Free Access to IAPP.CIPP-E.v2024-03-24.q264 with Valid Practice Test (Page 33)

Question 157

Under what circumstances would the GDPR apply to personal data that exists in physical form, such as information contained in notebooks or hard copy files?

A.Only where the personal data is handled in a sufficiently structured manner so as to form part of a filing system.
B.Only where the personal data is treated by automated means in some way, such as computerized distribution or filing.
C.Only where the personal data is to be subjected to specific computerized processing, such as image scanning or optical character recognition.
D.Only where the personal data is produced as a physical output of specific automated processing activities, such as printing, labelling, or stamping.

Question 158

Which kind of privacy notice, originally advocated by the Article 29 Working Party, is commonly recommended tor Al-based technologies because of the way it provides processing information at specific points of data collection?

A.Privacy dashboard notice
B.Visualization notice.
C.Just-in-lime notice.
D.Layered notice.

Question 159

Which change was introduced by the 2009 amendments to the e-Privacy Directive 2002/58/EC?

A.A mandatory notification for personal data breaches applicable to electronic communication providers.
B.A voluntary notification for personal data breaches applicable to all data controllers.
C.A voluntary notification for personal data breaches applicable to electronic communication providers.
D.A mandatory notification for personal data breaches applicable to all data controllers.

Question 160

Which of the following would require designating a data protection officer?

A.Processing is carried out by an organization employing 250 persons or more.
B.Processing is carried out for the purpose of providing for-profit goods or services to individuals in the EU.
C.The core activities of the controller or processor consist of processing operations of financial information or information relating to children.
D.The core activities of the controller or processor consist of processing operations that require systematic monitoring of data subjects on a large scale.

Correct Answer: D

According to Article 37 of the GDPR, the designation of a data protection officer (DPO) is mandatory for controllers and processors in three cases1:
When the processing is carried out by a public authority or body, except for courts acting in their judicial capacity; When the core activities of the controller or the processor consist of processing operations which, by virtue of their nature, their scope and/or their purposes, require regular and systematic monitoring of data subjects on a large scale; or When the core activities of the controller or the processor consist of processing on a large scale of special categories of data pursuant to Article 9 and personal data relating to criminal convictions and offences referred to in Article 10.
The GDPR does not define what constitutes "regular and systematic monitoring" or "large scale", but the Article 29 Working Party (now replaced by the European Data Protection Board) has provided some guidance on these concepts2. According to the guidance, "regular and systematic monitoring" includes all forms of tracking and profiling on the internet, including for the purposes of behavioural advertising, but also offline activities such as CCTV or health data monitoring. The guidance also suggests some criteria to assess whether the processing is carried out on a large scale, such as the number of data subjects concerned, the volume of data or the range of data items processed, the duration or permanence of the processing activity, and the geographical extent of the processing.
In the given scenario, option D is the only one that clearly falls under the second case of mandatory DPO designation, as it implies that the controller or processor is engaged in regular and systematic monitoring of data subjects on a large scale as part of their core activities. This could include, for example, online behavioural advertising, location tracking, loyalty programs, or health data analytics. The other options are not sufficient to trigger the obligation to appoint a DPO, unless they are combined with other factors that indicate a large scale or a high risk of the processing. For instance, option A is not relevant, as the GDPR does not set a threshold based on the size or number of employees of the organisation. Option B is also not decisive, as the GDPR does not distinguish between for-profit or non-profit purposes of the processing. Option C may require a DPO if the processing of financial information or information relating to children is done on a large scale and involves special categories of data, but it is not a general rule. Reference:
1: Article 37 of the GDPR
2: Guidelines on Data Protection Officers ('DPOs')
3: Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation)
4: https://edpb.europa.eu/sites/edpb/files/files/file1/wp243rev01_en.pdf
5: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32016R0679
6: [https://edpb.europa.eu/sites/edpb/files/files/file1/wp243rev01_en.pdf]
7: [https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32016R0679]

Question 161

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

Question 157

Question 158

Question 159

Question 160

Question 161

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