CIPP-E IAPP Exam Questions and Free Practice Test

Question 31

Under the GDPR, which of the following is true in regard to adequacy decisions involving cross-border
transfers?

A. The European Commission can adopt an adequacy decision for individual companies.

B. The European Commission can adopt, repeal or amend an existing adequacy decision.

C. EU member states are vested with the power to accept or reject a European Commission adequacy decision.

D. To be considered as adequate, third countries must implement the EU General Data Protection Regulation into their national legislation.

Correct Answer:A

Question 32

Which type of personal data does the GDPR define as a “special category” of personal data?

A. Educational history.

B. Trade-union membership.

C. Closed Circuit Television (CCTV) footage.

D. Financial information.

Correct Answer:B

Question 33

A company plans to transfer employee health information between two of its entities in France. To maintain the security of the processing, what would be the most important security measure to apply to the health data transmission?

A. Inform the data subject of the security measures in place.

B. Ensure that the receiving entity has signed a data processing agreement.

C. Encrypt the transferred data in transit and at rest.

D. Conduct a data protection impact assessment.

Correct Answer:A

Question 34

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. The NFC portal can read any data stored in the action figures

B. The information about the data processing involved has not been specified

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

D. The RFID tag in the action figures has the potential for misuse because of the toy’s evolving capabilities

Correct Answer:B

Question 35

Which area of privacy is a lead supervisory authority’s (LSA) MAIN concern?

A. Data subject rights

B. Data access disputes

C. Cross-border processing

D. Special categories of data

Correct Answer:C

Question 36

A well-known video production company, based in Spain but specializing in documentaries filmed worldwide, has just finished recording several hours of footage featuring senior citizens in the streets of Madrid. Under what condition would the company NOT be required to obtain the consent of everyone whose image they use for their documentary?

A. If obtaining consent is deemed to involve disproportionate effort.

B. If obtaining consent is deemed voluntary by local legislation.

C. If the company limits the footage to data subjects solely of legal age.

D. If the company’s status as a documentary provider allows it to claim legitimate interest.

Correct Answer:B

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