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Question 67

SCENARIO
Please use the following to answer the next question:
Ben is a member of the fitness club STAYFIT. This company has branches in many EU member states, but for the purposes of the GDPR maintains its primary establishment in France. Ben lives in Newry, Northern Ireland (part of the U.K.), and commutes across the border to work in Dundalk, Ireland. Two years ago while on a business trip, Ben was photographed while working out at a branch of STAYFIT in Frankfurt, Germany. At the time, Ben gave his consent to being included in the photograph, since he was told that it would be used for promotional purposes only. Since then, the photograph has been used in the club's U.K. brochures, and it features in the landing page of its U.K. website. However, the fitness club has recently fallen into disrepute due to widespread mistreatment of members at various branches of the club in several EU member states. As a result, Ben no longer feels comfortable with his photograph being publicly associated with the fitness club.
After numerous failed attempts to book an appointment with the manager of the local branch to discuss this matter, Ben sends a letter to STAYFIT requesting that his image be removed from the website and all promotional materials. Months pass and Ben, having received no acknowledgment of his request, becomes very anxious about this matter. After repeatedly failing to contact STAYFIT through alternate channels, he decides to take action against the company.
Ben contacts the U.K. Information Commissioner's Office ('ICO' - the U.K.'s supervisory authority) to lodge a complaint about this matter.
Under the cooperation mechanism, what should the lead authority (the CNIL) do after it has formed its view on the matter?

A.Submit a draft decision to other supervisory authorities for their opinion.
B.Request that the other supervisory authorities provide the lead authority with a draft decision for its consideration.
C.Submit a draft decision directly to the Commission to ensure the effectiveness of the consistency mechanism.
D.Request that members of the seconding supervisory authority and the host supervisory authority co-draft a decision.

Question 68

SCENARIO
Please use the following to answer the next question:
TripBliss Inc. is a travel service company which has lost substantial revenue over the last few years. Their new manager, Oliver, suspects that this is partly due to the company's outdated website. After doing some research, he meets with a sales representative from the up-and-coming IT company Techiva, hoping that they can design a new, cutting-edge website for TripBliss Inc.'s foundering business.
During negotiations, a Techiva representative describes a plan for gathering more customer information through detailed Questionaires, which could be used to tailor their preferences to specific travel destinations. TripBliss Inc. can choose any number of data categories - age, income, ethnicity - that would help them best accomplish their goals. Oliver loves this idea, but would also like to have some way of gauging how successful this approach is, especially since the Questionaires will require customers to provide explicit consent to having their data collected. The Techiva representative suggests that they also run a program to analyze the new website's traffic, in order to get a better understanding of how customers are using it. He explains his plan to place a number of cookies on customer devices. The cookies will allow the company to collect IP addresses and other information, such as the sites from which the customers came, how much time they spend on the TripBliss Inc. website, and which pages on the site they visit. All of this information will be compiled in log files, which Techiva will analyze by means of a special program. TripBliss Inc. would receive aggregate statistics to help them evaluate the website's effectiveness. Oliver enthusiastically engages Techiva for these services.
Techiva assigns the analytics portion of the project to longtime account manager Leon Santos. As is standard practice, Leon is given administrator rights to TripBliss Inc.'s website, and can authorize access to the log files gathered from it. Unfortunately for TripBliss Inc., however, Leon is taking on this new project at a time when his dissatisfaction with Techiva is at a high point. In order to take revenge for what he feels has been unfair treatment at the hands of the company, Leon asks his friend Fred, a hobby hacker, for help. Together they come up with the following plan: Fred will hack into Techiva's system and copy their log files onto a USB stick. Despite his initial intention to send the USB to the press and to the data protection authority in order to denounce Techiva, Leon experiences a crisis of conscience and ends up reconsidering his plan. He decides instead to securely wipe all the data from the USB stick and inform his manager that the company's system of access control must be reconsidered.
If TripBliss Inc. decides not to report the incident to the supervisory authority, what would be their BEST defense?

A.The resulting obligation to notify data subjects would involve disproportionate effort.
B.The incident resulted from the actions of a third-party that were beyond their control.
C.The destruction of the stolen data makes any risk to the affected data subjects unlikely.
D.The sensitivity of the categories of data involved in the incident was not substantial enough.

Correct Answer: C

According to the GDPR, data controllers must report personal data breaches to the supervisory authority without undue delay and, where feasible, not later than 72 hours after having become aware of it (Art 33 of GDPR). However, the notification is not required if the personal data breach is unlikely to result in a risk to the rights and freedoms of natural persons (Art 33(1) of GDPR). In this case, TripBliss Inc. could argue that the stolen data was securely erased by Leon before it could be disclosed to anyone else, and therefore the risk of harm to the data subjects was minimal. TripBliss Inc. would have to provide evidence of the secure deletion of the data and the absence of any copies or backups. Alternatively, TripBliss Inc. could also invoke the exception of disproportionate effort to avoid notifying the data subjects directly, but only if they have made a public communication or similar measure to inform them in an equally effective manner (Art 34(3)(b) of GDPR). The other options are not valid defenses, as they do not affect the likelihood of risk to the data subjects. The incident was not caused by a third-party, but by an employee of Techiva, who was acting as a data processor on behalf of TripBliss Inc. As the data controller, TripBliss Inc. is responsible for ensuring that the data processor provides sufficient guarantees to implement appropriate technical and organisational measures to comply with the GDPR (Art 28 of GDPR). The sensitivity of the data categories is not relevant for the notification obligation, as any personal data breach could pose a risk to the data subjects, depending on the circumstances. The GDPR does not provide a threshold for the sensitivity of the data, but rather requires a case-by-case assessment of the potential impact of the breach. Reference:
GDPR, Art 33, Art 34, Art 28
Free CIPP/E Study Guide, p. 15
European Data Protection Law & Practice, p. 123-124
Personal data breach notification under the GDPR

Question 69

What was the main failing of Convention 108 that led to the creation of the Data Protection Directive (Directive 95/46/EC)?

A.It did not include protections for sensitive personal data
B.IT did not account for the rapid growth of the Internet
C.It was implemented in a fragmented manner by a small number of states.
D.Its penalties for violations of data protection rights were widely viewed as r sufficient.

Question 70

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.
In light of the requirements of Article 32 of the GDPR (related to the Security of Processing), which practice should the company institute?

A.Encrypt the data in transit over the wireless Bluetooth connection.
B.Include dual-factor authentication before each use by a child in order to ensure a minimum amount of security.
C.Include three-factor authentication before each use by a child in order to ensure the best level of security possible.
D.Insert contractual clauses into the contract between the toy manufacturer and the cloud service provider, since South Africa is outside the European Union.

Question 71

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 on European employees will stem from data protection and employment law, which can vary between member states.
B.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.
C.Background checks are only authorized with prior notice and express consent from all employees including those based in Europe.
D.Background checks on employees could be performed only under prior notice to all employees.

Question 67

Question 68

Question 69

Question 70

Question 71

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