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IAPP Certified Information Privacy Professional/ Canada (CIPP/C) Sample Questions (Q50-Q55):

NEW QUESTION # 50
In March 2012, the FTC released a privacy report that outlined three core principles for companies handling consumer dat a. Which was NOT one of these principles?

A. Simplifying consumer choice.
B. Enhancing security measures.
C. Practicing Privacy by Design.
D. Providing greater transparency.

Answer: B

NEW QUESTION # 51
Under the Personal Information Protection and Electronic Documents Act (PIPEDA), when engaging in a third-party transfer of personal information for processing, an organization is expected to have the technology to protect the information during transit and to?

A. Obtain additional consent for the use of the information by the third party.
B. Establish a contract outlining the individual outsourcing arrangement.
C. Review the cross-border data flow competed and approved by the Treasury Board of Canada Secretariat.
D. Confirm the jurisdictional protections of the receiving organization are the same as PIPEDA.

Answer: B

Explanation:
Under the Personal Information Protection and Electronic Documents Act (PIPEDA), when an organization transfers personal information to a third party for processing, it remains responsible for that information. It is required to use contractual or other means to provide a comparable level of protection while the information is being processed by the third party. The most appropriate answer here is A, establishing a contract outlining the individual outsourcing arrangement. This ensures that the third party adheres to privacy obligations equivalent to those of PIPEDA. This requirement is directly stated in PIPEDA's accountability principle, which mandates organizations to use contractual or other means to provide a comparable level of protection while information is being processed by a third party.

NEW QUESTION # 52
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 state attorney general enforcement of federal regulations against unfair and deceptive trade practices
C. Require commercial entities to disclose a security data breach concerning personal information about the state's residents
D. Require notification of non-California residents of a breach that occurred in California

Answer: C

NEW QUESTION # 53
Why was the Privacy Protection Act of 1980 drafted?

A. To assist prosecutors in civil litigation against newspaper companies
B. To protect individuals from personal privacy invasion by the police
C. To respond to police searches of newspaper facilities
D. To assist in the prosecution of white-collar crimes

Answer: B

NEW QUESTION # 54
SCENARIO
Please use the following to answer the next question:
Dynaroux Fashion ('Dynaroux') is a successful international online clothing retailer that employs approximately 650 people at its headquarters based in Dublin, Ireland. Ronan is their recently appointed data protection officer, who oversees the company's compliance with the General Data Protection Regulation (GDPR) and other privacy legislation.
The company offers both male and female clothing lines across all age demographics, including children. In doing so, the company processes large amounts of information about such customers, including preferences and sensitive financial information such as credit card and bank account numbers.
In an aggressive bid to build revenue growth, Jonas, the CEO, tells Ronan that the company is launching a new mobile app and loyalty scheme that puts significant emphasis on profiling the company's customers by analyzing their purchases. Ronan tells the CEO that: (a) the potential risks of such activities means that Dynaroux needs to carry out a data protection impact assessment to assess this new venture and its privacy implications; and (b) where the results of this assessment indicate a high risk in the absence of appropriate protection measures, Dynaroux may have to undertake a prior consultation with the Irish Data Protection Commissioner before implementing the app and loyalty scheme.
Jonas tells Ronan that he is not happy about the prospect of having to directly engage with a supervisory authority and having to disclose details of Dynaroux's business plan and associated processing activities.
Which of the following facts about Dynaroux would trigger a data protection impact assessment under the GDPR?

A. The company will be undertaking processing activities involving sensitive data categories such as financial and children's data.
B. The company employs approximately 650 people and will therefore be carrying out extensive processing activities.
C. The company intends to shift their business model to rely more heavily on online shopping.
D. The company plans to undertake profiling of its customers through analysis of their purchasing patterns.

Answer: D

NEW QUESTION # 55
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