Free IAPP CIPP-E Exam Questions

Question 1

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 data.

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 : collects data from European Union websites, which constitutes an establishment in the European Union.

B : offers services in the European Union by identifying data subjects in the European Union

C : collects data from subjects and uses it for automated processing.

D : It monitors the behavior of data subjects in the European Union.

Answer: A

Question 2

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. In preparing the company for its impending lawsuit, Alice's instruction to the company's IT

Department violated Article 5 of the GDPR because the company failed to first do what?

A : nd out consent forms to all of its employees.

B : nimize the amount of data collected for the lawsuit.

C : form all of its employees about the lawsuit.

D : crypt the data from all of its employees.

Answer: B

Question 3

Which of the following is NOT an explicit right granted to data subjects under the GDPR?

A : right to request access to the personal data a controller holds about them.

B : right to request the deletion of data a controller holds about them.

C : right to opt-out of the sale of their personal data to third parties.

D : right to request restriction of processing of personal data, under certain scenarios.

Answer: A

Question 4

Through a combination of hardware failure and human error, the decryption key for a bank’s customer account transaction database has been lost. An investigation has determined that this was not the result of hacking or malfeasance, simply an unfortunate combination of circumstances. Which of the following accurately indicates the nature of this incident?

A : A data breach has not occurred because the loss was not the result of hacking.

B : A data breach has not occurred because no data was exposed to any unauthorized individual.

C : A data breach has occurred because the loss of the key has resulted in the data no longer being accessible.

D : A data breach has occurred because the loss of the key has resulted in the loss of confidentiality or integrity of the data.

Answer: D

Question 5

The European Parliament jointly exercises legislative and budgetary functions with which of the following?

A : European Commission

B : Article 29 Working Party.

C : Council of the European Union

D : European Data Protection Board.

Answer: C