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  1. Home
  2. IAPP Certification
  3. CIPP-E Exam
  4. IAPP.CIPP-E.v2024-08-06.q168 Dumps
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Question 142

According to the European Data Protection Board, data subjects should be aware of any video surveillance in operation. How should a retail shop operator ensure that data subjects receive at information required for such a purpose under EU data protection law?

Correct Answer: B
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Question 143

A company has collected personal data tor direct marketing purpose on the basis of consent. It is now considering using this data to develop new products through analytics. What is the company first required to do?

Correct Answer: A
According to the GDPR, consent is one of the lawful bases for processing personal data1. Consent means any freely given, specific, informed and unambiguous indication of the data subject's wishes by which he or she, by a statement or by a clear affirmative action, signifies agreement to the processing of personal data relating to him or her2. Therefore, consent must be specific to each purpose of processing and cannot be bundled with other purposes3. If a company wants to use personal data for a new purpose that is not compatible with the original purpose for which consent was given, it must obtain a new consent from the data subjects for the new processing4. Simply informing the data subjects of the new purpose or updating the privacy notice is not sufficient, as it does not imply the data subject's agreement to the new processing. Proceeding with the new processing without obtaining a new consent would be unlawful and could result in fines and sanctions5. Reference:
Free CIPP/E Study Guide, page 23, section 4.1.1
GDPR, Article 4 (11)
GDPR, Recital 32
GDPR, Article 6 (4)
GDPR, Article 83 (5) (a)
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Question 144

A dynamic Internet Protocol (IP) address is considered persona! data when it is combined with what?

Correct Answer: A
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Question 145

SCENARIO
Please use the following to answer the next question:
Liem, an online retailer known for its environmentally friendly shoes, has recently expanded its presence in Europe. Anxious to achieve market dominance, Liem teamed up with another eco friendly company, EcoMick, which sells accessories like belts and bags. Together the companies drew up a series of marketing campaigns designed to highlight the environmental and economic benefits of their products. After months of planning, Liem and EcoMick entered into a data sharing agreement to use the same marketing database, MarketIQ, to send the campaigns to their respective contacts.
Liem and EcoMick also entered into a data processing agreement with MarketIQ, the terms of which included processing personal data only upon Liem and EcoMick's instructions, and making available to them all information necessary to demonstrate compliance with GDPR obligations.
Liem and EcoMick then procured the services of a company called JaphSoft, a marketing optimization firm that uses machine learning to help companies run successful campaigns. Clients provide JaphSoft with the personal data of individuals they would like to be targeted in each campaign. To ensure protection of its clients' data, JaphSoft implements the technical and organizational measures it deems appropriate. JaphSoft works to continually improve its machine learning models by analyzing the data it receives from its clients to determine the most successful components of a successful campaign. JaphSoft then uses such models in providing services to its client-base. Since the models improve only over a period of time as more information is collected, JaphSoft does not have a deletion process for the data it receives from clients. However, to ensure compliance with data privacy rules, JaphSoft pseudonymizes the personal data by removing identifying information from the contact information. JaphSoft's engineers, however, maintain all contact information in the same database as the identifying information.
Under its agreement with Liem and EcoMick, JaphSoft received access to MarketIQ, which included contact information as well as prior purchase history for such contacts, to create campaigns that would result in the most views of the two companies' websites. A prior Liem customer, Ms. Iman, received a marketing campaign from JaphSoft regarding Liem's as well as EcoMick's latest products. While Ms. Iman recalls checking a box to receive information in the future regarding Liem's products, she has never shopped EcoMick, nor provided her personal data to that company.
JaphSoft's use of pseudonymization is NOT in compliance with the CDPR because?

Correct Answer: B
According to the GDPR, pseudonymization is a technique that reduces the linkability of personal data to a specific data subject by replacing identifying attributes with pseudonyms1. Pseudonymization is not a sufficient measure to anonymize personal data, which means that the data cannot be attributed to an identifiable person without additional information2. Pseudonymization can help data controllers and processors to comply with the GDPR principles of data minimization, purpose limitation, and storage limitation, as well as to enhance the security and confidentiality of personal data3.
In this scenario, JaphSoft's use of pseudonymization is not in compliance with the GDPR because of option C: JaphSoft was in possession of information that could be used to identify data subjects. This is because JaphSoft did not keep the additional information (the contact information) separately from the pseudonymized data (the identifying information), and did not apply technical and organizational measures to prevent the re-identification of the data subjects4. This means that JaphSoft could potentially link the personal data to the individuals, and therefore, the data was not effectively pseudonymized. Moreover, JaphSoft did not have a deletion process for the data it received from clients, which could violate the principle of storage limitation that requires personal data to be kept no longer than necessary for the purposes for which they are processed.
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Question 146

What is the consequence if a processor makes an independent decision regarding the purposes and means of processing it carries out on behalf of a controller?

Correct Answer: B
Reference https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection- regulation-gdpr/key-definitions/controllers-and-processors/
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