Free IAPP CIPP-E Exam Questions

Question 1

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 is provided by the data processor.

C : If the data protection officer also manages the marketing budget.

D : If the data protection officer receives instructions from the data controller.

Answer: D

Question 2

SCENARIO

Please use the following to answer the next question: You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company's revenue is due to international sales.

The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's questions on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.

When a child asks the toy a question, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's question. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.

In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character's abilities remain intact.

What presents the BIGGEST potential privacy issue with the company's practices?

A : NFC portal can read any data stored in the action figures

B : information about the data processing involved has not been specified

C : cloud service provider is in a country that has not been deemed adequate

D : RFID tag in the action figures has the potential for misuse because of the toy's evolving capabilities

Answer: B

Question 3

SCENARIO -

Please use the following to answer the next question:

Gentle Hedgehog Inc. is a privately owned website design agency incorporated in Italy. The company has numerous remote workers in different EU countries. Recently, the management of Gentle Hedgehog noticed a decrease in productivity of their sales team, especially among remote workers. As a result, the company plans to implement a robust but privacy-friendly remote surveillance system to prevent absenteeism, reward top performers, and ensure the best quality of customer service when sales people are interacting with customers.

Gentle Hedgehog eventually hires Sauron Eye Inc., a Chinese vendor of employee surveillance software whose European headquarters is in Germany. Sauron Eye s software provides powerful remote-monitoring capabilities, including 24/7 access to computer cameras and microphones, screen captures, emails, website history, and keystrokes. Any device can be remotely monitored from a central server that is securely installed at Gentle Hedgehog headquarters. The monitoring is invisible by default; however, a so-called Transparent Mode, which regularly and conspicuously notifies all users about the monitoring and its precise scope, also exists. Additionally, the monitored employees are required to use a built-in verification technology involving facial recognition each time they log in.

All monitoring data, including the facial recognition data, is securely stored in Microsoft Azure cloud servers operated by Sauron Eye, which are physically located in France.

What monitoring may be lawfully performed within the scope of Gentle Hedgehog’s business?

A : Everything offered by Sauron Eye's software with the exception of camera and microphone monitoring.

B : Everything offered by Sauron Eye's software, assuming employees provide daily consent to the monitoring

C : Only video calls conducted during business hours and emails that do not contain a “private” or “personal” tag.

D : Only emails, website browsing history and camera for internal video calls that are expressly marked as monitored.

Answer: D

Question 4

When hiring a data processor, which action would a data controller NOT be able to depend upon to avoid liability in the event of a security breach?

A : Documenting due diligence steps taken in the pre-contractual stage.

B : nducting a risk assessment to analyze possible outsourcing threats.

C : quiring that the processor directly notify the appropriate supervisory authority.

D : intaining evidence that the processor was the best possible market choice available.

Answer: A

Question 5

Which of the following does NOT have to be included in the records most processors must maintain in relation to their data processing activities?

A : me and contact details of each controller on behalf of which the processor is acting

B : tegories of processing carried out on behalf of each controller for which the processor is acting.

C : tails of transfers of personal data to a third country carried out on behalf of each controller for which the processor is acting.

D : tails of any data protection impact assessment conducted in relation to any processing activities carried out by the processor on behalf of each controller for which the processor is acting.

Answer: C