Best IAPP CIPP-US Exam Practice Material Updated on Nov 04, 2022
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NEW QUESTION 36
SCENARIO
Please use the following to answer the next QUESTION:
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 customer's 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 worry 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 main problem with Cheryl's suggested method of communicating the new privacy policy?
- A. Employees might not understand how the documents relate to the policy as a whole.
- B. Employees would not be comfortable with a policy that is put into action over time.
- C. The policy would not be considered valid if not communicated in full.
- D. The policy might not be implemented consistency across departments.
Answer: D
NEW QUESTION 37
Which statute is considered part of U.S. federal privacy law?
- A. The Fair Credit Reporting Act.
- B. The e-Privacy Directive.
- C. The Personal Information Protection and Electronic Documents Act.
- D. SB 1386.
Answer: A
NEW QUESTION 38
Which of the following accurately describes the purpose of a particular federal enforcement agency?
- A. The Federal Trade Commission (FTC) is typically recognized as having the broadest authority under the FTC Act to address unfair or deceptive privacy practices.
- B. The Cybersecurity and Infrastructure Security Agency (CISA) is authorized to bring civil enforcement actions against organizations whose website or other online service fails to adequately secure personal information.
- C. The National Institute of Standards and Technology (NIST) has established mandatory privacy standards that can then be enforced against all for-profit organizations by the Department of Justice (DOJ).
- D. The Federal Communications Commission (FCC) regulates privacy practices on the internet and enforces violations relating to websites' posted privacy disclosures.
Answer: A
NEW QUESTION 39
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?
- A. Temporary employees will be able to find the data necessary to fulfill their responsibilities.
- B. The organization will still be in compliance with most sector-specific privacy and security laws.
- C. The impact of an organizational data breach will be more severe than if the data had been segregated.
- D. The organization will be able to address legal discovery requests efficiently without producing more information than necessary.
Answer: D
NEW QUESTION 40
SCENARIO
Please use the following to answer the next QUESTION:
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 medi a. 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 regard to telemarketing practices, Evan the supervisor has a misconception regarding?
- A. The conditions under which recipients can opt out
- B. The relationship of state law to federal law
- C. The right to monitor calls for quality assurance
- D. The wishes of recipients who request callbacks
Answer: D
NEW QUESTION 41
What information did the Red Flag Program Clarification Act of 2010 add to the original Red Flags rule?
- A. The process for proper disposal of sensitive data.
- B. The components of an identity theft detection program.
- C. The most common methods of identity theft.
- D. The definition of what constitutes a creditor.
Answer: D
NEW QUESTION 42
John, a California resident, receives notification that a major corporation with $500 million in annual revenue has experienced a data breach. John's personal information in their possession has been stolen, including his full name and social security numb. John also learns that the corporation did not have reasonable cybersecurity measures in place to safeguard his personal information.
Which of the following answers most accurately reflects John's ability to pursue a legal claim against the corporation under the California Consumer Privacy Act (CCPA)?
- A. John has no right to sue the corporation because the CCPA does not address any data breach rights.
- B. John can sue the corporation for the data breach but only to recover monetary damages he actually suffered as a result of the data breach.
- C. John cannot sue the corporation for the data breach because only the state's Attoney General has authority to file suit under the CCPA.
- D. John can sue the corporation for the data breach to recover monetary damages suffered as a result of the data breach, and in some circumstances seek statutory damages irrespective of whether he suffered any financial harm.
Answer: B
NEW QUESTION 43
What is a key way that the Gramm-Leach-Bliley Act (GLBA) prevents unauthorized access into a person's back account?
- A. By requiring the financial institutions limit the collection of personal information.
- B. By requiring the amount of customer personal information printed on paper.
- C. By requiring immediate public disclosure after a suspected security breach.
- D. By restricting the disclosure of customer account numbers by financial institutions.
Answer: D
NEW QUESTION 44
What is the most likely reason that states have adopted their own data breach notification laws?
- A. Many large businesses have intentionally breached the personal information of their customers
- B. Many lawmakers believe that federal enforcement of current laws has not been effective
- C. Many types of organizations are not currently subject to federal laws regarding breaches
- D. Many states have unique types of businesses that require specific legislation
Answer: B
NEW QUESTION 45
Which federal law or regulation preempts state law?
- A. Controlling the Assault of Non-Solicited Pornography and Marketing Act
- B. Telemarketing Sales Rule
- C. Health Insurance Portability and Accountability Act
- D. Electronic Communications Privacy Act of 1986
Answer: C
NEW QUESTION 46
SCENARIO
Please use the following to answer the next QUESTION:
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.
Of the safeguards required by the HIPAA Security Rule, which of the following is NOT at issue due to HealthCo's actions?
- A. Technical Safeguards
- B. Security Safeguards
- C. Physical Safeguards
- D. Administrative Safeguards
Answer: B
NEW QUESTION 47
SCENARIO
Please use the following to answer the next question:
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?
- A. Because HIPAA requires the imposition of a fine if a data breach of this magnitude has occurred
- B. Because HealthCo did not conduct due diligence to verify or monitor CloudHealth's security measures
- C. Because HealthCo did not require CloudHealth to implement appropriate physical and administrative measures to safeguard the ePHI
- D. Because CloudHealth violated its contract with HealthCo by not encrypting the ePHI
Answer: B
NEW QUESTION 48
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 dat a. 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 GDPR, the complainant's request regarding her personal information is known as what?
- A. Right of Rectification
- B. Right of Access
- C. Right to Be Forgotten
- D. Right of Removal
Answer: D
NEW QUESTION 49
California's SB 1386 was the first law of its type in the United States to do what?
- A. Require commercial entities to disclose a security data breach concerning personal information about the state's residents
- B. Require notification of non-California residents of a breach that occurred in California
- C. Require encryption of sensitive information stored on servers that are Internet connected
- D. Require state attorney general enforcement of federal regulations against unfair and deceptive trade practices
Answer: A
NEW QUESTION 50
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 that preferences are applied consistently across channels and platforms
- C. Ensuring they are in compliance with numerous complex state and federal privacy laws
- D. Determining the legal requirements for sharing preferences with their affiliates
Answer: B
NEW QUESTION 51
How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?
- A. It stipulated the purpose of obtaining a consumer report can only be for a review of the employee's credit worthiness
- B. It required employers to get an employee's consent in advance of requesting a consumer report for internal investigation purposes
- C. It expanded the definition of "consumer reports" to include communications relating to employee investigations
- D. It increased the obligation of organizations to dispose of consumer data in ways that prevent unauthorized access
Answer: D
Explanation:
Section: (none)
Explanation
NEW QUESTION 52
The Video Privacy Protection Act of 1988 restricted which of the following?
- A. Which purchase records of audio visual materials may be disclosed
- B. Who advertisements for videos and video games may target
- C. When a user's viewing of online video content can be monitored
- D. When downloading of copyrighted audio visual materials is allowed
Answer: A
NEW QUESTION 53
All of the following organizations are specified as covered entities under the Health Insurance Portability and Accountability Act (HIPAA) EXCEPT?
- A. Health plans
- B. Pharmaceutical companies
- C. Healthcare providers
- D. Healthcare information clearinghouses
Answer: B
NEW QUESTION 54
Which federal agency plays a role in privacy policy, but does NOT have regulatory authority?
- A. The Office of the Comptroller of the Currency.
- B. The Department of Commerce.
- C. The Department of Transportation.
- D. The Federal Communications Commission.
Answer: C
NEW QUESTION 55
What is the main purpose of requiring marketers to use the Wireless Domain Registry?
- A. To acquire authorization to send emails to mobile devices
- B. To prevent unauthorized emails to mobile devices
- C. To ensure their emails are sent to actual wireless subscribers
- D. To access a current list of wireless domain names
Answer: B
NEW QUESTION 56
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
NEW QUESTION 57
SCENARIO
Please use the following to answer the next QUESTION
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 dat a. 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.
Which principle of the Consumer Privacy Bill of Rights, if adopted, would best reform the company's privacy program?
- A. Consumers have a right to reasonable limits on the personal data that a company retains.
- B. Consumers have a right to correct personal data in a manner that is appropriate to the sensitivity.
- C. Consumers have a right to easily accessible information about privacy and security practices.
- D. Consumers have a right to exercise control over how companies use their personal data.
Answer: A
NEW QUESTION 58
In what way is the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act intended to help consumers?
- A. By requiring a company to receive an opt-in before sending any advertising e-mails.
- B. By requiring companies to allow consumers to opt-out of future e-mails.
- C. By prohibiting companies from sending objectionable content through unsolicited e-mails.
- D. By providing consumers with free spam-filtering software.
Answer: C
NEW QUESTION 59
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