[Nov-2021] Pass CIPP-US Exam in First Attempt UpdatedCIPP-US Prep4away Exam Question
Certified Information Privacy Professional Dumps CIPP-US Exam for Full Questions - Exam Study Guide
Target Audience
This evaluation is designed for data protection officials in the US or those who wish to obtain awareness of how such policies work in the US. The exam, in particular, tests their knowledge and understanding in the field and helps them determine the areas they have to work on. It is also ideal for specialists who want to get the affiliated designation.
NEW QUESTION 91
SCENARIO
Please use the following to answer the next QUESTION
Felicia has spent much of her adult life overseas, and has just recently returned to the U.S. to help her friend Celeste open a jewelry store in Californi a. Felicia, despite being excited at the prospect, has a number of security concerns, and has only grudgingly accepted the need to hire other employees. In order to guard against the loss of valuable merchandise, Felicia wants to carefully screen applicants. With their permission, Felicia would like to run credit checks, administer polygraph tests, and scrutinize videos of interviews. She intends to read applicants' postings on social media, ask Question:s about drug addiction, and solicit character references. Felicia believes that if potential employees are serious about becoming part of a dynamic new business, they will readily agree to these requirements.
Felicia is also in favor of strict employee oversight. In addition to protecting the inventory, she wants to prevent mistakes during transactions, which will require video monitoring. She also wants to regularly check the company vehicle's GPS for locations visited by employees. She also believes that employees who use their own devices for work-related purposes should agree to a certain amount of supervision.
Given her high standards, Felicia is skeptical about the proposed location of the store. She has been told that many types of background checks are not allowed under California law. Her friend Celeste thinks these worries are unfounded, as long as applicants verbally agree to the checks and are offered access to the results. Nor does Celeste share Felicia's concern about state breach notification laws, which, she claims, would be costly to implement even on a minor scale. Celeste believes that even if the business grows a customer database of a few thousand, it's unlikely that a state agency would hassle an honest business if an accidental security incident were to occur.
In any case, Celeste feels that all they need is common sense - like remembering to tear up sensitive documents before throwing them in the recycling bin. Felicia hopes that she's right, and that all of her concerns will be put to rest next month when their new business consultant (who is also a privacy professional) arrives from North Carolina.
Regarding credit checks of potential employees, Celeste has a misconception regarding what?
- A. Disclosure requirements.
- B. Consent requirements.
- C. Records retention policies
- D. Employment-at-will rules.
Answer: B
NEW QUESTION 92
Which statute is considered part of U.S. federal privacy law?
- A. The Personal Information Protection and Electronic Documents Act.
- B. The Fair Credit Reporting Act.
- C. The e-Privacy Directive.
- D. SB 1386.
Answer: B
NEW QUESTION 93
SCENARIO
Please use the following to answer the next QUESTION
Felicia has spent much of her adult life overseas, and has just recently returned to the U.S. to help her friend Celeste open a jewelry store in Californi a. Felicia, despite being excited at the prospect, has a number of security concerns, and has only grudgingly accepted the need to hire other employees. In order to guard against the loss of valuable merchandise, Felicia wants to carefully screen applicants. With their permission, Felicia would like to run credit checks, administer polygraph tests, and scrutinize videos of interviews. She intends to read applicants' postings on social media, ask Question:s about drug addiction, and solicit character references. Felicia believes that if potential employees are serious about becoming part of a dynamic new business, they will readily agree to these requirements.
Felicia is also in favor of strict employee oversight. In addition to protecting the inventory, she wants to prevent mistakes during transactions, which will require video monitoring. She also wants to regularly check the company vehicle's GPS for locations visited by employees. She also believes that employees who use their own devices for work-related purposes should agree to a certain amount of supervision.
Given her high standards, Felicia is skeptical about the proposed location of the store. She has been told that many types of background checks are not allowed under California law. Her friend Celeste thinks these worries are unfounded, as long as applicants verbally agree to the checks and are offered access to the results. Nor does Celeste share Felicia's concern about state breach notification laws, which, she claims, would be costly to implement even on a minor scale. Celeste believes that even if the business grows a customer database of a few thousand, it's unlikely that a state agency would hassle an honest business if an accidental security incident were to occur.
In any case, Celeste feels that all they need is common sense - like remembering to tear up sensitive documents before throwing them in the recycling bin. Felicia hopes that she's right, and that all of her concerns will be put to rest next month when their new business consultant (who is also a privacy professional) arrives from North Carolina.
Based on Felicia's Bring Your Own Device (BYOD) plan, the business consultant will most likely advise Felicia and Celeste to do what?
- A. Make employment decisions based on those willing to consent to the plan in writing.
- B. Adopt the same kind of monitoring policies used for work-issued devices.
- C. Reconsider the plan in favor of a policy of dedicated work devices.
- D. Weigh any productivity benefits of the plan against the risk of privacy issues.
Answer: A
NEW QUESTION 94
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 does Matt come to the decision to report the marketer's activities?
- A. The marketer failed to identify himself and indicate the purpose of the messages
- B. The marketer failed to make an adequate attempt to provide Matt with information
- C. The marketer did not provide evidence that the prize books were appropriate for children
- D. The marketer seems to have distributed his son's information without Matt's permission
Answer: B
NEW QUESTION 95
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. Available data flow diagrams
- B. The text of the original complaint
- C. The company's data privacy policies
- D. Prevailing regulation on this subject
Answer: D
NEW QUESTION 96
If an organization certified under Privacy Shield wants to transfer personal data to a third party acting as an agent, the organization must ensure the third party does all of the following EXCEPT?
- A. Notifies the organization if it can no longer meet its requirements for proper data handling
- B. Provides the same level of privacy protection as the organization
- C. Uses the transferred data for limited purposes
- D. Enters a contract with the organization that states the third party will process data according to the consent agreement
Answer: D
NEW QUESTION 97
A student has left high school and is attending a public postsecondary institution. Under what condition may a school legally disclose educational records to the parents of the student without consent?
- A. If the student has not yet turned 18 years of age
- B. If the student has applied to transfer to another institution
- C. If the student is in danger of academic suspension
- D. If the student is still a dependent for tax purposes
Answer: D
Explanation:
Explanation/Reference: https://www2.ed.gov/policy/gen/guid/fpco/pdf/ferpafaq.pdf
NEW QUESTION 98
Federal laws establish which of the following requirements for collecting personal information of minors under the age of 13?
- A. Affirmative consent from a minor's parent or guardian before collecting the minor's personal information online.
- 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 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.
Answer: A
NEW QUESTION 99
What do the Civil Rights Act, Pregnancy Discrimination Act, Americans with Disabilities Act, Age Discrimination Act, and Equal Pay Act all have in common?
- A. They permit employers to use or disclose personal information specifically about employees who are members of certain classes
- B. They require employers not to discriminate against certain classes when employees use personal information
- C. They require that employers provide reasonable accommodations to certain classes of employees
- D. They afford certain classes of employees' privacy protection by limiting inquiries concerning their personal information
Answer: B
NEW QUESTION 100
What was the original purpose of the Federal Trade Commission Act?
- A. To protect consumers
- B. To enforce antitrust laws
- C. To negotiate consent decrees with companies violating personal privacy
- D. To ensure privacy rights of U.S. citizens
Answer: A
NEW QUESTION 101
Which federal agency plays a role in privacy policy, but does NOT have regulatory authority?
- A. The Office of the Comptroller of the Currency.
- B. The Federal Communications Commission.
- C. The Department of Transportation.
- D. The Department of Commerce.
Answer: C
NEW QUESTION 102
John, a California resident, receives notification that a major corporation with $500 million in annual revenue has experienced a data breach. John's personal information in their possession has been stolen, including his full name and social security numb. John also learns that the corporation did not have reasonable cybersecurity measures in place to safeguard his personal information.
Which of the following answers most accurately reflects John's ability to pursue a legal claim against the corporation under the California Consumer Privacy Act (CCPA)?
- A. John can sue the corporation for the data breach to recover monetary damages suffered as a result of the data breach, and in some circumstances seek statutory damages irrespective of whether he suffered any financial harm.
- B. John cannot sue the corporation for the data breach because only the state's Attoney General has authority to file suit under the CCPA.
- C. John can sue the corporation for the data breach but only to recover monetary damages he actually suffered as a result of the data breach.
- D. John has no right to sue the corporation because the CCPA does not address any data breach rights.
Answer: C
NEW QUESTION 103
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 bill of rights for individuals seeking access to their personal information.
- C. A code of responsibilities for medical establishments to uphold privacy laws.
- D. A baseline of marketers' minimum responsibilities for providing opt-out mechanisms.
Answer: B
Explanation:
Explanation/Reference: http://documents1.worldbank.org/curated/en/751621525705087132/text/WPS8431.txt
NEW QUESTION 104
California's SB 1386 was the first law of its type in the United States to do what?
- A. Require commercial entities to disclose a security data breach concerning personal information about the state's residents
- B. Require state attorney general enforcement of federal regulations against unfair and deceptive trade practices
- C. Require notification of non-California residents of a breach that occurred in California
- D. Require encryption of sensitive information stored on servers that are Internet connected
Answer: A
NEW QUESTION 105
When may a financial institution share consumer information with non-affiliated third parties for marketing purposes?
- A. After disclosing marketing practices to customers and after giving them an opportunity to opt in.
- B. After disclosing marketing practices to customers and after giving them an opportunity to opt out.
- C. After disclosing information-sharing practices to customers and after giving them an opportunity to opt out.
- D. After disclosing information-sharing practices to customers and after giving them an opportunity to opt in.
Answer: C
NEW QUESTION 106
What is the main purpose of the CAN-SPAM Act?
- A. To empower the FTC to create rules for messages containing sexually explicit content
- B. To diminish the use of electronic messages to send sexually explicit materials
- C. To ensure that organizations respect individual rights when using electronic advertising
- D. To authorize the states to enforce federal privacy laws for electronic marketing
Answer: C
Explanation:
Explanation/Reference: https://www.ftc.gov/tips-advice/business-center/guidance/can-spam-act-compliance-guide-business
NEW QUESTION 107
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.
Of the safeguards required by the HIPAA Security Rule, which of the following is NOT at issue due to HealthCo's actions?
- A. Physical Safeguards
- B. Technical Safeguards
- C. Security Safeguards
- D. Administrative Safeguards
Answer: C
NEW QUESTION 108
In 2014, Google was alleged to have violated the Family Educational Rights and Privacy Act (FERPA) through its Apps for Education suite of tools. For what specific practice did students sue the company?
- A. Making student education records publicly available
- B. Scanning emails sent to and received by students
- C. Disclosing education records without obtaining required consent
- D. Relying on verbal consent for a disclosure of education records
Answer: B
NEW QUESTION 109
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. Comprehensive.
- B. Harm-based.
- C. Notice and choice.
- D. Self-regulatory.
Answer: D
NEW QUESTION 110
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 help employees stay better organized
- B. It will increase the security of customers' personal information (PI)
- C. It will prevent the company from collecting too much personal information (PI)
- D. It will help the company meet a federal mandate
Answer: B
Explanation:
Explanation/Reference: https://eits.uga.edu/access_and_security/infosec/pols_regs/policies/dcps/
NEW QUESTION 111
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 regard to telemarketing practices, Evan the supervisor has a misconception regarding?
- A. The conditions under which recipients can opt out
- B. The right to monitor calls for quality assurance
- C. The wishes of recipients who request callbacks
- D. The relationship of state law to federal law
Answer: C
NEW QUESTION 112
Under state breach notification laws, which is NOT typically included in the definition of personal information?
- A. Social Security number
- B. Medical Information
- C. First and last name
- D. State identification number
Answer: B
NEW QUESTION 113
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