2024 Easy Success IAPP CIPP-US Exam in First Try
Best CIPP-US Exam Dumps for the Preparation of Latest Exam Questions
NEW QUESTION # 32
In what way is the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act intended to help consumers?
- A. By requiring companies to allow consumers to opt-out of future e-mails.
- B. By prohibiting companies from sending objectionable content through unsolicited e-mails.
- C. By requiring a company to receive an opt-in before sending any advertising e-mails.
- D. By providing consumers with free spam-filtering software.
Answer: A
Explanation:
The Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act is a law passed in 2003 that establishes the first national standards for the sending of commercial e-mail in the United States.
The law requires the Federal Trade Commission (FTC) to enforce its provisions. The law applies to any commercial e-mail message, which is defined as any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service. The law does not apply to transactional or relationship messages, which are messages that facilitate an agreed-upon transaction or update a customer about an existing business relationship. The law also does not apply to non-commercial messages, such as political or charitable solicitations12 The CAN-SPAM Act is intended to help consumers by giving them more control over the commercial e-mails they receive. The law does not require companies to obtain prior consent (opt-in) from consumers before sending them commercial e-mails, but it does require companies to honor consumers' requests to stop receiving such e-mails (opt-out). The law specifies that each commercial e-mail message must include a clear and conspicuous notice of the opportunity to decline to receive further messages from the sender, and a valid physical postal address of the sender. The sender must provide a functioning return e-mail address or other Internet-based mechanism that allows the recipient to submit an opt-out request. The sender must honor the opt-out request within 10 business days and must not sell, exchange, or transferthe e-mail address of the opt-out requester to another entity, unless the other entity is acting as an agent of the sender12 By requiring companies to allow consumers to opt-out of future e-mails, the CAN-SPAM Act aims to reduce the amount of unwanted and unsolicited commercial e-mail that consumers receive, and to protect their privacy and preferences. The law also imposes other requirements on companies that send commercial e-mails, such as banning false or misleading header information and deceptive subject lines, requiring the identification of the message as an advertisement, and requiring the labeling of sexually explicit content. The law also authorizes the FTC and other federal agencies to enforce the law and impose civil penalties for violations12 References:
* Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM Act)
* IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 4: Federal Privacy Laws, Section 4.4: The CAN-SPAM Act
NEW QUESTION # 33
Which of the following accurately describes the purpose of a particular federal enforcement agency?
- A. The Cybersecurity and Infrastructure Security Agency (CISA) is authorized to bring civil enforcement actions against organizations whose website or other online service fails to adequately secure personal information.
- B. The National Institute of Standards and Technology (NIST) has established mandatory privacy standards that can then be enforced against all for-profit organizations by the Department of Justice (DOJ).
- C. The Federal Trade Commission (FTC) is typically recognized as having the broadest authority under the FTC Act to address unfair or deceptive privacy practices.
- D. The Federal Communications Commission (FCC) regulates privacy practices on the internet and enforces violations relating to websites' posted privacy disclosures.
Answer: C
Explanation:
The FTC is the primary federal agency responsible for enforcing privacy and data security laws in the United States. The FTC has broad jurisdiction over most commercial entities that collect, use, or share personal information from consumers. The FTC Act prohibits unfair or deceptive acts or practices in or affecting commerce, which includes unfair or deceptive privacy practices. The FTC can bring enforcement actions against companies that violate their own privacy policies, fail to provide adequate notice or choice to consumers, engage in unfair or harmful data practices, or breach consumers' reasonable expectations of privacy. The FTC can also issue rules, guidelines, and reports on privacy and data security issues, as well as conduct investigations, workshops, and educational campaigns. References:
* IAPP CIPP/US Body of Knowledge, Section I.A.1.a
* IAPP CIPP/US Textbook, Chapter 1, pp. 9-12
* FTC Privacy and Security Enforcement
NEW QUESTION # 34
SCENARIO
Please use the following to answer the next QUESTION :
Declan has just started a job as a nursing assistant in a radiology department at Woodland Hospital. He has also started a program to become a registered nurse.
Before taking this career path, Declan was vaguely familiar with the Health Insurance Portability and Accountability Act (HIPAA). He now knows that he must help ensure the security of his patients' Protected Health Information (PHI). Therefore, he is thinking carefully about privacy issues.
On the morning of his first day, Declan noticed that the newly hired receptionist handed each patient a HIPAA privacy notice. He wondered if it was necessary to give these privacy notices to returning patients, and if the radiology department could reduce paper waste through a system of one-time distribution.
He was also curious about the hospital's use of a billing company. He Questioned whether the hospital was doing all it could to protect the privacy of its patients if the billing company had details about patients' care.
On his first day Declan became familiar with all areas of the hospital's large radiology department. As he was organizing equipment left in the halfway, he overheard a conversation between two hospital administrators. He was surprised to hear that a portable hard drive containing non-encrypted patient information was missing. The administrators expressed relief that the hospital would be able to avoid liability. Declan was surprised, and wondered whether the hospital had plans to properly report what had happened.
Despite Declan's concern about this issue, he was amazed by the hospital's effort to integrate Electronic Health Records (EHRs) into the everyday care of patients. He thought about the potential for streamlining care even more if they were accessible to all medical facilities nationwide.
Declan had many positive interactions with patients. At the end of his first day, he spoke to one patient, John, whose father had just been diagnosed with a degenerative muscular disease. John was about to get blood work done, and he feared that the blood work could reveal a genetic predisposition to the disease that could affect his ability to obtain insurance coverage. Declan told John that he did not think that was possible, but the patient was wheeled away before he could explain why. John plans to ask a colleague about this.
In one month, Declan has a paper due for one his classes on a health topic of his choice. By then, he will have had many interactions with patients he can use as examples. He will be pleased to give credit to John by name for inspiring him to think more carefully about genetic testing.
Although Declan's day ended with many QUESTIONS, he was pleased about his new position.
How can the radiology department address Declan's concern about paper waste and still comply with the Health Insurance Portability and Accountability Act (HIPAA)?
- A. State the privacy policy to the patient verbally
- B. Confirm that patients are given the privacy notice on their first visit
- C. Post the privacy notice in a prominent location instead
- D. Direct patients to the correct area of the hospital website
Answer: D
Explanation:
It is important for test takers to not add additional information to the prompt by assuming information. By choosing D, you are assuming that Declan will stay long enough in the position that he will personally see to it that every first time patient receives a privacy notice. By choosing C, you are answering the exact question by addressing the paper waste concern and complying with HIPAA which allows covered entities to post privacy notices on websites. Model Notices of Privacy Practices on the HHS website outlines two requirements: A covered entity must make its notice available to any person who asks for it (satisfies pointing the person in the direction of the covered entity website); A covered entity must prominently post and make available its notice on any web site it maintains that provides information about its customer services or benefits (satisfies pointing the person to the covered entity website to view privacy notice).
NEW QUESTION # 35
Chanel Hair Studio is a busy high-end hair salon. In an effort to maximize efficiency of its operations and reduce wait times for appointments, Chanel decides to implement artificial intelligence software that will use client profiles and history to predict which clients will likely be late for their appointments. Information used to create the client profile included appointment history, distance from the salon, and any references to being tardy pulled from the client's social media accounts. If a client is predicted to be late, their appointment will be cancelled within 5 minutes.
Based on the details, what is the biggest potential privacy concern related to Chanel's use of this new software?
- A. Assessing client tardiness history with the salon for predictive purposes.
- B. Using client profile information for any purpose other than setting up an appointment.
- C. Scanning a client's social media accounts to use in a client profile without notice to the client.
- D. Calculating client profile address distance from the salon to determine location from salon to help predict if the client will be late.
Answer: D
NEW QUESTION # 36
SCENARIO
Please use the following to answer the next QUESTION:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
What is the best reason for Cheryl to follow Janice's suggestion about classifying customer data?
- A. It will increase the security of customers' personal information (PI)
- B. It will help employees stay better organized
- C. It will prevent the company from collecting too much personal information (PI)
- D. It will help the company meet a federal mandate
Answer: A
NEW QUESTION # 37
Mega Corp. is a U.S.-based business with employees in California, Virginia, and Colorado. Which of the following must Mega Corp. comply with in regard to its human resources data?
- A. California Privacy Rights Act.
- B. California Privacy Rights Act and Colorado Privacy Act.
- C. California Privacy Rights Act and Virginia Consumer Data Protection Act.
- D. California Privacy Rights Act, Virginia Consumer Data Protection Act, and Colorado Privacy Act.
Answer: A
NEW QUESTION # 38
SCENARIO
Please use the following to answer the next QUESTION:
A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer's data handling practices.
The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal dat a. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: "Please act immediately by identifying all personal data received from our company." This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup's rapid market penetration.
As the Company's data privacy leader, you are sensitive to the criticality of the relationship with the retailer.
Under the GDPR, the complainant's request regarding her personal information is known as what?
- A. Right of Removal
- B. Right of Rectification
- C. Right of Access
- D. Right to Be Forgotten
Answer: A
NEW QUESTION # 39
Once a breach has been definitively established, which task should be prioritized next?
- A. Determining what was responsible for the breach and neutralizing the threat.
- B. Involving law enforcement and state Attorneys General.
- C. Implementing remedial measures and evaluating how to prevent future breaches.
- D. Providing notice to the affected parties so they can take precautionary measures.
Answer: D
Explanation:
According to the IAPP CIPP/US study guide, the first priority after a breach has been confirmed is to notify the affected individuals, regulators, and other stakeholders as required by law or contract. This is to allow them to take steps to protect themselves from potential harm, such as identity theft, fraud, or reputational damage. Providing timely and accurate notice also helps to mitigate legal liability, preserve customer trust, and comply with applicable laws and regulations. The other tasks are also important, but they are not the immediate priority after a breach has been established. References: IAPP CIPP/US study guide, Chapter 6, Section 6.4.2, page 211.
NEW QUESTION # 40
Which of the following laws is NOT involved in the regulation of employee background checks?
- A. The U.S. Fair Credit Reporting Act (FCRA).
- B. The Gramm-Leach-Bliley Act (GLBA).
- C. The Civil Rights Act.
- D. The California Investigative Consumer Reporting Agencies Act (ICRAA).
Answer: B
NEW QUESTION # 41
SCENARIO
Please use the following to answer the next QUESTION
Noah is trying to get a new job involving the management of money. He has a poor personal credit rating, but he has made better financial decisions in the past two years.
One potential employer, Arnie's Emporium, recently called to tell Noah he did not get a position. As part of the application process, Noah signed a consent form allowing the employer to request his credit report from a consumer reporting agency (CRA). Noah thinks that the report hurt his chances, but believes that he may not ever know whether it was his credit that cost him the job. However, Noah is somewhat relieved that he was not offered this particular position. He noticed that the store where he interviewed was extremely disorganized. He imagines that his credit report could still be sitting in the office, unsecured.
Two days ago, Noah got another interview for a position at Sam's Market. The interviewer told Noah that his credit report would be a factor in the hiring decision. Noah was surprised because he had not seen anything on paper about this when he applied.
Regardless, the effect of Noah's credit on his employability troubles him, especially since he has tried so hard to improve it. Noah made his worst financial decisions fifteen years ago, and they led to bankruptcy. These were decisions he made as a young man, and most of his debt at the time consisted of student loans, credit card debt, and a few unpaid bills - all of which Noah is still working to pay off. He often laments that decisions he made fifteen years ago are still affecting him today.
In addition, Noah feels that an experience investing with a large bank may have contributed to his financial troubles. In 2007, in an effort to earn money to help pay off his debt, Noah talked to a customer service representative at a large investment company who urged him to purchase stocks. Without understanding the risks, Noah agreed. Unfortunately, Noah lost a great deal of money.
After losing the money, Noah was a customer of another financial institution that suffered a large security breach. Noah was one of millions of customers whose personal information was compromised. He wonders if he may have been a victim of identity theft and whether this may have negatively affected his credit.
Noah hopes that he will soon be able to put these challenges behind him, build excellent credit, and find the perfect job.
Consumers today are most likely protected from situations like the one Noah had buying stock because of which federal action or legislation?
- A. The creation of the Consumer Financial Protection Bureau.
- B. The rules under the Fair Debt Collection Practices Act.
- C. Federal Trade Commission investigations into "unfair and deceptive" acts or practices.
- D. Investigations of "abusive" acts and practices under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Answer: D
Explanation:
The Dodd-Frank Act was established to prevent the risky financial practices that led to the 2007-2008 financial crisis, which included issues similar to Noah's experience with buying stocks without understanding the risks. The act includes provisions forconsumer protection in financial services and aims to prevent abusive practices in the financial industry
NEW QUESTION # 42
Federal laws establish which of the following requirements for collecting personal information of minors under the age of 13?
- A. Affirmative consent of a parent or guardian before collecting personal information of a minor offline (e.g., in person), which also satisfies any requirements for online consent.
- B. Implied consent from a minor's parent or guardian, or affirmative consent from the minor.
- C. Affirmative consent from a minor's parent or guardian before collecting the minor's personal information online.
- D. Implied consent from a minor's parent or guardian before collecting a minor's personal information online, such as when they permit the minor to use the internet.
Answer: C
Explanation:
The Children's Online Privacy Protection Act (COPPA) is a federal law that regulates the online collection and use of personal information from children under 13 years of age. COPPA requires operators of websites or online services that are directed to children, or that knowingly collect personal information from children, to obtain verifiable parental consent before collecting, using, or disclosing such information. Verifiable parental consent means any reasonable effort (taking into consideration available technology) to ensure that before personal information is collected from a child, the child's parent receives notice of the operator's information practices and consents to those practices. COPPA also imposes other obligations on operators, such as providing parents with access to their children's information, maintaining reasonable security measures, and limiting data retention. References: COPPA, IAPP CIPP/US Study Guide, Chapter 2, Section 2.3.1
NEW QUESTION # 43
SCENARIO
Please use the following to answer the next QUESTION:
You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo's business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data.
However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth's security measures.
A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals - ones that exposed the PHI of public figures including celebrities and politicians.
During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual's ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient's attorney has submitted a discovery request for the ePHI exposed in the breach.
Which of the following would be HealthCo's best response to the attorney's discovery request?
- A. Turn over all of the compromised patient records to the plaintiff's attorney
- B. Respond with a redacted document only relative to the plaintiff
- C. Reject the request because the HIPAA privacy rule only permits disclosure for payment, treatment or healthcare operations
- D. Respond with a request for satisfactory assurances such as a qualified protective order
Answer: D
Explanation:
The HIPAA privacy rule establishes national standards to protect individuals' medical records and other individually identifiable health information (collectively defined as "protected health information") and applies to health plans, health care clearinghouses, and those health care providers that conduct certain health care transactions electronically (collectively defined as "covered entities")1 The rule requires appropriate safeguards to protect the privacy of protected health information and sets limits and conditions on the uses and disclosures that may be made of such information without an individual's authorization1 The rule also gives individuals rights over their protected health information, including rights to examine and obtain a copy of their health records, to direct a covered entity to transmit to a third party an electronic copy of their protected health information in an electronic health record, and to request corrections1 The HIPAA privacy rule permits a covered entity to disclose protected health information for the litigation in response to a court order, subpoena, discovery request, or other lawful process, provided the applicable requirements of 45 CFR 164.512 (e) for disclosures for judicial and administrative proceedings are met2 These requirements include:
* In response to a court order or administrative tribunal order, the covered entity may disclose only the protected health information expressly authorized by such order2
* In response to a subpoena, discovery request, or other lawful process that is not accompanied by a court order or administrative tribunal order, the covered entity must receive satisfactory assurances that the party seeking the information has made reasonable efforts to ensure that the individual who is the subject of the information has been given notice of the request, or that the party seeking the information has made reasonable efforts to secure a qualified protective order2
* A qualified protective order is an order of a court or administrative tribunal or a stipulation by the parties to the litigation or administrative proceeding that prohibits the parties from using or disclosing the protected health information for any purpose other than the litigation or proceeding for which such information was requested andrequires the return to the covered entity or destruction of the protected health information (including all copies made) at the end of the litigation or proceeding2 Option A is incorrect because the HIPAA privacy rule does not only permit disclosure for payment, treatment or healthcare operations. The rule also allows disclosure for other purposes, such as public health, research, law enforcement, judicial and administrative proceedings, as long as the applicable conditions and limitations are met1 Option B is correct because it is consistent with the HIPAA privacy rule's requirement for disclosures for judicial and administrative proceedings. By responding with a request for satisfactory assurances such as a qualified protective order, HealthCo is ensuring that the protected health information will be used only for the litigation and will be returned or destroyed afterwards2 Option C is incorrect because it is not consistent with the HIPAA privacy rule's requirement for disclosures for judicial and administrative proceedings. By turning over all of the compromised patient records to the plaintiff's attorney, HealthCo is disclosing more information than necessary and may violate the privacy rights of other individuals who are not parties to the lawsuit2 Option D is incorrect because it is not consistent with the HIPAA privacy rule's requirement for disclosures for judicial and administrative proceedings. By responding with a redacted document only relative to the plaintiff, HealthCo is not providing satisfactory assurances that the protected health information will be used only for the litigation and will be returned or destroyed afterwards2 References: 1: Summary of the HIPAA Privacy Rule | HHS.gov 2: May a covered entity use or disclose protected health information for litigation? | HHS.gov
NEW QUESTION # 44
What is the most important action an organization can take to comply with the FTC position on retroactive changes to a privacy policy?
- A. Reassuring customers of the security of their information.
- B. Obtaining affirmative consent from its customers.
- C. Describing the policy changes on its website.
- D. Publicizing the policy changes through social media.
Answer: B
NEW QUESTION # 45
SCENARIO
Please use the following to answer the next QUESTION:
A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer's data handling practices.
The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal dat a. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: "Please act immediately by identifying all personal data received from our company." This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup's rapid market penetration.
As the Company's data privacy leader, you are sensitive to the criticality of the relationship with the retailer.
At this stage of the investigation, what should the data privacy leader review first?
- A. The company's data privacy policies
- B. Available data flow diagrams
- C. The text of the original complaint
- D. Prevailing regulation on this subject
Answer: D
NEW QUESTION # 46
What privacy concept grants a consumer the right to view and correct errors on his or her credit report?
- A. Action.
- B. Access.
- C. Choice.
- D. Notice.
Answer: B
Explanation:
"Access is the ability to view personal information held by an organization. This may be supplemented by allowing updates or corrections to the information. U.S. laws often provide for access and correction when the information is used for substantive decision-making, such as for credit reports".
NEW QUESTION # 47
Which statute is considered part of U.S. federal privacy law?
- A. The Personal Information Protection and Electronic Documents Act.
- B. SB 1386.
- C. The Fair Credit Reporting Act.
- D. The e-Privacy Directive.
Answer: C
NEW QUESTION # 48
In 2011, the FTC announced a settlement with Google regarding its social networking service Google Buzz.
The FTC alleged that in the process of launching the service, the company did all of the following EXCEPT?
- A. Failed to comply with Safe Harbor principles.
- B. Engaged in deceptive trade practices.
- C. Violated its own privacy policies.
- D. Failed to employ sufficient security safeguards.
Answer: D
Explanation:
The FTC alleged that Google violated its own privacy policies, engaged in deceptive trade practices, and failed to comply with Safe Harbor principles when it launched Google Buzz, a social networking service that automatically enrolled Gmail users and exposed their email contacts and other personal information without their consent or control. The FTC did not allege that Google failed to employ sufficient security safeguards, although it did require Google to implement a comprehensive privacy program and submit to regular privacy audits as part of the settlement. The other statements are incorrect because:
* A. Violated its own privacy policies: The FTC alleged that Google violated its own privacy policies by using information collected from Gmail users for a purpose that wasincompatible with the purpose for which the information was collected, without obtaining their affirmative consent. Google's privacy policy stated that "When you sign up for a particular service that requires registration, we ask you to provide personal information. If we use this information in a manner different than the purpose for which it was collected, then we will ask for your consent prior to such use."1
* B. Engaged in deceptive trade practices: The FTC alleged that Google engaged in deceptive trade practices by misrepresenting the extent to which consumers could exercise control over the collection, use, and sharing of their personal information through Google Buzz. For example, Google offered consumers the option to decline or turn off Google Buzz, but the option was ineffective and did not fully remove the consumer from the social network. Google also misled consumers about how their email contacts would be treated on Google Buzz, and failed to disclose that certain information, such as the user's frequent email contacts, would be made public by default.1
* C. Failed to comply with Safe Harbor principles: The FTC alleged that Google failed to comply with the
U.S.-EU Safe Harbor Framework, which provides a method for U.S. companies to transfer personal data from the European Union to the United States in a way that meets EU data protection requirements.
Google had self-certified to the Department of Commerce that it adhered to the Safe Harbor Privacy Principles, which include notice, choice, access, and enforcement. The FTC alleged that Google's conduct violated the notice and choice principles, as well as the requirement to adhere to the Safe Harbor FAQs.1 References: FTC Charges Deceptive Privacy Practices in Google's Rollout of Its Buzz Social Network, Google, Inc., In the Matter of, Google settles with FTC over Buzz; Privacy policies to be audited for two decades, Google Settles FTC Complaint over Google Buzz Privacy
NEW QUESTION # 49
Which of the following best describes the ASIA-Pacific Economic Cooperation (APEC) principles?
- A. An international court ruling on personal information held in the commercial sector.
- B. A code of responsibilities for medical establishments to uphold privacy laws.
- C. A baseline of marketers' minimum responsibilities for providing opt-out mechanisms.
- D. A bill of rights for individuals seeking access to their personal information.
Answer: D
Explanation:
Explanation/Reference: http://documents1.worldbank.org/curated/en/751621525705087132/text/WPS8431.txt
NEW QUESTION # 50
SCENARIO
Please use the following to answer the next QUESTION
When there was a data breach involving customer personal and financial information at a large retail store, the company's directors were shocked. However, Roberta, a privacy analyst at the company and a victim of identity theft herself, was not. Prior to the breach, she had been working on a privacy program report for the executives. How the company shared and handled data across its organization was a major concern. There were neither adequate rules about access to customer information nor procedures for purging and destroying outdated dat a. In her research, Roberta had discovered that even low- level employees had access to all of the company's customer data, including financial records, and that the company still had in its possession obsolete customer data going back to the 1980s.
Her report recommended three main reforms. First, permit access on an as-needs-to-know basis. This would mean restricting employees' access to customer information to data that was relevant to the work performed. Second, create a highly secure database for storing customers' financial information (e.g., credit card and bank account numbers) separate from less sensitive information. Third, identify outdated customer information and then develop a process for securely disposing of it.
When the breach occurred, the company's executives called Roberta to a meeting where she presented the recommendations in her report. She explained that the company having a national customer base meant it would have to ensure that it complied with all relevant state breach notification laws. Thanks to Roberta's guidance, the company was able to notify customers quickly and within the specific timeframes set by state breach notification laws.
Soon after, the executives approved the changes to the privacy program that Roberta recommended in her report. The privacy program is far more effective now because of these changes and, also, because privacy and security are now considered the responsibility of every employee.
Which principle of the Consumer Privacy Bill of Rights, if adopted, would best reform the company's privacy program?
- A. Consumers have a right to exercise control over how companies use their personal data.
- B. Consumers have a right to easily accessible information about privacy and security practices.
- C. Consumers have a right to reasonable limits on the personal data that a company retains.
- D. Consumers have a right to correct personal data in a manner that is appropriate to the sensitivity.
Answer: C
NEW QUESTION # 51
Who has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA)?
- A. The Consumer Financial Protection Bureau
- B. The Federal Trade Commission
- C. State Attorneys General
- D. The Department of Commerce
Answer: A
Explanation:
The Consumer Financial Protection Bureau (CFPB) has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA), as well as other consumer financial laws. The Dodd-Frank Act, enacted in 2010, transferred most of the rulemaking responsibilities added to the FCRA by the FACTA and the Credit CARD Act from the Federal Trade Commission (FTC) to the CFPB. However, the FTC retains its enforcement authority for the FCRA and the FACTA, along with other federal and state agencies1. The CFPB also shares rulemaking authority for some provisions of the FACTA with the FTC, such as the identity theft red flags and address discrepancy rules2. The Department of Commerce and the State Attorneys General do not have rulemaking authority for the FCRA or the FACTA. References: 1: FTC3, Fair Credit Reporting Act; 2: CFPB4, Fair Credit Reporting Act; 3: FTC; 4: CFPB.
NEW QUESTION # 52
What consumer protection did the Fair and Accurate Credit Transactions Act (FACTA) require?
- A. The truncation of account numbers on credit card receipts
- B. The ability for the consumer to correct inaccurate credit report information
- C. Consumer notice when third-party data is used to make an adverse decision
- D. The right to request removal from e-mail lists
Answer: A
NEW QUESTION # 53
SCENARIO
Please use the following to answer the next QUESTION:
You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo's business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth's security measures.
A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals - ones that exposed the PHI of public figures including celebrities and politicians.
During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual's ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient's attorney has submitted a discovery request for the ePHI exposed in the breach.
What is the most significant reason that the U.S. Department of Health and Human Services (HHS) might impose a penalty on HealthCo?
- A. Because HealthCo did not conduct due diligence to verify or monitor CloudHealth's security measures
- B. Because HIPAA requires the imposition of a fine if a data breach of this magnitude has occurred
- C. Because HealthCo did not require CloudHealth to implement appropriate physical and administrative measures to safeguard the ePHI
- D. Because CloudHealth violated its contract with HealthCo by not encrypting the ePHI
Answer: A
Explanation:
According to the HIPAA Security Rule, covered entities are responsible for ensuring that their business associates comply with the security standards and safeguards required by the rule. This includes conducting due diligence to assess the business associate's security capabilities and practices, and monitoring their performance and compliance. Failure to do so may result in a violation of the rule and a penalty by the HHS.
In this scenario, HealthCo did not perform due diligence on CloudHealth before entering the contract, and did not conduct audits of CloudHealth's security measures. This is the most significant reason why HHS might impose a penalty on HealthCo, as it indicates a lack of oversight and accountability for the protection of ePHI. References:
* HIPAA Security Rule
* HIPAA Business Associate Contracts
* HIPAA Enforcement and Penalties
NEW QUESTION # 54
What role does the U.S. Constitution play in the area of workplace privacy?
- A. It provides significant protections to federal and state governments, but not to private-sector employment
- B. It provides enforcement resources to large employers, but not to small businesses
- C. It provides legal precedent for physical information security, but not for electronic security
- D. It provides contractual protections to members of labor unions, but not to employees at will
Answer: A
Explanation:
The U.S. Constitution has significant workplace privacy provisions that apply to the federal and state governments, but they do not affect private-sector employment. Notably, the Fourth Amendment prohibits unreasonable searches and seizures by state actors. Courts have interpreted this amendment to place limits on the ability of government employers to search employees' private spaces, such as lockers and desks.4 Some states, including California, have extended their constitutional rights to privacy to private-sector employees.5 In general for private-sector actors, however, there is no state action, and no constitutional law governs employment privacy
NEW QUESTION # 55
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