2026 Latest CIPP-US DUMPS Q&As with Explanations Verified & Correct Answers
CIPP-US dumps Exam Material with 228 Questions
NEW QUESTION # 87
All of the following organizations are specified as covered entities under the Health Insurance Portability and Accountability Act (HIPAA) EXCEPT?
- A. Healthcare information clearinghouses
- B. Pharmaceutical companies
- C. Healthcare providers
- D. Health plans
Answer: C
Explanation:
* The Privacy Act of 1974 is a federal law that regulates the collection, use, and disclosure of personal information by federal agencies.
* The Privacy Act of 1974 applies to records that are maintained in a system of records, which is defined as a group of records under the control of an agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifier assigned to the individual.
* The Privacy Act of 1974 grants individuals the right to access and amend their records, and requires agencies to provide notice of their systems of records, establish safeguards for the protection of the records, and limit the disclosure of the records to certain authorized purposes.
* The Privacy Act of 1974 also establishes civil and criminal penalties for violations of the law, such as unauthorized disclosure, failure to publish a notice, or refusal to grant access or amendment.
* The Privacy Act of 1974 does NOT require agencies to obtain the consent of the individual before collecting their personal information. However, the Privacy Act of 1974 does require agencies to inform the individual of the authority for the collection, the purpose and use of the collection, and the effects of not providing the information.
References: : [Overview of the Privacy Act of 1974]
NEW QUESTION # 88
What are banks required to do under the Gramm-Leach-Bliley Act (GLBA)?
- A. Conduct annual consumer surveys regarding satisfaction with user preferences
- B. Offer an Opt-Out before transferring PI to an unaffiliated third party for the latter's own use
- C. Provide consumers with the opportunity to opt out of receiving telemarketing phone calls
- D. Process requests for changes to user preferences within a designated time frame
Answer: B
Explanation:
Explanation/Reference: https://www.investopedia.com/terms/g/glba.asp
NEW QUESTION # 89
SCENARIO
Please use the following to answer the next QUESTION
Noah is trying to get a new job involving the management of money. He has a poor personal credit rating, but he has made better financial decisions in the past two years.
One potential employer, Arnie's Emporium, recently called to tell Noah he did not get a position. As part of the application process, Noah signed a consent form allowing the employer to request his credit report from a consumer reporting agency (CRA). Noah thinks that the report hurt his chances, but believes that he may not ever know whether it was his credit that cost him the job. However, Noah is somewhat relieved that he was not offered this particular position. He noticed that the store where he interviewed was extremely disorganized. He imagines that his credit report could still be sitting in the office, unsecured.
Two days ago, Noah got another interview for a position at Sam's Market. The interviewer told Noah that his credit report would be a factor in the hiring decision. Noah was surprised because he had not seen anything on paper about this when he applied.
Regardless, the effect of Noah's credit on his employability troubles him, especially since he has tried so hard to improve it. Noah made his worst financial decisions fifteen years ago, and they led to bankruptcy. These were decisions he made as a young man, and most of his debt at the time consisted of student loans, credit card debt, and a few unpaid bills - all of which Noah is still working to pay off. He often laments that decisions he made fifteen years ago are still affecting him today.
In addition, Noah feels that an experience investing with a large bank may have contributed to his financial troubles. In 2007, in an effort to earn money to help pay off his debt, Noah talked to a customer service representative at a large investment company who urged him to purchase stocks. Without understanding the risks, Noah agreed. Unfortunately, Noah lost a great deal of money.
After losing the money, Noah was a customer of another financial institution that suffered a large security breach. Noah was one of millions of customers whose personal information was compromised. He wonders if he may have been a victim of identity theft and whether this may have negatively affected his credit.
Noah hopes that he will soon be able to put these challenges behind him, build excellent credit, and find the perfect job.
Based on the scenario, which legislation should ease Noah's worry about his credit report as a result of applying at Arnie's Emporium?
- A. The Safeguards Rule under the Gramm-Leach-Bliley Act (GLBA).
- B. The Red Flags Rule under the Fair and Accurate Credit Transactions Act (FACTA).
- C. The Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA).
- D. The Privacy Rule under the Gramm-Leach-Bliley Act (GLBA).
Answer: C
Explanation:
The Department of Commerce (DOC) plays a role in privacy policy by promoting the development and adoption of voluntary codes of conduct, standards, and best practices for the private sector, as well as facilitating cross-border data transfers through mechanisms such as the EU-U.S. Privacy Shield and the APEC Cross-Border Privacy Rules. However, the DOC does not have regulatory authority to enforce privacy laws or impose sanctions for privacy violations. The other agencies listed have some degree of regulatory authority over privacy issues within their respective domains. For example, the Office of the Comptroller of the Currency (OCC) supervises national banks and federal savings associations and enforces the GLBA privacy and security rules for these institutions. The Federal Communications Commission (FCC) regulates interstate and international communications and enforces the privacy and security rules for telecommunications carriers, broadband providers, and voice over internet protocol (VoIP) services. The Department of Transportation (DOT) oversees the transportation sector and enforces the privacy and security rules for airlines, travel agents, and other covered entities under the Aviation and Transportation Security Act (ATSA). References:
* IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1: Introduction to the
U.S. Privacy Environment, Section 1.3: Federal Agencies with a Role in Privacy, p. 18-19
* IAPP CIPP/US Body of Knowledge, Domain I: Introduction to the U.S. Privacy Environment, Objective I.B: Identify the major federal agencies with a role in privacy, Subobjective I.B.4: Identify the role of the Department of Commerce, p. 7
* IAPP CIPP/US Exam Blueprint, Domain I: Introduction to the U.S. Privacy Environment, Objective I.
B: Identify the major federal agencies with a role in privacy, Subobjective I.B.4: Identify the role of the Department of Commerce, p. 3
NEW QUESTION # 90
SCENARIO
Please use the following to answer the next QUESTION:
You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo's business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data.
However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth's security measures.
A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals - ones that exposed the PHI of public figures including celebrities and politicians.
During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual's ePHI, and that he has suffered substantial harm as aresult of the exposed data. The patient's attorney has submitted a discovery request for the ePHI exposed in the breach.
Of the safeguards required by the HIPAA Security Rule, which of the following is NOT at issue due to HealthCo's actions?
- A. Technical Safeguards
- B. Administrative Safeguards
- C. Security Safeguards
- D. Physical Safeguards
Answer: C
Explanation:
The HIPAA Security Rule requires covered entities and their business associates to implement three types of safeguards to protect the confidentiality, integrity, and availability of electronic protected health information (ePHI): administrative, physical, and technical1. Security safeguards is not a separate category of safeguards, but rather a general term that encompasses all three types. Therefore, it is not a correct answer to the question.
* Administrative safeguards are the policies and procedures that govern the conduct of the workforce and the security measures put in place to protect ePHI. They include risk analysis and management, training, contingency planning, incident response, and evaluation12.
* Physical safeguards are the locks, doors, cameras, and other physical measures that prevent unauthorized access to ePHI. They include workstation and device security, locks and keys, and disposal of media12.
* Technical safeguards are the software and hardware tools that protect ePHI from unauthorized access, alteration, or destruction. They include access control, encryption, audit controls, integrity controls, and transmission security12.
In the scenario, HealthCo's actions have potentially violated all three types of safeguards. For example:
* HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth's security measures. This could be a breach of the administrative safeguard of risk analysis and management12.
* HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. This could be a breach of the technical safeguard of encryption12.
* HealthCo provides its investigative report of the breach and a copy of the PHI of the individuals affected to law enforcement. This could be a breach of the physical safeguard of disposal of media, if HealthCo did not ensure that the media was properly erased or destroyed after the transfer12.
References: 1: Summary of the HIPAA Security Rule, HHS.gov. 2: What is the HIPAA Security Rule?
Safeguards ... - Secureframe, Secureframe.com.
NEW QUESTION # 91
What is the main purpose of requiring marketers to use the Wireless Domain Registry?
- A. To ensure their emails are sent to actual wireless subscribers
- B. To acquire authorization to send emails to mobile devices
- C. To prevent unauthorized emails to mobile devices
- D. To access a current list of wireless domain names
Answer: C
Explanation:
The Wireless Domain Registry is a list of domain names that are used to transmit electronic messages to wireless devices, such as cell phones and pagers. The purpose of the registry is to protect wireless consumers from unwanted commercial electronic mail messages, by identifying the domain names for those who send such messages. Marketers are required to use the registry to avoid sending unsolicited emails to wireless devices, which may incur costs or inconvenience for the recipients. Sending such emails without the express prior authorization of the recipient is a violation of the CAN-SPAM Act of
2003. References: https://www.fcc.gov/cgb/policy/domain-name-input
https://www.prnewswire.com/in/news-releases/the-wireless-registry-launches-worlds-first-global-registry-f
NEW QUESTION # 92
Chanel Hair Studio is a busy high-end hair salon. In an effort to maximize efficiency of its operations and reduce wait times for appointments, Chanel decides to implement artificial intelligence software that will use client profiles and history to predict which clients will likely be late for their appointments. Information used to create the client profile included appointment history, distance from the salon, and any references to being tardy pulled from the client's social media accounts. If a client is predicted to be late, their appointment will be cancelled within 5 minutes.
Based on the details, what is the biggest potential privacy concern related to Chanel's use of this new software?
- A. Using client profile information for any purpose other than setting up an appointment.
- B. Scanning a client's social media accounts to use in a client profile without notice to the client.
- C. Calculating client profile address distance from the salon to determine location from salon to help predict if the client will be late.
- D. Assessing client tardiness history with the salon for predictive purposes.
Answer: B
Explanation:
The biggest potential privacy concern related to Chanel's use of this new software is scanning a client's social media accounts to use in a client profile without notice to the client. This could violate the client's reasonable expectation of privacy and consent, as well as the privacy policies of the social media platforms. The client may not be aware that their social media posts are being used for this purpose, and may not have given their permission or opt-in consent for such data collection and processing. This could also expose the client to potential discrimination or harm based on their social media activity, such as losing their appointment or being charged a cancellation fee. Furthermore, this practice could conflict with the Fair Information Practice Principles (FIPPs), such as transparency, purpose specification, and data minimization12. References:
* CIPP/US Practice Questions (Sample Questions), Question 149, Answer A, Explanation A.
* IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1, Section 1.1, p. 9-10.
NEW QUESTION # 93
Based on the 2012 Federal Trade Commission report "Protecting Consumer Privacy in an Era of Rapid Change", which of the following directives is most important for businesses?
- A. Integrating privacy protections during product development.
- B. Announcing the tracking of online behavior for advertising purposes.
- C. Mitigating harm to consumers after a security breach.
- D. Allowing consumers to opt in before collecting any data.
Answer: A
Explanation:
According to the FTC report, the most important directive for businesses is to adopt a "privacy by design" approach, which means integrating privacy protections throughout the entire product lifecycle, from initial design to disposal. This includes implementing reasonable security measures, collecting only the data needed for a specific purpose, retaining data only as long as necessary, and safely disposing of data that is no longer needed. The FTC report also recommends that businesses provide clear and transparent privacy notices, offer consumers meaningful choices about how their data is used, and increase their accountability for data practices.
NEW QUESTION # 94
Which of the following scenarios would NOT be covered under HIPAA?
- A. Medical books purchased through Amazon
- B. Doctor visit for annual physical
- C. Billing codes, patient name, and insurance identification sent to an insurance company for payment
- D. Chemotherapy related to cancer treatment in a medical facility
Answer: A
Explanation:
It is important to understand that HIPAA applies to these covered entities, but not to other healthcare providers and services. Individuals surfing the web or purchasing books about healthcare are not covered by HIPAA.
NEW QUESTION # 95
General health records data for private schools who accept no federal funding are subject to:
- A. PPRA
- B. HIPAA
- C. FERPA
- D. No Child Left Behind
Answer: B
Explanation:
If a school is not subject to FERPA, such as private schools, then the medical records of this school (if a covered entity) are subject to the HIPAA Privacy Rule.
NEW QUESTION # 96
SCENARIO
Please use the following to answer the next question:
Larry has become increasingly dissatisfied with his telemarketing position at SunriseLynx, and particularly with his supervisor, Evan. Just last week, he overheard Evan mocking the state's Do Not Call list, as well as the people on it. "If they were really serious about not being bothered," Evan said, "They'd be on the national DNC list. That's the only one we're required to follow. At SunriseLynx, we call until they ask us not to." Bizarrely, Evan requires telemarketers to keep records of recipients who ask them to call "another time." This, to Larry, is a clear indication that they don't want to be called at all. Evan doesn't see it that way.
Larry believes that Evan's arrogance also affects the way he treats employees. The U.S.
Constitution protects American workers, and Larry believes that the rights of those at SunriseLynx are violated regularly. At first Evan seemed friendly, even connecting with employees on social media. However, following Evan's political posts, it became clear to Larry that employees with similar affiliations were the only ones offered promotions.
Further, Larry occasionally has packages containing personal-use items mailed to work. Several times, these have come to him already opened, even though this name was clearly marked. Larry thinks the opening of personal mail is common at SunriseLynx, and that Fourth Amendment rights are being trampled under Evan's leadership.
Larry has also been dismayed to overhear discussions about his coworker, Sadie. Telemarketing calls are regularly recorded for quality assurance, and although Sadie is always professional during business, her personal conversations sometimes contain sexual comments. This too is something Larry has heard Evan laughing about. When he mentioned this to a coworker, his concern was met with a shrug. It was the coworker's belief that employees agreed to be monitored when they signed on. Although personal devices are left alone, phone calls, emails and browsing histories are all subject to surveillance. In fact, Larry knows of one case in which an employee was fired after an undercover investigation by an outside firm turned up evidence of misconduct. Although the employee may have stolen from the company, Evan could have simply contacted the authorities when he first suspected something amiss.
Larry wants to take action, but is uncertain how to proceed.
Based on the way he uses social media, Evan is susceptible to a lawsuit based on?
- A. Discrimination
- B. Intrusion upon seclusion
- C. Publicity given to private life
- D. Defamation
Answer: A
Explanation:
Discrimination is the unfair or prejudicial treatment of people based on certain characteristics, such as race, gender, age, religion, or political affiliation. Discrimination can occur in various contexts, such as employment, education, housing, or public accommodations. Discrimination can violate federal, state, or local laws that prohibit discrimination on the basis of protected categories. In the scenario, Evan is susceptible to a lawsuit based on discrimination because he uses social media to favor employees who share his political views and deny promotions to those who do not. This could constitute political discrimination, which is prohibited by some state and local laws, such as the District of Columbia Human Rights Act and the New York City Human Rights Law. Additionally, Evan's use of social media could reveal other protected characteristics of his employees, such as their race, gender, age, religion, or sexual orientation, and expose him to claims of discrimination based on those grounds as well. For example, if Evan posts derogatory comments about a certain race or religion, and then denies a promotion to an employee of that race or religion, that employee could sue Evan for discrimination under federal laws, such as Title VII of the Civil Rights Act of 1964 or the Civil Rights Act of 199.
NEW QUESTION # 97
According to the Family Educational Rights and Privacy Act (FERPA). when can a school disclose records without a student's consent?
- A. If the disclosure is made to practitioners who are involved in a student's hearth care.
- B. If the disclosure would not reveal a student's student identification number
- C. If the disclosure is for the purpose of providing transcripts to a school where a student intends to enroll.
- D. If the disclosure Is not to be conducted through email to the third party
Answer: C
Explanation:
The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of student education records. FERPA generally requires that schools obtain written consent from students (or their parents if the student is a minor) before disclosing personally identifiable information from education records. However, FERPA allows specific exceptions where disclosures can be made without consent.
One of these exceptions is when a school discloses education records to another school where the student seeks or intends to enroll. This allows educational institutions to share information for legitimate educational purposes, such as transferring transcripts between schools when a student moves or applies for enrollment elsewhere.
NEW QUESTION # 98
Which action is prohibited under the Electronic Communications Privacy Act of 1986?
- A. Monitoring all employee telephone calls
- B. Intercepting electronic communications and unauthorized access to stored communications
- C. Monitoring employee telephone calls of a personal nature
- D. Accessing stored communications with the consent of the sender or recipient of the message
Answer: B
Explanation:
The Electronic Communications Privacy Act of 1986 (ECPA) is a federal law that protects the privacy of wire, oral, and electronic communications while they are being made, in transit, or stored on computers. The ECPA has three titles: Title I prohibits the intentional interception, use, or disclosure of wire, oral, or electronic communications, except for certain exceptions, such as consent, provider protection, or law enforcement purposes. Title II, also known as the Stored Communications Act (SCA), prohibits the unauthorized access to or disclosure of stored wire or electronic communications, such as email, voicemail, or online messages, except for certain exceptions, such as consent, provider protection, or law enforcement purposes. Title III regulates the installation and use of pen register and trap and trace devices, which record the numbers dialed to or from a telephone line, but not the content of the communications. Therefore, the action that is prohibited under the ECPA is intercepting electronic communications and unauthorized access to stored communications, which are covered by Title I and Title II of the Act, respectively.
NEW QUESTION # 99
SCENARIO
Please use the following to answer the next question:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
What is the best reason for Cheryl to follow Janice's suggestion about classifying customer data?
- A. It will increase the security of customers' personal information (PI)
- B. It will help employees stay better organized
- C. It will help the company meet a federal mandate
- D. It will prevent the company from collecting too much personal information (PI)
Answer: A
Explanation:
Data classification systematically categorizes information based on sensitivity and importance to determine its level of confidentiality. This process helps apply appropriate security and compliance measures to ensure each category receives proper protection. This process also helps to identify which personal data is subject to specific GDPR requirements, such as obtaining explicit consent from data subjects, or notifying data subjects in the event of a data breach. By classifying data, Cheryl can also make more informed decisions about where to store the information on her computer system and the nature of controls that are required based on classification. This way, she can protect her customers' privacy while maintaining the highest level of service.
NEW QUESTION # 100
Who has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA)?
- A. The Federal Trade Commission
- B. The Consumer Financial Protection Bureau
- C. State Attorneys General
- D. The Department of Commerce
Answer: B
Explanation:
The Consumer Financial Protection Bureau (CFPB) has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA), as well as other consumer financial laws. The Dodd-Frank Act, enacted in 2010, transferred most of the rulemaking responsibilities added to the FCRA by the FACTA and the Credit CARD Act from the Federal Trade Commission (FTC) to the CFPB. However, the FTC retains its enforcement authority for the FCRA and the FACTA, along with other federal and state agencies1. The CFPB also shares rulemaking authority for some provisions of the FACTA with the FTC, such as the identity theft red flags and address discrepancy rules2. The Department of Commerce and the State Attorneys General do not have rulemaking authority for the FCRA or the FACTA. References: 1: FTC3, Fair Credit Reporting Act; 2: CFPB4, Fair Credit Reporting Act; 3: FTC; 4: CFPB.
NEW QUESTION # 101
Which of the following is commonly required for an entity to be subject to breach notification requirements under most state laws?
- A. The entity must have employees in the state
- B. The entity must be registered in the state
- C. The entity must be an information broker
- D. The entity must conduct business in the state
Answer: D
NEW QUESTION # 102
The CFO of a pharmaceutical company is duped by a phishing email and discloses many of the company's employee personnel files to an online predator. The files include employee contact information, job applications, performance reviews, discipline records, and job descriptions.
Which of the following state laws would be an affected employee's best recourse against the employer?
- A. The state personnel record review statute.
- B. The state data destruction statute.
- C. The state UDAP statute.
- D. The state social security number confidentiality statute.
Answer: C
Explanation:
The state UDAP statute, which stands for Unfair and Deceptive Acts and Practices, is a law that protects consumers from unfair or deceptive business practices. In this case, the employer's failure to protect the employee's personal information from a phishing attack could be considered an unfair or deceptive act or practice that harmed the employee. The employee could sue the employer under the state UDAP statute for damages, injunctive relief, or other remedies.
NEW QUESTION # 103
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 exercise control over how companies use their personal data.
- B. Consumers have a right to easily accessible information about privacy and security practices.
- C. Consumers have a right to correct personal data in a manner that is appropriate to the sensitivity.
- D. Consumers have a right to reasonable limits on the personal data that a company retains.
Answer: D
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.
NEW QUESTION # 104
SCENARIO
Please use the following to answer the next question;
Jane is a U.S. citizen and a senior software engineer at California-based Jones Labs, a major software supplier to the U.S. Department of Defense and other U.S. federal agencies Jane's manager, Patrick, is a French citizen who has been living in California for over a decade. Patrick has recently begun to suspect that Jane is an insider secretly transmitting trade secrets to foreign intelligence. Unbeknownst to Patrick, the FBI has already received a hint from anonymous whistleblower, and jointly with the National Secunty Agency is investigating Jane's possible implication in a sophisticated foreign espionage campaign Ever since the pandemic. Jane has been working from home. To complete her daily tasks she uses her corporate laptop, which after each togin conspicuously provides notice that the equipment belongs to Jones Labs and may be monitored according to the enacted privacy policy and employment handbook Jane also has a corporate mobile phone that she uses strictly for business, the terms of which are defined in her employment contract and elaborated upon in her employee handbook. Both the privacy policy and the employee handbook are revised annually by a reputable California law firm specializing in privacy law. Jane also has a personal iPhone that she uses for private purposes only.
Jones Labs has its primary data center in San Francisco, which is managed internally by Jones Labs engineers The secondary data center, managed by Amazon AWS. is physically located in the UK for disaster recovery purposes. Jones Labs' mobile devices backup is managed by a mid-sized mobile delense company located in Denver, which physically stores the data in Canada to reduce costs. Jones Labs MS Office documents are securely stored in a Microsoft Office 365 data When storing Jane's fingerprint for remote authentication. Jones Labs should consider legality issues under which of the following9
- A. The California loT Security Law (SB 327).
- B. The federal Genetic Information Nondiscrimination Act (GINA).
- C. The applicable state law such as Illinois BIPA
- D. The Privacy Rule of the HITECH Act.
Answer: C
Explanation:
When storing biometric data, such as fingerprints, organizations in the U.S. must comply with state-specific biometric privacy laws if they operate in states that regulate biometric information. The most prominent of these laws is the Illinois Biometric Information Privacy Act (BIPA), but similar laws also exist or are developing in other states, such as Texas and Washington.
Key Considerations for Storing Biometric Data:
* Illinois Biometric Information Privacy Act (BIPA):BIPA (740 ILCS 14) is a leading and highly influential state law regulating the collection, storage, and use of biometric information. It requires organizations to:
* Obtain informed, written consent before collecting biometric data.
* Establish a publicly available policy governing the retention and destruction of biometric data.
* Use a reasonable standard of care to protect biometric data from unauthorized access or use.
* Prohibit the sale or transfer of biometric data without consent.
* California and Biometric Data:While California's California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) provide general protections for personal information, including biometric data, they do not have the specific consent and handling requirements that BIPA does. Nevertheless, California residents have rights related to access, deletion, and the sale of biometric information.
Explanation of Options:
* A. The Privacy Rule of the HITECH Act:The HITECH Act applies to the protection of protected health information (PHI) under HIPAA. While the Privacy Rule regulates healthcare-related information, it does not apply to Jane's biometric data used for remote authentication unless it is tied to PHI. This scenario is unrelated to healthcare, so this answer is incorrect.
* B. The California IoT Security Law (SB 327):California's IoT Security Law primarily focuses on ensuring security requirements for connected devices. It does not regulate the collection or storage of biometric information. This is not relevant to the question.
* C. The applicable state law such as Illinois BIPA:This is correct. State biometric privacy laws, such as Illinois BIPA, explicitly govern the collection, storage, and use of biometric data like fingerprints.
Organizations like Jones Labs must ensure compliance with such laws, including obtaining consent and properly securing and destroying biometric information.
* D. The federal Genetic Information Nondiscrimination Act (GINA):GINA prohibits discrimination based on genetic information in employment and health insurance. However, it does not regulate the storage of biometric data like fingerprints. This is not applicable to this scenario.
Best Practices for Compliance:
Jones Labs should:
* Understand the applicable state biometric laws: If Jane resides in Illinois or other states with biometric laws, Jones Labs must comply with those specific legal requirements.
* Obtain informed consent: Ensure that employees like Jane sign a written consent form before storing their fingerprints for authentication.
* Secure biometric data: Use strong encryption and other security measures to protect the biometric information.
* Define retention and destruction policies: Clearly establish how long biometric data will be stored and how it will be destroyed after its purpose is fulfilled.
References from CIPP/US Materials:
* Illinois Biometric Information Privacy Act (BIPA): Sets the standard for biometric privacy regulations in the U.S.
* California Consumer Privacy Act (CCPA): Protects personal information but does not specifically regulate biometric data like fingerprints with the same rigor as BIPA.
* IAPP CIPP/US Certification Textbook: Discusses the emergence of state-specific biometric privacy laws and their applicability in different scenarios.
NEW QUESTION # 105
California's SB 1386 was the first law of its type in the United States to do what?
- A. Require encryption of sensitive information stored on servers that are Internet connected
- B. Require state attorney general enforcement of federal regulations against unfair and deceptive trade practices
- C. Require commercial entities to disclose a security data breach concerning personal information about the state's residents
- D. Require notification of non-California residents of a breach that occurred in California
Answer: C
Explanation:
California's SB 1386, also known as the California Security Breach Information Act, was enacted in 2002 and became effective in 2003. It was the first law of its kind in the United States to require commercial entities that own or license personal information of California residents to notify them in the event of a security breach that compromises their unencrypted data. The law aims to protect the privacy and security of personal information and to enable individuals to take preventive measures against identity theft and fraud. The law applies to any business or person that conducts business in California and that owns or licenses computerized data that includes personal information, as defined by the law. Personal information includes an individual's first name or first initial and last name in combination with any one or more of the following data elements: Social Security number, driver's license number or California identification card number, account number, credit or debit card number, in combination with any required security code, access code, or password that would permit access to an individual's financial account, or medical information or health insurance information. The law does not apply to encrypted information, publicly available information, or information that is lawfully obtained from federal, state, or local government records. The law requires the disclosure of a breach of the security of the system to any resident of California whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. The disclosure must be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement or any measures necessary to determine the scope of the breach and restore the reasonable integrity of the data system. The disclosure may be made by written notice, electronic notice, or substitute notice, as specified by the law. The law also requires any person or business that maintains computerized data that includes personal information that the person or business does not own to notify the owner or licensee of the information of any breach of the security of the data immediately following discovery, if the personal information was, or is reasonably believed to have been, acquired by an unauthorized person. The law also authorizes a civil action for damages by a customer injured by a violation of the law and provides that the rights and remedies available under the law are cumulative to each other and to any other rights and remedies available under law. References:
* California Senate Bill 1386 (2002)
* California SB 1386: For the Love of Privacy
* What Is the California Security Breach Information Act?
* California Raises the Bar on Data Security and Privacy
NEW QUESTION # 106
Which of the following types of information would an organization generally NOT be required to disclose to law enforcement?
- A. Information about workspace injuries under OSHA requirements
- B. Personal health information under the HIPAA Privacy Rule
- C. Money laundering information under the Bank Secrecy Act of 1970
- D. Information about medication errors under the Food, Drug and Cosmetic Act
Answer: B
Explanation:
These are "permissive" disclosures. The covered entity or business associate may refuse. https://www.eff.org/issues/law-enforcement-
NEW QUESTION # 107
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IAPP CIPP-US certification exam is an essential certification program for privacy professionals who want to advance their careers and stay up-to-date with the latest privacy laws and regulations in the United States. CIPP-US exam is challenging, but the rewards are well worth it, as it provides privacy professionals with the knowledge and expertise they need to navigate the complex world of privacy laws and regulations. With the IAPP CIPP-US certification, privacy professionals can demonstrate their commitment to privacy and their dedication to staying current with the latest trends and developments in the field.
IAPP CIPP-US (Certified Information Privacy Professional/United States (CIPP/US)) Exam is designed to test the knowledge and skills of professionals who work in the field of data privacy. CIPP-US exam covers a wide range of topics related to privacy laws and regulations in the United States, including the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and the Health Insurance Portability and Accountability Act (HIPAA).
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