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Difficulty in writing the IAPP CIPP-US: Certified Information Privacy Professional/United States (CIPP/US) Exam
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NEW QUESTION 13
SCENARIO
Please use the following to answer the next QUESTION:
Larry has become increasingly dissatisfied with his telemarketing position at SunriseLynx, and particularly with his supervisor, Evan. Just last week, he overheard Evan mocking the state's Do Not Call list, as well as the people on it. "If they were really serious about not being bothered," Evan said, "They'd be on the national DNC list. That's the only one we're required to follow. At SunriseLynx, we call until they ask us not to." Bizarrely, Evan requires telemarketers to keep records of recipients who ask them to call "another time." This, to Larry, is a clear indication that they don't want to be called at all. Evan doesn't see it that way.
Larry believes that Evan's arrogance also affects the way he treats employees. The U.S. Constitution protects American workers, and Larry believes that the rights of those at SunriseLynx are violated regularly. At first Evan seemed friendly, even connecting with employees on social medi a. However, following Evan's political posts, it became clear to Larry that employees with similar affiliations were the only ones offered promotions.
Further, Larry occasionally has packages containing personal-use items mailed to work. Several times, these have come to him already opened, even though this name was clearly marked. Larry thinks the opening of personal mail is common at SunriseLynx, and that Fourth Amendment rights are being trampled under Evan's leadership.
Larry has also been dismayed to overhear discussions about his coworker, Sadie. Telemarketing calls are regularly recorded for quality assurance, and although Sadie is always professional during business, her personal conversations sometimes contain sexual comments. This too is something Larry has heard Evan laughing about. When he mentioned this to a coworker, his concern was met with a shrug. It was the coworker's belief that employees agreed to be monitored when they signed on. Although personal devices are left alone, phone calls, emails and browsing histories are all subject to surveillance. In fact, Larry knows of one case in which an employee was fired after an undercover investigation by an outside firm turned up evidence of misconduct. Although the employee may have stolen from the company, Evan could have simply contacted the authorities when he first suspected something amiss.
Larry wants to take action, but is uncertain how to proceed.
In what area does Larry have a misconception about private-sector employee rights?
- A. The applicability of federal law
- B. The definition of tort law
- C. The enforceability of local law
- D. The strict nature of state law
Answer: A
NEW QUESTION 14
What is the main purpose of the CAN-SPAM Act?
- A. To diminish the use of electronic messages to send sexually explicit materials
- B. To authorize the states to enforce federal privacy laws for electronic marketing
- C. To ensure that organizations respect individual rights when using electronic advertising
- D. To empower the FTC to create rules for messages containing sexually explicit content
Answer: C
Explanation:
Explanation/Reference: https://www.ftc.gov/tips-advice/business-center/guidance/can-spam-act-compliance-guide-business
NEW QUESTION 15
What important action should a health care provider take if the she wants to qualify for funds under the Health Information Technology for Economic and Clinical Health Act (HITECH)?
- A. Make electronic health records (EHRs) part of regular care
- B. Keep electronic updates about the Health Insurance Portability and Accountability Act
- C. Send health information and appointment reminders to patients electronically
- D. Bill the majority of patients electronically for their health care
Answer: A
NEW QUESTION 16
Which federal act does NOT contain provisions for preempting stricter state laws?
- A. The Telemarketing Consumer Protection and Fraud Prevention Act
- B. The Fair and Accurate Credit Transactions Act (FACTA)
- C. The Children's Online Privacy Protection Act (COPPA)
- D. The CAN-SPAM Act
Answer: A
NEW QUESTION 17
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 to Be Forgotten
- D. Right of Access
Answer: A
NEW QUESTION 18
SCENARIO
Please use the following to answer the next QUESTION:
Matt went into his son's bedroom one evening and found him stretched out on his bed typing on his laptop. "Doing your network?" Matt asked hopefully.
"No," the boy said. "I'm filling out a survey."
Matt looked over his son's shoulder at his computer screen. "What kind of survey?" "It's asking Questions about my opinions."
"Let me see," Matt said, and began reading the list of Questions that his son had already answered. "It's asking your opinions about the government and citizenship. That's a little odd. You're only ten." Matt wondered how the web link to the survey had ended up in his son's email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.
To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer Questions about his favorite games and toys.
Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son's inbox, and he decided it was time to report the incident to the proper authorities.
How could the marketer have best changed its privacy management program to meet COPPA "Safe Harbor" requirements?
- A. By receiving FTC approval for the content of its emails
- B. By making a COPPA privacy notice available on website
- C. By regularly assessing the security risks to consumer privacy
- D. By participating in an approved self-regulatory program
Answer: A
NEW QUESTION 19
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 Federal Trade Commission (FTC) is typically recognized as having the broadest authority under the FTC Act to address unfair or deceptive privacy practices.
- C. The Federal Communications Commission (FCC) regulates privacy practices on the internet and enforces violations relating to websites' posted privacy disclosures.
- D. 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).
Answer: B
NEW QUESTION 20
SCENARIO
Please use the following to answer the next QUESTION:
Matt went into his son's bedroom one evening and found him stretched out on his bed typing on his laptop. "Doing your network?" Matt asked hopefully.
"No," the boy said. "I'm filling out a survey."
Matt looked over his son's shoulder at his computer screen. "What kind of survey?" "It's asking Questions about my opinions."
"Let me see," Matt said, and began reading the list of Questions that his son had already answered. "It's asking your opinions about the government and citizenship. That's a little odd. You're only ten." Matt wondered how the web link to the survey had ended up in his son's email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.
To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer Questions about his favorite games and toys.
Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son's inbox, and he decided it was time to report the incident to the proper authorities.
Based on the incident, the FTC's enforcement actions against the marketer would most likely include what violation?
- A. Disregarding the privacy policy of the children's marketing industry.
- B. Intruding upon the privacy of a family with young children.
- C. Failing to notify of a breach of children's private information.
- D. Collecting information from a child under the age of thirteen.
Answer: A
NEW QUESTION 21
The Cable Communications Policy Act of 1984 requires which activity?
- A. Delivery of an annual notice detailing how subscriber information is to be used
- B. Obtaining subscriber consent for disseminating any personal information necessary to render cable services
- C. Destruction of personal information a maximum of six months after it is no longer needed
- D. Notice to subscribers of any investigation involving unauthorized reception of cable services
Answer: D
NEW QUESTION 22
In which situation would a policy of "no consumer choice" or "no option" be expected?
- A. When a patient's health record is made available to a pharmaceutical company
- B. When a job applicant's credit report is provided to an employer
- C. When a customer's street address is shared with a shipping company
- D. When a customer's financial information is requested by the government
Answer: C
NEW QUESTION 23
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. Federal Trade Commission investigations into "unfair and deceptive" acts or practices.
- B. The rules under the Fair Debt Collection Practices Act.
- C. Investigations of "abusive" acts and practices under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
- D. The creation of the Consumer Financial Protection Bureau.
Answer: C
NEW QUESTION 24
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 before collecting a minor's personal information online, such as when they permit the minor to use the internet.
- C. Implied consent from a minor's parent or guardian, or affirmative consent from the minor.
- D. Affirmative consent from a minor's parent or guardian before collecting the minor's personal information online.
Answer: D
Explanation:
Explanation/Reference: https://www.ftc.gov/tips-advice/business-center/guidance/complying-coppa-frequently-asked- questions-0
NEW QUESTION 25
California's SB 1386 was the first law of its type in the United States to do what?
- A. Require encryption of sensitive information stored on servers that are Internet connected
- B. Require notification of non-California residents of a breach that occurred in California
- C. Require commercial entities to disclose a security data breach concerning personal information about the state's residents
- D. Require state attorney general enforcement of federal regulations against unfair and deceptive trade practices
Answer: C
Explanation:
Explanation/Reference: https://corporate.findlaw.com/law-library/california-raises-the-bar-on-data-security-and-privacy.html
NEW QUESTION 26
What does the Massachusetts Personal Information Security Regulation require as it relates to encryption of personal information?
- A. The encryption of all personal information stored in Massachusetts-based companies when all equipment is located in Massachusetts.
- B. The encryption of personal information stored in Massachusetts-based companies when stored on portable devices.
- C. The encryption of all personal information of Massachusetts residents when stored on portable devices.
- D. The encryption of all personal information of Massachusetts residents when all equipment is located in Massachusetts.
Answer: C
NEW QUESTION 27
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.
Based on the scenario, which of the following would have helped Janice to better meet the company's needs?
- A. Spending more time understanding the company's information goals
- B. Explaining the importance of transparency in implementing a new policy
- C. Removing the financial burden of the company's employee training program
- D. Creating a more comprehensive plan for implementing a new policy
Answer: A
NEW QUESTION 28
Which of the following is most likely to provide privacy protection to private-sector employees in the United States?
- A. State law, contract law, and tort law
- B. Amendments one, four, and five of the U.S. Constitution
- C. The U.S. Department of Health and Human Services (HHS)
- D. The Federal Trade Commission Act (FTC Act)
Answer: A
NEW QUESTION 29
In 2012, the White House and the FTC both issued reports advocating a new approach to privacy enforcement that can best be described as what?
- A. Notice and choice.
- B. Self-regulatory.
- C. Comprehensive.
- D. Harm-based.
Answer: B
NEW QUESTION 30
Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
- A. Financial institutions must avoid collecting a customer's sensitive personal information
- B. Financial institutions must cease sending e-mails and other forms of advertising to customers who opt out of direct marketing
- C. Financial institutions must use a prescribed level of encryption for most types of customer records
- D. Financial institutions must help ensure a customer's understanding of products and services
Answer: D
NEW QUESTION 31
Within what time period must a commercial message sender remove a recipient's address once they have asked to stop receiving future e-mail?
- A. 15 days
- B. 21 days
- C. 10 days
- D. 7 days
Answer: C
NEW QUESTION 32
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