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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q142-Q147):

NEW QUESTION # 142
When does the Telemarketing Sales Rule require an entity to share a do-not-call request across its organization?

A. When a call is not the result of an error or other unforeseen cause
B. When the entity manages user preferences through multiple platforms
C. When the operational structures of its divisions are not transparent
D. When the goods and services sold by its divisions are very similar

Answer: A

NEW QUESTION # 143
SCENARIO
Please use the following to answer the next QUESTION
When there was a data breach involving customer personal and financial information at a large retail store, the company's directors were shocked. However, Roberta, a privacy analyst at the company and a victim of identity theft herself, was not. Prior to the breach, she had been working on a privacy program report for the executives. How the company shared and handled data across its organization was a major concern. There were neither adequate rules about access to customer information nor procedures for purging and destroying outdated data. In her research, Roberta had discovered that even low- level employees had access to all of the company's customer data, including financial records, and that the company still had in its possession obsolete customer data going back to the 1980s.
Her report recommended three main reforms. First, permit access on an as-needs-to-know basis. This would mean restricting employees' access to customer information to data that was relevant to the work performed.
Second, create a highly secure database for storing customers' financial information (e.g., credit card and bank account numbers) separate from less sensitive information. Third, identify outdated customer information and then develop a process for securely disposing of it.
When the breach occurred, the company's executives called Roberta to a meeting where she presented the recommendations in her report. She explained that the company having a national customer base meant it would have to ensure that it complied with all relevant state breach notification laws. Thanks to Roberta's guidance, the company was able to notify customers quickly and within the specific timeframes set by state breach notification laws.
Soon after, the executives approved the changes to the privacy program that Roberta recommended in her report. The privacy program is far more effective now because of these changes and, also, because privacy and security are now considered the responsibility of every employee.
Which principle of the Consumer Privacy Bill of Rights, if adopted, would best reform the company's privacy program?

A. Consumers have a right to reasonable limits on the personal data that a company retains.
B. Consumers have a right to exercise control over how companies use their personal data.
C. Consumers have a right to correct personal data in a manner that is appropriate to the sensitivity.
D. Consumers have a right to easily accessible information about privacy and security practices.

Answer: A

Explanation:
The Consumer Privacy Bill of Rights is a set of principles proposed by the Obama administration in 2012 to protect the privacy of consumers online and offline. The principles are based on the Fair Information Practice Principles, which are widely accepted as the foundation of privacy protection. One of the principles is the right to reasonable limits on the personal data that a company retains, which means that companies should collect and keep only the personal data they need for legitimate purposes, and dispose of it securely when it is no longer needed. This principle would best reform the company's privacy program in the scenario, as it would address the major concerns that Roberta identified in her report, such as the lack of rules and procedures for purging and destroying outdated data, and the excessive access to customer information by low-level employees. By implementing reasonable limits on the personal data that the company retains, the company would reduce the risk of data breaches, enhance customer trust, and comply with state breach notification laws. References:
* Fact Sheet: Plan to Protect Privacy in the Internet Age by Adopting a Consumer Privacy Bill of Rights
* IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1: Introduction to U.S.
Privacy Law, Section 1.2: The Consumer Privacy Bill of Rights

NEW QUESTION # 144
The rules for "e-discovery" mainly prevent which of the following?

A. The practice of employees using personal devices for work
B. The loss of information due to poor data retention practices
C. A conflict between business practice and technological safeguards
D. A breach of an organization's data retention program

Answer: B

Explanation:
Page 346 of the learning material - ".....e-discovery rules, which require automated and large-scale production of emails and other corporate documents during the discovery process prior to trial".

NEW QUESTION # 145
An organization self-certified under Privacy Shield must, upon request by an individual, do what?

A. Provide the identities of third and fourth parties that may potentially receive personal information.
B. Identify all personal information disclosed during a criminal investigation.
C. Suspend the use of all personal information collected by the organization to fulfill its original purpose.
D. Provide the identities of third parties with whom the organization shares personal information.

Answer: D

Explanation:
Explanation/Reference: https://www.lakesidesoftware.com/sites/default/files/Privacy_Shield_Privacy_Statement.pdf

NEW QUESTION # 146
What is the main challenge financial institutions face when managing user preferences?

A. Ensuring they are in compliance with numerous complex state and federal privacy laws
B. Developing a mechanism for opting out that is easy for their consumers to navigate
C. Ensuring that preferences are applied consistently across channels and platforms
D. Determining the legal requirements for sharing preferences with their affiliates

Answer: C

NEW QUESTION # 147
......

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