with users' choices; They provide an effective means of withdrawing consent at any time.
Therefore, browser settings and other control mechanisms can be a valid way of obtaining consent for cookies and similar technologies, but only if they meet these high standards and ensure that users have a real and meaningful choice over the use of cookies and similar technologies on their devices. Reference: 1 How do we comply with the cookie rules? | ICO. Available at: 4 (Accessed: 11 December 2023).
NEW QUESTION # 70
An employee of company ABCD has just noticed a memory stick containing records of client data, including their names, addresses and full contact details has disappeared. The data on the stick is unencrypted and in clear text. It is uncertain what has happened to the stick at this stage, but it likely was lost during the travel of an employee. What should the company do?
- A. Invoke the "disproportionate effort" exception under Article 33 to postpone notifying data subjects until more information can be gathered.
- B. Immediately notify all the customers of the company that their information has been accessed by an unauthorized person.
- C. Launch an investigation and if nothing is found within one month, notify the data protection supervisory authority.
- D. Notify as soon as possible the data protection supervisory authority that a data breach may have taken place.
Answer: D
Explanation:
The GDPR requires that in the case of a personal data breach, the controller shall without undue delay and, where feasible, not later than 72 hours after having become aware of it, notify the personal data breach to the supervisory authority competent in accordance with Article 55, unless the personal data breach is unlikely to result in a risk to the rights and freedoms of natural persons1. A personal data breach means a breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, personal data transmitted, stored or otherwise processed2. In this scenario, the company ABCD is the controller of the client data, and the loss of the memory stick containing unencrypted and clear text personal data is a personal data breach that may pose a risk to the rights and freedoms of the data subjects, such as identity theft, fraud, financial loss, or reputational damage. Therefore, the company ABCD should notify the data protection supervisory authority as soon as possible, and provide the information specified in Article 33(3) of the GDPR, such as the nature of the breach, the categories and number of data subjects and personal data records concerned, the likely consequences of the breach, and the measures taken or proposed to address the breach1. Option A is the correct answer, as it reflects the obligation of the controller under the GDPR. Options B, C and D are incorrect, as they do not comply with the GDPR requirements. Option B would delay the notification beyond the 72-hour deadline, which could result in administrative fines or other sanctions3. Option C would misuse the "disproportionate effort" exception, which only applies to the communication of the breach to the data subjects, not to the notification to the supervisory authority, and only when the controller has implemented appropriate technical and organisational protection measures, such as encryption, that render the personal data unintelligible to any person who is not authorised to access it4. Option D would prematurely notify the customers of the company without first notifying the supervisory authority, and without assessing the level of risk and the necessity of such communication, which should be done in consultation with the supervisory authority5. References: 1: Article 33(1) of the GDPR 2: Article 4 (12) of the GDPR 3: Article 83(4)(a) of the GDPR 4: Article 34(3)(a) of the GDPR 5: Article 34(1) and (2) of the GDPR
NEW QUESTION # 71
When would a data subject NOT be able to exercise the right to portability?
- A. When the processing is based on consent.
- B. When the processing is necessary to perform a task in the exercise of authority vested in the controller.
- C. When the data was supplied to the controller by the data subject.
- D. When the processing is carried out pursuant to a contract with the data subject.
Answer: B
NEW QUESTION # 72
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?
- A. If Natural Insight receives express contractual instructions from BHealthy to use its data for improving its algorithms.
- B. If Natural Insight agrees to be fully liable for its use of BHealthy's customer information in its product improvement activities.
- C. If Natural Insight satisfies the transparency requirement by notifying BHealthy's customers of its plans to use their information for its product improvement activities.
- D. If Natural Insight uses BHealthy's data for improving price point predictions only for BHealthy.
Answer: A
Explanation:
According to the General Data Protection Regulation (GDPR), a data processor is a natural or legal person, agency, public authority, or any other body who processes personal data on behalf of a data controller. A data controller is a natural or legal person, agency, public authority, or any other body who, alone or jointly with others, determines the purposes and means of the processing of personal data. The GDPR imposes specific obligations and responsibilities on both data controllers and data processors, and requires them to enter into a written contract or other legal act that sets out the subject matter, duration, nature, and purpose of the processing, as well as the obligations and rights of the data controller.
In this scenario, BHealthy is the data controller, as it determines the purpose and means of collecting and sharing its customer information with Natural Insight. Natural Insight is the data processor, as it processes the customer information on behalf of BHealthy for the purpose of determining the price point for BHealthy's new sunscreens. However, Natural Insight also intends to use the customer information for its own purpose of improving its algorithms, which may not be aligned with BHealthy's purpose or instructions. This may constitute a breach of the data processing contract and the GDPR, as the data processor must only process the personal data on documented instructions from the data controller, unless required to do so by EU or member state law (Article 28(3)(a) of the GDPR).
Therefore, the only case in which Natural Insight's use of BHealthy's data for improvement of its algorithms would be considered data processor activity is if Natural Insight receives express contractual instructions from BHealthy to use its data for improving its algorithms. This would mean that BHealthy has given its consent and authorization for Natural Insight to process the data for that specific purpose, and that Natural Insight is acting in accordance with BHealthy's instructions. In this case, Natural Insight would still be bound by the data processing contract and the GDPR, and would have to comply with the other obligations and requirements of a data processor, such as ensuring the security of the data, respecting the conditions for engaging another processor, assisting the data controller in ensuring compliance with the GDPR, and deleting or returning the data to the data controller after the end of the service.
The other options are not valid cases for data processor activity, as they do not involve the data controller's instructions or consent. If Natural Insight uses BHealthy's data for improving price point predictions only for BHealthy, it may still be processing the data for a different purpose than the one for which it was collected and shared, and without BHealthy's knowledge or approval. If Natural Insight agrees to be fully liable for its use of BHealthy's customer information in its product improvement activities, it may still be violating the data processing contract and the GDPR, as it is not acting on behalf of the data controller, but for its own benefit. If Natural Insight satisfies the transparency requirement by notifying BHealthy's customers of its plans to use their information for its product improvement activities, it may still be infringing the data controller's rights and obligations, as it is not the data controller's role to inform the data subjects of the processing activities, and it may not have a lawful basis for processing the data for its own purpose.
Reference:
GDPR
Data Controllers and Processors - GDPR EU
Who does the UK GDPR apply to? | ICO
What Activities Count as Processing Under the GDPR?
What constitutes data processing? - European Commission
NEW QUESTION # 73
According to the GDPR, how is pseudonymous personal data defined?
- A. Data that has been encrypted or is subject to other technical safeguards.
- B. Data that can no longer be attributed to a specific data subject, with no possibility of re-identifying the data.
- C. Data that can no longer be attributed to a specific data subject without the use of additional information kept separately.
- D. Data that has been rendered anonymous in such a manner that the data subject is no longer identifiable.
Answer: C
Explanation:
Pseudonymisation is a technique that replaces, removes or transforms information that identifies individuals, and keeps that information separate from the rest of the data. Pseudonymised data is still personal data under the GDPR, because it can be re-identified with the use of additional information. However, pseudonymisation can reduce the risks of processing personal data and help comply with data protection principles and obligations. Pseudonymisation is different from anonymisation, which is the process of irreversibly transforming personal data so that the data subject is no longer identifiable. Reference:
GDPR Article 4(5), which defines pseudonymisation.
GDPR Recital 26, which explains the difference between pseudonymisation and anonymisation.
EDPS blog post, which provides an overview of pseudonymisation and its benefits.
ICO guidance, which gives practical advice on how to implement pseudonymisation.
NEW QUESTION # 74
A data controller appoints a data protection officer. Which of the following conditions would NOT result in an infringement of Articles 37 to 39 of the GDPR?
- A. If the data protection officer also manages the marketing budget.
- B. If the data protection officer is provided by the data processor.
- C. If the data protection officer lacks ISO 27001 auditor certification.
- D. If the data protection officer receives instructions from the data controller.
Answer: C
Explanation:
Reference:
A data controller appointing a data protection officer who lacks ISO 27001 auditor certification would not result in an infringement of Articles 37 to 39 of the GDPR. According to Article 37 (5) of the GDPR, the data protection officer must be designated on the basis of professional qualities and, in particular, expert knowledge of data protection law and practices and the ability to fulfil the tasks referred to in Article 39 1. However, the GDPR does not specify any formal qualifications or certifications that the data protection officer must have, and leaves it to the discretion of the controller or the processor to determine the level of expertise required, depending on the complexity and sensitivity of the data processing activities 2. Therefore, the lack of ISO 27001 auditor certification, which is a standard for information security management systems, does not necessarily mean that the data protection officer is not qualified or competent for the role.
The other options are incorrect because they would result in an infringement of Articles 37 to 39 of the GDPR. According to Article 37 (6) of the GDPR, the data protection officer may be a staff member of the controller or the processor, or fulfil the tasks on the basis of a service contract 1. However, the data protection officer must be independent and report directly to the highest management level of the controller or the processor 3. Therefore, if the data protection officer is provided by the data processor, there may be a conflict of interest or a lack of autonomy, which would violate Article 38 (3) and (6) of the GDPR 4.
According to Article 38 (6) of the GDPR, the data protection officer may fulfil other tasks and duties, provided that they do not result in a conflict of interests 4. However, managing the marketing budget would likely involve a conflict of interests, as the data protection officer would have to oversee and advise on the data processing activities related to marketing, which may not be compatible with his or her role as a data protection officer 5. Therefore, if the data protection officer also manages the marketing budget, this would infringe Article 38 (6) of the GDPR 4.
According to Article 38 (3) of the GDPR, the data protection officer must not receive any instructions regarding the exercise of his or her tasks 4. The data protection officer must act in an independent manner and perform the tasks assigned by the GDPR, such as informing and advising the controller or the processor and the employees, monitoring compliance, cooperating with the supervisory authority, and acting as the contact point for data subjects and the supervisory authority 6. Therefore, if the data protection officer receives instructions from the data controller, this would infringe Article 38 (3) of the GDPR 4. Reference: 1: Article 37 of the GDPR 2: Guidelines on Data Protection Officers ('DPOs') 3: Article 38 (2) of the GDPR 4: Article 38 of the GDPR 5: Data protection officer (DPO) | European Commission 6: Article 39 of the GDPR
NEW QUESTION # 75
Why is advisable to avoid consent as a legal basis for an employer to process employee data?
- A. Data protection laws do not apply to processing of employee data.
- B. Employee data can only be processed if there is an approval from the data protection officer.
- C. An employer might have difficulty obtaining consent from every employee.
- D. Consent may not be valid if the employee feels compelled to provide it.
Answer: B
NEW QUESTION # 76
What is the consequence if a processor makes an independent decision regarding the purposes and means of processing it carries out on behalf of a controller?
- A. The processor will be liable to pay compensation to affected data subjects
- B. The controller will be required to demonstrate that the unauthorized processing negatively affected one or more of the parties involved
- C. The processor will be considered to be a controller in respect of the processing concerned
- D. The controller will be liable to pay an administrative fine
Answer: A
Explanation:
Reference https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection- regulation-gdpr/key-definitions/controllers-and-processors/
NEW QUESTION # 77
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