Free IAPP CIPP-E Exam Questions

Question 1

SCENARIO Please use the following to answer the next question: Louis, a long-time customer of Bedrock Insurance, was involved in a minor car accident a few months ago. Although no one was hurt, Louis has been plagued by texts and calls from a company called Accidentable offering to help him recover compensation for personal injury. Louis has heard about insurance companies selling customers' data to third parties, and he's convinced that Accidentable must have gotten his information from Bedrock Insurance.

Louis has also been receiving an increased amount of marketing information from Bedrock, trying to sell him their full range of their insurance policies.

Perturbed by this, Louis has started looking at price comparison sites on the internet and has been shocked to find that other insurers offer much cheaper rates than Bedrock, even though he has been a loyal customer for many years. When his Bedrock policy comes up for renewal, he decides to switch to Zantrum Insurance.
In order to activate his new insurance policy, Louis needs to supply Zantrum with information about his No Claims bonus, his vehicle and his driving history. After researching his rights under the GDPR, he writes to ask Bedrock to transfer his information directly to Zantrum. He also takes this opportunity to ask Bedrock to stop using his personal data for marketing purposes.

Bedrock supplies Louis with a PDF and XML (Extensible Markup Language) versions of his No Claims Certificate, but tells Louis it cannot transfer his data directly to Zantrum as this is not technically feasible. Bedrock also explains that Louis's contract included a provision whereby Louis agreed that his data could be used for marketing purposes; according to Bedrock, it is too late for Louis to change his mind about this. It angers Louis when he recalls the wording of the contract, which was filled with legal jargon and very confusing.

In the meantime, Louis is still receiving unwanted calls from Accidentable Insurance. He writes to Accidentable to ask for the name of the organization that supplied his details to them. He warns Accidentable that he plans to complain to the data protection authority, because he thinks their company has been using his data unlawfully. His letter states that he does not want his data being used by them in any way.

Accidentable's response letter confirms Louis's suspicions. Accidentable is Bedrock Insurance's wholly owned subsidiary, and they received information about Louis's accident from Bedrock shortly after Louis submitted his accident claim. Accidentable assures Louis that there has been no breach of the GDPR, as Louis's contract included, a provision in which he agreed to share his information with Bedrock's affiliates for business purposes. Louis is disgusted by the way in which he has been treated by Bedrock, and writes to them insisting that all his information be erased from their computer system. After Louis has exercised his right to restrict the use of his data, under what conditions would Accidentable have grounds for refusing to comply?

A : Accidentable is entitled to use of the data as an affiliate of Bedrock.

B : If Accidentable also uses the data to conduct public health research.

C : If the data becomes necessary to defend Accidentable's legal rights.

D : the accuracy of the data is not an aspect that Louis is disputing.

Answer: A

Question 2

Start-up company MagicAl is developing an AI system that will be part of a medical device that detects skin cancer. To take measures against potential bias in its AI system, the IT team decides to collect data about users’ ethnic origin, nationality, and gender.Start-up company MagicAl is developing an AI system that will be part of a medical device that detects skin cancer. To take measures against potential bias in its AI system, the IT team decides to collect data about users’ ethnic origin, nationality, and gender.

A : Processing necessary for scientific or statistical purposes.

B : Processing necessary for reasons of substantial public interest.

C : Processing necessary for purposes of preventive or occupational medicine.

D : Processing necessary for the defense of legal claims in potential negligence cases.

Answer: C

Question 3

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 4

The GDPR forbids the practice of "forum shopping", which occurs when companies do what?

A : Choose the data protection officer that is most sympathetic to their business concerns.

B : ignate their main establishment in member state with the most flexible practices.

C : le appeals of infringement judgments with more than one EU institution simultaneously.

D : lect third-party processors on the basis of cost rather than quality of privacy protection.

Answer: B

Question 5

What is the most frequently used mechanism for legitimizing cross-border data transfer?

A : andard Contractual Clauses.

B : proved Code of Conduct.

C : nding Corporate Rules

D : rogations

Answer: A