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NEW QUESTION 122
A U.S. company's website sells widgets. Which of the following factors would NOT in itself subject the company to the GDPR?
- A. The website places cookies to monitor the EU website user behavior.
- B. The widgets are offered in EU and priced in euro.
- C. The website is in English and French, and is accessible in France.
- D. An affiliate office is located in France but the processing is in the U.S.
Answer: C
NEW QUESTION 123
SCENARIO
Please use the following to answer the next question:
You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company's revenue is due to international sales.
The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's questions on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.
When a child asks the toy a question, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's question. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.
In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character's abilities remain intact.
Why is this company obligated to comply with the GDPR?
- A. The company's products are marketed directly to EU customers.
- B. The company has offices in the EU.
- C. The company's data center is located in a country outside the EU.
- D. The company employs staff in the EU.
Answer: A
NEW QUESTION 124
In which situation would a data controller most likely be able to justify the processing of the data of a child without parental consent?
- A. When providing preventive or counselling services to the child.
- B. When the data is to be processed for market research.
- C. When a legitimate business interest makes obtaining consent impractical.
- D. When providing the child with materials purely for educational use.
Answer: A
NEW QUESTION 125
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 without the use of additional information kept separately.
- C. Data that has been rendered anonymous in such a manner that the data subject is no longer identifiable.
- D. Data that can no longer be attributed to a specific data subject, with no possibility of re-identifying the data.
Answer: B
NEW QUESTION 126
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 is provided by the data processor.
- B. If the data protection officer also manages the marketing budget.
- C. If the data protection officer receives instructions from the data controller.
- D. If the data protection officer lacks ISO 27001 auditor certification.
Answer: C
NEW QUESTION 127
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.
After Louis has exercised his right to restrict the use of his data, under what conditions would Accidentable have grounds for refusing to comply?
- A. If the data becomes necessary to defend Accidentable's legal rights.
- B. If Accidentable is entitled to use of the data as an affiliate of Bedrock.
- C. If Accidentable also uses the data to conduct public health research.
- D. If the accuracy of the data is not an aspect that Louis is disputing.
Answer: B
NEW QUESTION 128
How does the GDPR now define "processing"?
- A. Any operation or set of operations performed by automated means on personal data or on sets of personal data.
- B. Any use or disclosure of personal data compatible with the purpose for which the data was collected.
- C. Any act involving the collecting and recording of personal data.
- D. Any operation or set of operations performed on personal data or on sets of personal data.
Answer: D
NEW QUESTION 129
The GDPR forbids the practice of "forum shopping", which occurs when companies do what?
- A. File appeals of infringement judgments with more than one EU institution simultaneously.
- B. Choose the data protection officer that is most sympathetic to their business concerns.
- C. Select third-party processors on the basis of cost rather than quality of privacy protection.
- D. Designate their main establishment in member state with the most flexible practices.
Answer: D
NEW QUESTION 130
A grade school is planning to use facial recognition to track student attendance. Which of the following may provide a lawful basis for this processing?
- A. Processing is necessary for the legitimate interests pursed by the school.
- B. A state law requires facial recognition to verify attendance.
- C. The school gets explicit consent from the students.
- D. The school places a notice near each camera.
Answer: D
NEW QUESTION 131
What permissions are required for a marketer to send an email marketing message to a consumer in the EU?
- A. A notice that the consumer's email address will be used for marketing purposes.
- B. A prior opt-in consent for consumers unless they are already customers.
- C. A pre-checked box stating that the consumer agrees to receive email marketing.
- D. No prior permission required, but an opt-out requirement on all emails sent to consumers.
Answer: B
NEW QUESTION 132
Under the GDPR, who would be LEAST likely to be allowed to engage in the collection, use, and disclosure of a data subject's sensitive medical information without the data subject's knowledge or consent?
- A. A journalist writing an article relating to the medical condition in question, who believes that the publication of such information is in the public interest.
- B. A health professional involved in the medical care for the data subject, where the data subject's life hinges on the timely dissemination of such information.
- C. A public authority responsible for public health, where the sharing of such information is considered necessary for the protection of the general populace.
- D. A member of the judiciary involved in adjudicating a legal dispute involving the data subject and concerning the health of the data subject.
Answer: C
NEW QUESTION 133
Please use the following to answer the next question:
Due to rapidly expanding workforce, Company A has decided to outsource its payroll function to Company B. Company B is an established payroll service provider with a sizable client base and a solid reputation in the industry.
Company B's payroll solution for Company A relies on the collection of time and attendance data obtained via a biometric entry system installed in each of Company A's factories. Company B won't hold any biometric data itself, but the related data will be uploaded to Company B's UK servers and used to provide the payroll service. Company B's live systems will contain the following information for each of Company A's employees:
Name
Address
Date of Birth
Payroll number
National Insurance number
Sick pay entitlement
Maternity/paternity pay entitlement
Holiday entitlement
Pension and benefits contributions
Trade union contributions
Jenny is the compliance officer at Company A. She first considers whether Company A needs to carry out a data protection impact assessment in relation to the new time and attendance system, but isn't sure whether or not this is required.
Jenny does know, however, that under the GDPR there must be a formal written agreement requiring Company B to use the time and attendance data only for the purpose of providing the payroll service, and to apply appropriate technical and organizational security measures for safeguarding the data. Jenny suggests that Company B obtain advice from its data protection officer. The company doesn't have a DPO but agrees, in the interest of finalizing the contract, to sign up for the provisions in full. Company A enters into the contract.
Weeks later, while still under contract with Company A, Company B embarks upon a separate project meant to enhance the functionality of its payroll service, and engages Company C to help. Company C agrees to extract all personal data from Company B's live systems in order to create a new database for Company B.
This database will be stored in a test environment hosted on Company C's U.S. server. The two companies agree not to include any data processing provisions in their services agreement, as data is only being used for IT testing purposes.
Unfortunately, Company C's U.S. server is only protected by an outdated IT security system, and suffers a cyber security incident soon after Company C begins work on the project. As a result, data relating to Company A's employees is visible to anyone visiting Company C's website. Company A is unaware of this until Jenny receives a letter from the supervisory authority in connection with the investigation that ensues. As soon as Jenny is made aware of the breach, she notifies all affected employees.
The GDPR requires sufficient guarantees of a company's ability to implement adequate technical and organizational measures. What would be the most realistic way that Company B could have fulfilled this requirement?
- A. Avoiding the use of another company's data to improve their own services.
- B. Hiring companies whose measures are consistent with recommendations of accrediting bodies.
- C. Requesting advice and technical support from Company A's IT team.
- D. Vetting companies' measures with the appropriate supervisory authority.
Answer: B
NEW QUESTION 134
What permissions are required for a marketer to send an email marketing message to a consumer in the EU?
- A. A notice that the consumer's email address will be used for marketing purposes.
- B. A prior opt-in consent for consumers unless they are already customers.
- C. A pre-checked box stating that the consumer agrees to receive email marketing.
- D. No prior permission required, but an opt-out requirement on all emails sent to consumers.
Answer: B
Explanation:
Explanation/Reference: https://www.forbes.com/sites/forbescommunicationscouncil/2018/06/27/what-gdpr-means-for- email-marketing-to-eu-customers/#64020aa8374a
NEW QUESTION 135
According to the E-Commerce Directive 2000/31/EC, where is the place of "establishment" for a company providing services via an Internet website confirmed by the GDPR?
- A. Where the decisions about processing are made
- B. Where the website is accessed
- C. Where the technology supporting the website is located
- D. Where the customer's Internet service provider is located
Answer: D
Explanation:
Reference https://www.ohiobar.org/member-tools-benefits/publications/Ohio-Lawyer/the-european-general- data-protection-regulation-gdpr/
NEW QUESTION 136
The European Parliament jointly exercises legislative and budgetary functions with which of the following?
- A. The European Data Protection Board.
- B. The Council of the European Union.
- C. The European Commission.
- D. The Article 29 Working Party.
Answer: B
NEW QUESTION 137
What is true of both the General Data Protection Regulation (GDPR) and the Council of Europe Convention 108?
- A. Both only apply to European Union countries
- B. Both require notification of processing activities to a supervisory authority
- C. Both govern the manual processing of personal data
- D. Both govern international transfers of personal data
Answer: B
NEW QUESTION 138
If a multi-national company wanted to conduct background checks on all current and potential employees, including those based in Europe, what key provision would the company have to follow?
- A. Background checks may not be allowed on European employees, but the company can create lists based on its legitimate interests, identifying individuals who are ineligible for employment.
- B. Background checks on employees could be performed only under prior notice to all employees.
- C. Background checks on European employees will stem from data protection and employment law, which can vary between member states.
- D. Background checks are only authorized with prior notice and express consent from all employees including those based in Europe.
Answer: C
Explanation:
Reference https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/ conductingbackgroundinvestigations.aspx
NEW QUESTION 139
SCENARIO
Please use the following to answer the next question:
Joe started the Gummy Bear Company in 2000 from his home in Vermont, USA.
Today, it is a multi-billion-dollar candy company operating in every continent. All of the company's IT servers are located in Vermont. This year Joe hires his son Ben to join the company and head up Project Big, which is a major marketing strategy to triple gross revenue in just 5 years. Ben graduated with a PhD in computer software from a top university. Ben decided to join his father's company, but is also secretly working on launching a new global online dating website company called Ben Knows Best.
Ben is aware that the Gummy Bear Company has millions of customers and believes that many of them might also be interested in finding their perfect match. For Project Big, Ben redesigns the company's online web portal and requires customers in the European Union and elsewhere to provide additional personal information in order to remain a customer. Project Ben begins collecting data about customers' philosophical beliefs, political opinions and marital status.
If a customer identifies as single, Ben then copies all of that customer's personal data onto a separate database for Ben Knows Best. Ben believes that he is not doing anything wrong, because he explicitly asks each customer to give their consent by requiring them to check a box before accepting their information. As Project Big is an important project, the company also hires a first year college student named Sam, who is studying computer science to help Ben out.
Ben calls out and Sam comes across the Ben Knows Best database. Sam is planning on going to Ireland over Spring Beak with 10 of his friends, so he copies all of the customer information of people that reside in Ireland so that he and his friends can contact people when they are in Ireland.
Joe also hires his best friend's daughter, Alice, who just graduated from law school in the U.S., to be the company's new General Counsel. Alice has heard about the GDPR, so she does some research on it. Alice approaches Joe and informs him that she has drafted up Binding Corporate Rules for everyone in the company to follow, as it is important for the company to have in place a legal mechanism to transfer data internally from the company's operations in the European Union to the U.S.
Joe believes that Alice is doing a great job, and informs her that she will also be in-charge of handling a major lawsuit that has been brought against the company in federal court in the U.S. To prepare for the lawsuit, Alice instructs the company's IT department to make copies of the computer hard drives from the entire global sales team, including the European Union, and send everything to her so that she can review everyone's information. Alice believes that Joe will be happy that she did the first level review, as it will save the company a lot of money that would otherwise be paid to its outside law firm.
As a result of Sam's actions, the Gummy Bear Company potentially violated Articles 33 and 34 of the GDPR and will be required to do what?
- A. Notify its Data Protection Authority about the data breach.
- B. Notify all of its customers that reside in the European Union.
- C. Analyze and evaluate the liability for customers in Ireland.
- D. Analyze and evaluate all of its breach notification obligations.
Answer: A
NEW QUESTION 140
Please use the following to answer the next question:
ProStorage is a multinational cloud storage provider headquartered in the Netherlands. Its CEO. Ruth Brown, has developed a two-pronged strategy for growth: 1) expand ProStorage s global customer base and 2) increase ProStorage's sales force by efficiently onboarding effective teams. Enacting this strategy has recently been complicated by Ruth's health condition, which has limited her working hours, as well as her ability to travel to meet potential customers. ProStorage's Human Resources department and Ruth's Chief of Staff now work together to manage her schedule and ensure that she is able to make all her medical appointments The latter has become especially crucial after Ruth's last trip to India, where she suffered a medical emergency and was hospitalized m New Delhi Unable to reach Ruths family, the hospital reached out to ProStorage and was able to connect with her Chief of Staff, who in coordination with Mary, the head of HR. provided information to the doctors based on accommodate on requests Ruth made when she started a: ProStorage What transfer mechanism should Jackie recommend for using InstaHR?
- A. Explicit consent of employees.
- B. Binding corporate rules.
- C. Standard contractual clauses
- D. Adequacy
Answer: A
NEW QUESTION 141
What is true of both the General Data Protection Regulation (GDPR) and the Council of Europe Convention
108?
- A. Both only apply to European Union countries
- B. Both require notification of processing activities to a supervisory authority
- C. Both govern the manual processing of personal data
- D. Both govern international transfers of personal data
Answer: B
NEW QUESTION 142
If two controllers act as joint controllers pursuant to Article 26 of the GDPR, which of the following may NOT be validly determined by said controllers?
- A. The non-disclosure of the essence of their arrangement to data subjects
- B. The rules to provide information to data subjects in Articles 13 and 14.
- C. The rules regarding the exercising of data subjects" rights.
- D. The definition of a central contact point for data subjects.
Answer: B
NEW QUESTION 143
Which GDPR principle would a Spanish employer most likely depend upon to annually send the personal data of its employees to the national tax authority?
- A. The legal obligation of the employer.
- B. The consent of the employees.
- C. The legitimate interest of the public administration.
- D. The protection of the vital interest of the employees.
Answer: A
NEW QUESTION 144
Please use the following to answer the next question:
ProStorage is a multinational cloud storage provider headquartered in the Netherlands. Its CEO. Ruth Brown, has developed a two-pronged strategy for growth: 1) expand ProStorage s global customer base and 2) increase ProStorage's sales force by efficiently onboarding effective teams. Enacting this strategy has recently been complicated by Ruth's health condition, which has limited her working hours, as well as her ability to travel to meet potential customers. ProStorage's Human Resources department and Ruth's Chief of Staff now work together to manage her schedule and ensure that she is able to make all her medical appointments The latter has become especially crucial after Ruth's last trip to India, where she suffered a medical emergency and was hospitalized m New Delhi Unable to reach Ruths family, the hospital reached out to ProStorage and was able to connect with her Chief of Staff, who in coordination with Mary, the head of HR. provided information to the doctors based on accommodate on requests Ruth made when she started a: ProStorage Why is the additional measure recommended by Jackie sufficient foe using UpFinance?
- A. UpFinance implements sufficient data protection measures
- B. UpFinance is in a highly regulated financial industry
- C. UpFinance is an established 7-year-old business.
- D. UpFinance is based in a country without surveillance laws.
Answer: D
NEW QUESTION 145
Company X has entrusted the processing of their payroll data to Provider Y.
Provider Y stores this encrypted data on its server. The IT department of Provider Y finds out that someone managed to hack into the system and take a copy of the data from its server. In this scenario, whom does Provider Y have the obligation to notify?
- A. The public
- B. The supervisory authority
- C. Company X
- D. Law enforcement
Answer: D
NEW QUESTION 146
Which of the following would require designating a data protection officer?
- A. Processing is carried out for the purpose of providing for-profit goods or services to individuals in the EU.
- B. Processing is carried out by an organization employing 250 persons or more.
- C. The core activities of the controller or processor consist of processing operations that require systematic monitoring of data subjects on a large scale.
- D. The core activities of the controller or processor consist of processing operations of financial information or information relating to children.
Answer: C
Explanation:
Reference https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection- regulation-gdpr/accountability-and-governance/data-protection-officers/
NEW QUESTION 147
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