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  1. Home
  2. IAPP Certification
  3. CIPP-E Exam
  4. IAPP.CIPP-E.v2024-03-24.q264 Dumps
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Question 127

Which type of personal data does the GDPR define as a "special category" of personal data?

Correct Answer: B
Reference https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection- regulation-gdpr/lawful-basis-for-processing/special-category-data/#:~:text=The%20GDPR%20defines% 20special%20category%20data%20as%3A&text=personal%20data%20revealing%20trade%20union,used% 20for%20identification%20purposes)%3B
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Question 128

To provide evidence of GDPR compliance, a company performs an internal audit. As a result, it finds a data base, password-protected, listing all the social network followers of the client.
Regarding the domain of the controller-processor relationships, how is this situation considered?

Correct Answer: B
The GDPR requires that the processor only processes personal data on behalf of the controller and according to the controller's instructions12. The agreement between the controller and the processor must include provisions that ensure that the processor does not process personal data for any other purposes or in a manner that is inconsistent with the controller's instructions34. Therefore, if the processor stores personal data that is not necessary for the performance of the contract with the controller, such as the social network followers of the client, this is a breach of the GDPR and the processor may be fined2. The fact that the data base is password-protected does not affect the applicability of the GDPR or the security principle, as the data is still personal data that can identify data subjects. The storage limitation principle also requires that personal data be kept for no longer than is necessary for the purposes for which the personal data are processed, so deleting the data base after the audit does not make the situation compliant. Reference: 1: Article 28 of the GDPR 2: Guidelines 07/2020 on the concepts of controller and processor in the GDPR 3: Understanding Controller-to-Processor Agreements - GDPR Advisor 4: New Guidelines on Data Controllers and Processors: Time to Review Data Processing Agreements : Article 4 of the GDPR : Article 5 of the GDPR
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Question 129

When does the European Data Protection Board (EDPB) recommend reevaluating whether a transfer tool is effectively providing a level of personal data protection that is in compliance with the European Union (EU) level?

Correct Answer: C
Reference https://edpb.europa.eu/sites/default/files/consultation/edpb_recommendations_202001_supplementarymeasurestransferstools_en.pdf
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Question 130

SCENARIO
Please use the following to answer the next question:
Joe is the new privacy manager for Who-R-U, a Canadian business that provides DNA analysis. The company is headquartered in Montreal, and all of its employees are located there. The company offers its services to Canadians only: Its website is in English and French, it accepts only Canadian currency, and it blocks internet traffic from outside of Canada (although this solution doesn't prevent all non-Canadian traffic). It also declines to process orders that request the DNA report to be sent outside of Canada, and returns orders that show a non-Canadian return address.
Bob, the President of Who-R-U, thinks there is a lot of interest for the product in the EU, and the company is exploring a number of plans to expand its customer base.
The first plan, collegially called We-Track-U, will use an app to collect information about its current Canadian customer base. The expansion will allow its Canadian customers to use the app while traveling abroad. He suggests that the company use this app to gather location information. If the plan shows promise, Bob proposes to use push notifications and text messages to encourage existing customers to pre-register for an EU version of the service. Bob calls this work plan, We-Text-U. Once the company has gathered enough pre- registrations, it will develop EU-specific content and services.
Another plan is called Customer for Life. The idea is to offer additional services through the company's app, like storage and sharing of DNA information with other applications and medical providers. The company's contract says that it can keep customer DNA indefinitely, and use it to offer new services and market them to customers. It also says that customers agree not to withdraw direct marketing consent. Paul, the marketing director, suggests that the company should fully exploit these provisions, and that it can work around customers' attempts to withdraw consent because the contract invalidates them.
The final plan is to develop a brand presence in the EU. The company has already begun this process. It is in the process of purchasing the naming rights for a building in Germany, which would come with a few offices that Who-R-U executives can use while traveling internationally. The office doesn't include any technology or infrastructure; rather, it's simply a room with a desk and some chairs.
On a recent trip concerning the naming-rights deal, Bob's laptop is stolen. The laptop held unencrypted DNA reports on 5,000 Who-R-U customers, all of whom are residents of Canad a. The reports include customer name, birthdate, ethnicity, racial background, names of relatives, gender, and occasionally health information.
Who-R-U is NOT required to notify the local German DPA about the laptop theft because?

Correct Answer: A
According to the GDPR, a data breach must be notified to the supervisory authority of the member state where the controller or processor is established, unless the breach is unlikely to result in a risk to the rights and freedoms of natural persons1. The GDPR defines a controller as "the natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of personal data"2. The GDPR also specifies that a controller or processor is considered to be established in the Union if it has "an effective and real exercise of activity through stable arrangements" in the Union, regardless of its legal form or location of its headquarters3.
In this scenario, Who-R-U is not a controller established in the Union, because it does not have any stable arrangements in the Union that involve the processing of personal data. The company only offers its services to Canadians, and does not target or monitor individuals in the Union. The fact that it has purchased the naming rights for a building in Germany, which comes with a few offices, does not constitute an effective and real exercise of activity in the Union, as the offices do not include any technology or infrastructure for processing personal data, and are only used by executives while traveling internationally. Therefore, Who-R-U is not subject to the GDPR's data breach notification obligation, and is not required to notify the local German DPA about the laptop theft.
Reference:
Art. 33 GDPR - Notification of a personal data breach to the supervisory authority Art. 4 GDPR - Definitions Art. 3 GDPR - Territorial scope Guidelines 9/2022 on personal data breach notification under GDPR Guidelines 3/2018 on the territorial scope of the GDPR I hope this helps you understand the GDPR and data breach notification better. If you have any other questions, please feel free to ask me.
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Question 131

A homeowner has installed a motion-detecting surveillance system that films his front doc and entryway. The camera does not film any public areas only areas that are the property of the homeowner. The system has seen declared to the authorities per the homeowner's country law, and a placard indicating the area is being video monitored is visible when entering the property Why can the homeowner NOT depend on the household exemption with regards to the processing of the video images recorded by the surveillance camera system?

Correct Answer: D
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