[May 09, 2024] Fully Updated Certified Information Privacy Professional (CIPP-E) Certification Sample Questions
Latest IAPP CIPP-E Real Exam Dumps PDF
The CIPP-E certification is an essential credential for anyone interested in a career in privacy and data protection in the EU. Certified Information Privacy Professional/Europe (CIPP/E) certification provides candidates with the knowledge and skills they need to navigate the complex world of privacy laws and regulations in the EU. It is also highly valued by employers and can open up many career opportunities.
NEW QUESTION # 27
According to the E-Commerce Directive 2000/31/EC, where is the place of "establishment" for a company providing services via an Internet website confirmed by the GDPR?
- A. Where the decisions about processing are made
- B. Where the website is accessed
- C. Where the technology supporting the website is located
- D. Where the customer's Internet service provider is located
Answer: D
Explanation:
Explanation/Reference: https://www.ohiobar.org/member-tools-benefits/publications/Ohio-Lawyer/the-european-general- data-protection-regulation-gdpr/
NEW QUESTION # 28
SCENARIO
Please use the following to answer the next question:
Joe started the Gummy Bear Company in 2000 from his home in Vermont, USA. Today, it is a multi-billion-dollar candy company operating in every continent. All of the company's IT servers are located in Vermont. This year Joe hires his son Ben to join the company and head up Project Big, which is a major marketing strategy to triple gross revenue in just 5 years. Ben graduated with a PhD in computer software from a top university. Ben decided to join his father's company, but is also secretly working on launching a new global online dating website company called Ben Knows Best.
Ben is aware that the Gummy Bear Company has millions of customers and believes that many of them might also be interested in finding their perfect match. For Project Big, Ben redesigns the company's online web portal and requires customers in the European Union and elsewhere to provide additional personal information in order to remain a customer. Project Ben begins collecting data about customers' philosophical beliefs, political opinions and marital status.
If a customer identifies as single, Ben then copies all of that customer's personal data onto a separate database for Ben Knows Best. Ben believes that he is not doing anything wrong, because he explicitly asks each customer to give their consent by requiring them to check a box before accepting their information. As Project Big is an important project, the company also hires a first year college student named Sam, who is studying computer science to help Ben out.
Ben calls out and Sam comes across the Ben Knows Best database. Sam is planning on going to Ireland over Spring Beak with 10 of his friends, so he copies all of the customer information of people that reside in Ireland so that he and his friends can contact people when they are in Ireland.
Joe also hires his best friend's daughter, Alice, who just graduated from law school in the U.S., to be the company's new General Counsel. Alice has heard about the GDPR, so she does some research on it. Alice approaches Joe and informs him that she has drafted up Binding Corporate Rules for everyone in the company to follow, as it is important for the company to have in place a legal mechanism to transfer data internally from the company's operations in the European Union to the U.S.
Joe believes that Alice is doing a great job, and informs her that she will also be in-charge of handling a major lawsuit that has been brought against the company in federal court in the U.S. To prepare for the lawsuit, Alice instructs the company's IT department to make copies of the computer hard drives from the entire global sales team, including the European Union, and send everything to her so that she can review everyone's information. Alice believes that Joe will be happy that she did the first level review, as it will save the company a lot of money that would otherwise be paid to its outside law firm.
The data transfer mechanism that Alice drafted violates the GDPR because the company did not first get approval from?
- A. The Data Protection Authority.
- B. The European Data Protection Board.
- C. The European Commission.
- D. The Court of Justice of the European Union.
Answer: A
NEW QUESTION # 29
SCENARIO
Please use the following to answer the next question:
BHealthy, a company based in Italy, is ready to launch a new line of natural products, with a focus on sunscreen. The last step prior to product launch is for BHealthy to conduct research to decide how extensively to market its new line of sunscreens across Europe. To do so, BHealthy teamed up with Natural Insight, a company specializing in determining pricing for natural products. BHealthy decided to share its existing customer information - name, location, and prior purchase history - with Natural Insight. Natural Insight intends to use this information to train its algorithm to help determine the price point at which BHealthy can sell its new sunscreens.
Prior to sharing its customer list, BHealthy conducted a review of Natural Insight's security practices and concluded that the company has sufficient security measures to protect the contact information. Additionally, BHealthy's data processing contractual terms with Natural Insight require continued implementation of technical and organization measures. Also indicated in the contract are restrictions on use of the data provided by BHealthy for any purpose beyond provision of the services, which include use of the data for continued improvement of Natural Insight's machine learning algorithms.
Under the GDPR, what are Natural Insight's security obligations with respect to the customer information it received from BHealthy?
- A. The level of security that a reasonable data subject whose data is processed would expect in relation to the data subject's purchase history.
- B. Only the security measures assessed by BHealthy prior to entering into the data processing contract.
- C. Absolute security since BHealthy is sharing personal data, including purchase history, with Natural Insight.
- D. Appropriate security that takes into account the industry practices for protecting customer contact information and purchase history.
Answer: D
NEW QUESTION # 30
What is true of both the General Data Protection Regulation (GDPR) and the Council of Europe Convention
108?
- A. Both govern international transfers of personal data
- B. Both govern the manual processing of personal data
- C. Both require notification of processing activities to a supervisory authority
- D. Both only apply to European Union countries
Answer: C
NEW QUESTION # 31
Under the GDPR, which essential pieces of information must be provided to data subjects before collecting their personal data?
- A. The identity and contact details of the controller and the reasons the data is being collected.
- B. The contact information of the controller and a description of the retention policy.
- C. The name/s of relevant government agencies involved and the steps needed for revising the data.
- D. The authority by which the controller is collecting the data and the third parties to whom the data will be sent.
Answer: A
NEW QUESTION # 32
Which type of personal data does the GDPR define as a "special category" of personal data?
- A. Closed Circuit Television (CCTV) footage.
- B. Trade-union membership.
- C. Educational history.
- D. Financial information.
Answer: B
Explanation:
According to Article 9 of the GDPR, special category data is personal data that needs more protection because it is sensitive. The GDPR defines 10 types of personal data as special categories, which are:
personal data revealing racial or ethnic origin;
personal data revealing political opinions;
personal data revealing religious or philosophical beliefs;
personal data revealing trade union membership;
genetic data;
biometric data (where used for identification purposes);
data concerning health;
data concerning a person's sex life; and
data concerning a person's sexual orientation.
Among the answer choices, only option B falls under one of these categories, as trade union membership is considered to reveal political opinions or beliefs. Option A, C and D are not considered as special category data, as they do not reveal any sensitive information about the data subject. However, they are still subject to the general principles and rules of the GDPR, such as lawfulness, fairness, transparency, accuracy, security, etc. Reference:
Special category data | ICO
Art. 9 GDPR Processing of special categories of personal data
Special Categories of Data - International Association of Privacy Professionals
NEW QUESTION # 33
In which of the following cases would an organization MOST LIKELY be required to follow both ePrivacy and data protection rules?
- A. When emailing a customer to announce that his recent order should arrive earlier than expected.
- B. When calling a potential customer to notify her of an upcoming product sale.
- C. When creating an untargeted pop-up ad on a website.
- D. When paying a search engine company to give prominence to certain products and services within specific search results.
Answer: A
Explanation:
Reference https://www.privacytrust.com/guidance/gdpr-vs-eprivacy-regulation.html
NEW QUESTION # 34
If a company chooses to ground an international data transfer on the contractual route, which of the following is NOT a valid set of standard contractual clauses?
- A. Decision 2007/72/EC (EU processor to non-EU or EEA controller).
- B. Decision 2010/87/EU (Non-EU or EEA processor from EU controller).
- C. Decision 2004/915/EC (EU controller to non-EU or EEA controller).
- D. Decision 2001/497/EC (EU controller to non-EU or EEA controller).
Answer: A
Explanation:
This is not a valid set of standard contractual clauses because it does not correspond to any of the decisions adopted by the European Commission under the GDPR or the previous Data Protection Directive 95/46. The correct decision for EU processor to non-EU or EEA controller is Decision 2010/87/EU, which was amended by Decision 2004/915/EC. Decision 2007/72/EC is actually related to the recognition of the adequacy of the protection of personal data in Switzerland. Reference:
Free CIPP/E Study Guide, page 18, section 3.4.2
Standard contractual clauses for international transfers, section 1.1
Standard Contractual Clauses (SCC), section 2.1
Decision 2007/72/EC
NEW QUESTION # 35
According to the GDPR, how is pseudonymous personal data defined?
- A. Data that can no longer be attributed to a specific data subject without the use of additional information kept separately.
- B. Data that has been encrypted or is subject to other technical safeguards.
- C. Data that can no longer be attributed to a specific data subject, with no possibility of re-identifying the data.
- D. Data that has been rendered anonymous in such a manner that the data subject is no longer identifiable.
Answer: A
Explanation:
Explanation/Reference: https://www.chino.io/blog/what-is-pseudonymous-data-according-to-the-gdpr/
NEW QUESTION # 36
Bioface is a company based in the United States. It has no servers, personnel or assets in the European Union. By collecting photographs from social media and other web-based services, such as newspapers and blogs, it uses machine learning to develop a facial recognition algorithm. The algorithm identifies individuals in photographs who are not in its data set based the algorithm and its existing dat a. The service collects photographs of data subjects in the European Union and will identify them if presented with their photographs. Bioface offers its service to government agencies and companies in the United States and Canada, but not to those in the European Union. Bioface does not offer the service to individuals.
Why is Bioface subject to the territorial scope of the General Data Protection Regulation?
- A. It offers services in the European Union by identifying data subjects in the European Union.
- B. It collects data from subjects and uses it for automated processing.
- C. It collects data from European Union websites, which constitutes an establishment in the European Union.
- D. It monitors the behavior of data subjects in the European Union.
Answer: C
NEW QUESTION # 37
What is the main task of the European Data Protection Board?
- A. To assess adequacy of data protection in third countries
- B. To proactively prevent disputes between national supervisory authorities.
- C. To ensure consistent application of the GDPR.
- D. To publish guidelines tor data subjects on how to property enforce their rights
Answer: C
NEW QUESTION # 38
SCENARIO
Please use the following to answer the next question:
Financially, it has been a very good year at ARRA Hotels: Their 21 hotels, located in Greece (5), Italy (15) and Spain (1), have registered their most profitable results ever. To celebrate this achievement, ARRA Hotels' Human Resources office, based in ARRA's main Italian establishment, has organized a team event for its 420 employees and their families at its hotel in Spain.
Upon arrival at the hotel, each employee and family member is given an electronic wristband at the reception desk. The wristband serves a number of functions:
. Allows access to the "party zone" of the hotel, and emits a buzz if the user approaches any unauthorized areas
. Allows up to three free drinks for each person of legal age, and emits a buzz once this limit has been reached
. Grants a unique ID number for participating in the games and contests that have been planned.
Along with the wristband, each guest receives a QR code that leads to the online privacy notice describing the use of the wristband. The page also contains an unchecked consent checkbox. In the case of employee family members under the age of 16, consent must be given by a parent.
Among the various activities planned for the event, ARRA Hotels' HR office has autonomously set up a photocall area, separate from the main event venue, where employees can come and have their pictures taken in traditional carnival costume.
The photos will be posted on ARRA Hotels' main website for general marketing purposes.
On the night of the event, an employee from one of ARRA's Greek hotels is displeased with the results of the photos in which he appears. He intends to file a complaint with the relevant supervisory authority in regard to the following:
. The lack of any privacy notice in the separate photocall area
The unlawful cross-border processing of his personal data
. The unacceptable aesthetic outcome of his photos
Which of the following is NOT necessarily considered a factor in identifying whether the processing could be considered a "cross-border processing"?
- A. The total number of the data subjects interested.
- B. The exposure of the information of the data subjects involved.
- C. The potential harm for the data subjects affected.
- D. The limitation of rights of the data subjects concerned.
Answer: A
Explanation:
Cross-border processing is defined in Article 4(23) of the GDPR as either:
* processing of personal data which takes place in the context of the activities of establishments in more than one Member State of a controller or processor in the Union where the controller or processor is established in more than one Member State; or
* processing of personal data which takes place in the context of the activities of a single establishment of a controller or processor in the Union but which substantially affects or is likely to substantially affect data subjects in more than one Member State.
Therefore, the factors that are relevant for identifying whether the processing could be considered a cross-border processing are:
* the location and number of establishments of the controller or processor in the EU;
* the connection between the processing and the activities of the establishments;
* the substantial effect or likelihood of substantial effect on data subjects in more than one Member State.
The total number of the data subjects interested is not necessarily a factor, as the processing could affect only a few data subjects but still have a substantial impact on them. For example, a processing that involves the disclosure of sensitive personal data of a small group of data subjects in different Member States could be considered a cross-border processing.
Reference:
* GDPR Article 4 - Definitions1
* Guidelines 8/2022 on identifying a controller or processor's lead supervisory authority2
NEW QUESTION # 39
Under which of the following conditions does the General Data Protection Regulation NOT apply to the processing of personal data?
- A. When the personal data is processed only in non-electronic form
- B. When the personal data is processed by an individual only for their household activities
- C. When the personal data is collected and then pseudonymised by the controller
- D. When the personal data is held by the controller but not processed for further purposes
Answer: B
Explanation:
The GDPR applies to the processing of personal data wholly or partly by automated means and to the processing other than by automated means of personal data which form part of a filing system or are intended to form part of a filing system1. However, the GDPR does not apply to the processing of personal data by a natural person in the course of a purely personal or household activity2. This means that individuals can process personal data without being subject to the GDPR, as long as the processing is not related to a professional or commercial activity. For example, the GDPR does not apply to an individual who keeps a personal address book or who posts photos of their family and friends on a social media platform, as long as the platform is not used for business purposes3. Reference: 1: Article 2(1) of the GDPR 2: Article 2(2) of the GDPR 3: Recital 18 of the GDPR
NEW QUESTION # 40
Articles 13 and 14 of the GDPR provide details on the obligation of data controllers to inform data subjects when collecting personal dat a. However, both articles specify an exemption for situations in which the data subject already has the information.
Which other situation would also exempt the data controller from this obligation under Article 14?
- A. When providing the information would involve a disproportionate effort
- B. When providing the information would go against a police order.
- C. When the personal data was obtained 5 years before the entry into force of the GDPR
- D. When the personal data was obtained through multiple source in the public domain
Answer: A
NEW QUESTION # 41
A data controller appoints a data protection officer. Which of the following conditions would NOT result in an infringement of Articles 37 to 39 of the GDPR?
- A. If the data protection officer lacks ISO 27001 auditor certification.
- B. If the data protection officer receives instructions from the data controller.
- C. If the data protection officer is provided by the data processor.
- D. If the data protection officer also manages the marketing budget.
Answer: B
NEW QUESTION # 42
In which of the following cases would an organization MOST LIKELY be required to follow both ePrivacy and data protection rules?
- A. When calling a potential customer to notify her of an upcoming product sale.
- B. When emailing a customer to announce that his recent order should arrive earlier than expected.
- C. When creating an untargeted pop-up ad on a website.
- D. When paying a search engine company to give prominence to certain products and services within specific search results.
Answer: D
Explanation:
The ePrivacy Directive (ePD) and the General Data Protection Regulation (GDPR) are two EU laws that regulate different aspects of personal data processing. The ePD focuses on electronic communications and the use of cookies and similar technologies, while the GDPR covers the broader principles and rights of data protection. Both laws apply to any organization that processes personal data of individuals in the EU, regardless of where the organization is located.
Option D involves both electronic communication and personal data processing, and therefore requires compliance with both ePD and GDPR. Paying a search engine company to give prominence to certain products and services within specific search results implies the use of cookies or similar technologies to track the online behavior of users and target them with personalized ads. This requires the consent of the users under the ePD, as well as the provision of clear and comprehensive information about the purpose and scope of the data processing. Moreover, the organization must comply with the GDPR requirements for data protection by design and by default, data minimization, data security, data subject rights, and accountability.
Option A only involves the use of cookies or similar technologies, and therefore only requires compliance with the ePD. Creating an untargeted pop-up ad on a website does not involve the processing of personal data, as the ad is not based on the online behavior or preferences of the users. However, the organization must still obtain the consent of the users for the use of cookies or similar technologies, and provide them with clear and comprehensive information about the purpose and scope of the data processing.
Option B only involves the processing of personal data, and therefore only requires compliance with the GDPR. Calling a potential customer to notify her of an upcoming product sale involves the collection and use of the customer's personal data, such as name, phone number, and purchase history. The organization must have a lawful basis for the data processing, such as consent, contract, or legitimate interest, and must respect the data subject rights, such as the right to object, the right to access, and the right to erasure.
Option C only involves the processing of personal data, and therefore only requires compliance with the GDPR. Emailing a customer to announce that his recent order should arrive earlier than expected involves the use of the customer's personal data, such as name, email address, and order details. The organization must have a lawful basis for the data processing, such as consent, contract, or legitimate interest, and must respect the data subject rights, such as the right to object, the right to access, and the right to erasure. Reference:
Free CIPP/E Study Guide, page 15, section 2.3.3
CIPP/E Certification, page 10, section 1.1.2
Cipp-e Study guides, Class notes & Summaries, document "CIPP/E Exam Summary 2023", page 42, section 2.3.3 ePrivacy: The EU's other data protection rule The New Rules of Data Privacy A guide to GDPR data privacy requirements A guide to the data protection principles
NEW QUESTION # 43
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The CIPP-E certification is particularly relevant for professionals who work with personal data and are responsible for ensuring compliance with the General Data Protection Regulation (GDPR). GDPR is a regulation that came into effect in May 2018 and is applicable to all organizations that process personal data of EU citizens, regardless of where the organization is located. The regulation has a significant impact on how personal data is collected, processed, stored, and secured, and failure to comply with GDPR can result in severe penalties.
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