CIPP-E Dumps PDF 2026 Program Your Preparation EXAM SUCCESS [Q18-Q35]

CIPP-E Dumps PDF 2026 Program Your Preparation EXAM SUCCESS

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NEW QUESTION # 18
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.
Ben's collection of additional data from customers created several potential issues for the company, which would most likely require what?

• A. Hiring a data protection officer.
• B. New corporate governance and code of conduct.
• C. A comprehensive data inventory.
• D. A data protection impact assessment.

Answer: B

NEW QUESTION # 19
SCENARIO
Please use the following to answer the next question:
Liem, an online retailer known for its environmentally friendly shoes, has recently expanded its presence in Europe. Anxious to achieve market dominance, Liem teamed up with another eco friendly company, EcoMick, which sells accessories like belts and bags. Together the companies drew up a series of marketing campaigns designed to highlight the environmental and economic benefits of their products. After months of planning, Liem and EcoMick entered into a data sharing agreement to use the same marketing database, MarketIQ, to send the campaigns to their respective contacts.
Liem and EcoMick also entered into a data processing agreement with MarketIQ, the terms of which included processing personal data only upon Liem and EcoMick's instructions, and making available to them all information necessary to demonstrate compliance with GDPR obligations.
Liem and EcoMick then procured the services of a company called JaphSoft, a marketing optimization firm that uses machine learning to help companies run successful campaigns. Clients provide JaphSoft with the personal data of individuals they would like to be targeted in each campaign. To ensure protection of its clients' data, JaphSoft implements the technical and organizational measures it deems appropriate. JaphSoft works to continually improve its machine learning models by analyzing the data it receives from its clients to determine the most successful components of a successful campaign. JaphSoft then uses such models in providing services to its client-base. Since the models improve only over a period of time as more information is collected, JaphSoft does not have a deletion process for the data it receives from clients. However, to ensure compliance with data privacy rules, JaphSoft pseudonymizes the personal data by removing identifying information from the contact information. JaphSoft's engineers, however, maintain all contact information in the same database as the identifying information.
Under its agreement with Liem and EcoMick, JaphSoft received access to MarketIQ, which included contact information as well as prior purchase history for such contacts, to create campaigns that would result in the most views of the two companies' websites. A prior Liem customer, Ms. Iman, received a marketing campaign from JaphSoft regarding Liem's as well as EcoMick's latest products. While Ms. Iman recalls checking a box to receive information in the future regarding Liem's products, she has never shopped EcoMick, nor provided her personal data to that company.
JaphSoft's use of pseudonymization is NOT in compliance with the CDPR because?

• A. JaphSoft failed to first anonymize the personal data.
• B. JaphSoft failed to keep personally identifiable information in a separate database.
• C. JaphSoft pseudonymized all the data instead of deleting what it no longer needed.
• D. JaphSoft was in possession of information that could be used to identify data subjects.

Answer: C

NEW QUESTION # 20
The GDPR specifies fines that may be levied against data controllers for certain infringements. Which of the following infringements would be subject to the less severe administrative fine of up to 10 million euros (or in the case of an undertaking, up to 2% of the total worldwide annual turnover of the preceding financial year)?

• A. Failure to demonstrate that consent was given by the data subject to the processing of their personal data where it is used as the basis for processing.
• B. Failure to implement technical and organizational measures to ensure data protection is enshrined by design and default.
• C. Failure to process personal information in a manner compatible with its original purpose.
• D. Failure to provide the means for a data subject to rectify inaccuracies in personal data.

Answer: B

Explanation:
According to Article 83 of the GDPR, the less severe administrative fines of up to 10 million euros or 2% of the annual worldwide turnover apply to infringements of the articles governing controllers and processors, certification bodies, and monitoring bodies. These include Articles 8, 11, 25-39, 42, and 43. Among the answer choices, only option B falls under this category, as Article 25 requires controllers to implement data protection by design and by default. Option A is related to Article 7, which governs the conditions for consent. Option C is related to Article 5, which sets out the principles for processing personal data. Option D is related to Article 16, which grants the right to rectification to data subjects. These articles are subject to the more severe administrative fines of up to 20 million euros or 4% of the annual worldwide turnover. References:
* GDPR Article 83
* GDPR Article 25
* GDPR Article 7
* GDPR Article 5
* GDPR Article 16

NEW QUESTION # 21
SCENARIO
Please use the following to answer the next question:
Building Block Inc. is a multinational company, headquartered in Chicago with offices throughout the United States, Asia, and Europe (including Germany, Italy, France and Portugal). Last year the company was the victim of a phishing attack that resulted in a significant data breach. The executive board, in coordination with the general manager, their Privacy Office and the Information Security team, resolved to adopt additional security measures. These included training awareness programs, a cybersecurity audit, and use of a new software tool called SecurityScan, which scans employees' computers to see if they have software that is no longer being supported by a vendor and therefore not getting security updates. However, this software also provides other features, including the monitoring of employees' computers.
Since these measures would potentially impact employees, Building Block's Privacy Office decided to issue a general notice to all employees indicating that the company will implement a series of initiatives to enhance information security and prevent future data breaches.
After the implementation of these measures, server performance decreased. The general manager instructed the Security team on how to use SecurityScan to monitor employees' computers activity and their location.
During these activities, the Information Security team discovered that one employee from Italy was daily connecting to a video library of movies, and another one from Germany worked remotely without authorization. The Security team reported these incidents to the Privacy Office and the general manager. In their report, the team concluded that the employee from Italy was the reason why the server performance decreased.
Due to the seriousness of these infringements, the company decided to apply disciplinary measures to both employees, since the security and privacy policy of the company prohibited employees from installing software on the company's computers, and from working remotely without authorization.
In addition to notifying employees about the purpose of the monitoring, the potential uses of their data and their privacy rights, what information should Building Block have provided them before implementing the security measures?

• A. Information about how providing consent could affect them as employees.
• B. Information about who employees should contact with any queries.
• C. Information about what is specified in the employment contract.
• D. Information about how the measures are in the best interests of the company.

Answer: B

Explanation:
According to the GDPR, when personal data is collected from the data subject, the controller must provide the data subject with certain information, such as the identity and contact details of the controller, the contact details of the data protection officer, the purposes and legal basis of the processing, the recipients or categories of recipients of the personal data, the data subject's rights, and any other information necessary to ensure fair and transparent processing1. This information must be provided in a concise, transparent, intelligible and easily accessible form, using clear and plain language2. Therefore, Building Block should have provided its employees with information about who they can contact with any queries regarding the monitoring, such as the data protection officer or the Privacy Office, as part of the information notice before implementing the security measures. This would enable the employees to exercise their rights, such as the right to access, rectify, erase, restrict or object to the processing of their personal data, or the right to lodge a complaint with a supervisory authority3. References: 1 Art. 13 GDPR - Information to be provided where personal data are collected from the data subject - General Data Protection Regulation (GDPR)2 Art. 12 GDPR - Transparent information, communication and modalities for the exercise of the rights of the data subject - General Data Protection Regulation (GDPR)3 Art. 15-22 GDPR - Rights of the data subject - General Data Protection Regulation (GDPR).

NEW QUESTION # 22
Which change was introduced by the 2009 amendments to the e-Privacy Directive 2002/58/EC?

• A. A voluntary notification for personal data breaches applicable to all data controllers.
• B. A voluntary notification for personal data breaches applicable to electronic communication providers.
• C. A mandatory notification for personal data breaches applicable to electronic communication providers.
• D. A mandatory notification for personal data breaches applicable to all data controllers.

Answer: C

Explanation:
The e-Privacy Directive 2002/58/EC, also known as the Directive on privacy and electronic communications, is a specific directive that complements and particularises the GDPR for the electronic communications sector. It was amended in 2009 by the Directive 2009/136/EC, which introduced several changes to enhance the protection of personal data and privacy in the electronic communications sector. One of these changes was the introduction of a mandatory notification for personal data breaches applicable to providers of publicly available electronic communications services, such as telecom providers and internet service providers.
According to Article 4 of the amended e-Privacy Directive, these providers must notify the competent national authority of any breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, personal data transmitted, stored or otherwise processed in connection with the provision of a publicly available electronic communications service in the Community.
The notification must be made without undue delay and, where feasible, not later than 24 hours after the provider has become aware of the breach. The notification must include information such as the nature and content of the personal data concerned, the circumstances and consequences of the breach, and the measures taken or proposed by the provider to address the breach. The provider must also notify the affected data subjects of the breach, unless the provider has demonstrated to the satisfaction of the competent authority that it has implemented appropriate technological protection measures that render the data unintelligible to any person who is not authorised to access it. The notification to the data subjects must describe the nature of the breach and the contact points where more information can be obtained, and must recommend measures to mitigate the possible adverse effects of the breach. The purpose of this mandatory notification is to ensure that the authorities and the data subjects are informed of the risks and the remedies related to the breach, and to encourage the providers to improve their security measures and prevent further breaches. References: e- Privacy Directive, Changes to e-Privacy Directive Approved by European Parliament, Article 2 Amendments to Directive 2002/58/EC (Directive on privacy and electronic communications), Personal data breaches Reference: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32009L0136

NEW QUESTION # 23
To provide evidence of GDPR compliance, a company performs an internal audit. As a result, it finds a data base, password-protected, listing all the social network followers of the client.
Regarding the domain of the controller-processor relationships, how is this situation considered?

• A. Compliant with the storage limitation principle, so long as the internal auditor permanently deletes the data base.
• B. Compliant with the security principle, because the data base is password-protected.
• C. Non-compliant, because the storage of the data exceeds the tasks contractually authorized by the controller.
• D. Not applicable, because the data base is password protected, and therefore is not at risk of identifying any data subject.

Answer: C

Explanation:
The GDPR requires that the processor only processes personal data on behalf of the controller and according to the controller's instructions12. The agreement between the controller and the processor must include provisions that ensure that the processor does not process personal data for any other purposes or in a manner that is inconsistent with the controller's instructions34. Therefore, if the processor stores personal data that is not necessary for the performance of the contract with the controller, such as the social network followers of the client, this is a breach of the GDPR and the processor may be fined2. The fact that the data base is password-protected does not affect the applicability of the GDPR or the security principle, as the data is still personal data that can identify data subjects. The storage limitation principle also requires that personal data be kept for no longer than is necessary for the purposes for which the personal data are processed, so deleting the data base after the audit does not make the situation compliant. References: 1: Article 28 of the GDPR 2:
Guidelines 07/2020 on the concepts of controller and processor in the GDPR 3: Understanding Controller-to- Processor Agreements - GDPR Advisor 4: New Guidelines on Data Controllers and Processors: Time to Review Data Processing Agreements : Article 4 of the GDPR : Article 5 of the GDPR

NEW QUESTION # 24
If a company is planning to use closed-circuit television (CCTV) on its premises and is concerned with GDPR compliance, it should first do all of the following EXCEPT?

• A. Perform a data protection impact assessment (DPIA).
• B. Ensure that safeguards are in place to prevent unauthorized access to the footage.
• C. Notify the appropriate data protection authority.
• D. Create an information retention policy for those who operate the system.

Answer: C

Explanation:
Under the GDPR, using CCTV on business premises involves the processing of personal data, which requires compliance with the data protection principles and obligations. However, notifying the appropriate data protection authority (DPA) is not one of the steps that a company should take before using CCTV, unless the DPA has specifically requested it or the CCTV involves high-risk processing that requires prior consultation. The other steps are necessary to ensure GDPR compliance, as explained below:
Performing a data protection impact assessment (DPIA) is a mandatory requirement for any type of processing that is likely to result in a high risk to the rights and freedoms of individuals, such as large-scale or systematic monitoring of public areas. A DPIA is a process that helps identify and mitigate the potential privacy risks of using CCTV, and document the measures taken to address them. A DPIA should include a description of the processing, its purpose and necessity, its risks and benefits, the safeguards and security measures, and the consultation with stakeholders. A DPIA should be carried out before the CCTV system is installed or upgraded, and reviewed regularly or whenever there is a significant change in the processing.
Creating an information retention policy for those who operate the system is a good practice to ensure that the personal data collected by CCTV is not kept longer than necessary for the purpose for which it was collected, and that it is securely deleted or anonymised when no longer needed. The retention period should be determined by the specific purpose and context of using CCTV, and take into account any legal or contractual obligations, as well as the expectations and rights of the data subjects. The retention policy should also specify who is responsible for managing and deleting the CCTV footage, and how the deletion process is verified and documented.
Ensuring that safeguards are in place to prevent unauthorized access to the footage is an essential requirement to comply with the GDPR principle of integrity and confidentiality, which states that personal data must be processed in a manner that ensures appropriate security of the data, including protection against unauthorized or unlawful processing and accidental loss, destruction or damage. The safeguards may include technical and organisational measures, such as encryption, access control, logging, audit, training, policies and procedures, that aim to protect the CCTV footage from unauthorized or unlawful access, disclosure, alteration, or destruction, both during transmission and storage. Reference: GDPR Article 35, GDPR Article 36, GDPR Article 5, CCTV and video surveillance | ICO, 5 Step Guide to Check if Your CCTV is GDPR Compliant

NEW QUESTION # 25
Which sentence BEST summarizes the concepts of "fairness," "lawfulness" and "transparency", as expressly required by Article 5 of the GDPR?

• A. Fairness refers to the collection of data from diverse subjects; lawfulness refers to the need for legal rules to be uniform; transparency refers to giving individuals access to their data.
• B. Fairness refers to limiting the amount of data collected from individuals; lawfulness refers to the approval of company guidelines by the state; transparency solely relates to communication of key information before collecting data.
• C. Fairness and transparency refer to the communication of key information before collecting data; lawfulness refers to compliance with government regulations.
• D. Fairness refers to the security of personal data; lawfulness and transparency refers to the analysis of ordinances to ensure they are uniformly enforced.

Answer: C

Explanation:
According to the UK GDPR, the processing of personal data must be lawful, fair and transparent1. Lawfulness means that there must be a valid legal basis for processing personal data, such as consent, contract, legal obligation, vital interests, public task or legitimate interests1. Fairness means that the processing must not be detrimental, unexpected or misleading to the individuals concerned1. Transparency means that the individuals must be informed about how their data is used, who it is shared with, what rights they have and how they can exercise them1. Therefore, the sentence that best summarizes these concepts is option A, which states that fairness and transparency refer to the communication of key information before collecting data; lawfulness refers to compliance with government regulations. References: 1 https://ico.org.uk
/for-organisations-2/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/principles
/lawfulness-fairness-and-transparency/

NEW QUESTION # 26
Under what circumstances might the "soft opt-in" rule apply in relation to direct marketing?

• A. Where an individual's details have been obtained from a bought-in marketing list.
• B. When an individual has not consented to the marketing.
• C. Where an individual is given the ability to unsubscribe from marketing emails sent to him.
• D. When an individual's details are obtained from their inquiries about buying a product.

Answer: D

Explanation:
The "soft opt-in" rule is an exception to the general requirement of obtaining consent before sending electronic mail marketing to individuals. It applies when the following conditions are met12:
the sender has obtained the contact details of the recipient in the context of the sale or negotiations for the sale of a product or service to that recipient; the sender only sends direct marketing relating to its own similar products or services; and the recipient has been given a simple opportunity to refuse or opt out of the marketing, both when the details were initially collected and in every subsequent message.
The option B matches these conditions, as it implies that the individual has shown an interest in buying a product from the sender, and that the sender can use the individual's details to send marketing about similar products, as long as the individual can easily opt out. The other options do not qualify for the "soft opt-in" rule, as they either involve no consent, no prior relationship, or no opt-out mechanism. Reference: Electronic mail marketing | ICO, Direct marketing rules and exceptions under the GDPR

NEW QUESTION # 27
Under Article 9 of the GDPR, which of the following categories of data is NOT expressly prohibited from data processing?

• A. Personal data revealing trade union membership.
• B. Personal data revealing genetic data.
• C. Personal data revealing ethnic origin.
• D. Personal data revealing financial data.

Answer: D

Explanation:
Article 9 of the GDPR prohibits the processing of special categories of personal data, which are data that reveal sensitive information about the data subject and may pose a high risk to their rights and freedoms. The GDPR defines 10 types of personal data as special categories, which are:
* personal data revealing racial or ethnic origin;
* personal data revealing political opinions;
* personal data revealing religious or philosophical beliefs;
* personal data revealing trade union membership;
* genetic data;
* biometric data (where used for identification purposes);
* data concerning health;
* data concerning a person's sex life; and
* data concerning a person's sexual orientation.
Among the answer choices, only option C is not one of these categories, as financial data is not considered to reveal any sensitive information about the data subject. However, financial data is still subject to the general principles and rules of the GDPR, such as lawfulness, fairness, transparency, accuracy, security, etc.
References:
* Special category data | ICO
* Art. 9 GDPR Processing of special categories of personal data
* Special Categories of Data - International Association of Privacy Professionals Reference: https://www.privacy-regulation.eu/en/article-9-processing-of-special-categories-of-personal-data- GDPR.htm#:~:text=Processing%20of%20personal%20data%20revealing,concerning%20a%20natural%
20person%27s%20sex

NEW QUESTION # 28
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

Explanation:
A data breach is broadly defined as any incident that leads to the unauthorized access, disclosure, alteration, or destruction of personal data. While options A and B might seem plausible at first glance, they focus on a narrow interpretation of a breach.
The key here is the loss of confidentiality and/or integrity. Even though no one has actively stolen the data, the bank can no longer guarantee the confidentiality of the information, nor can it ensure the integrity of the data since it cannot be accessed or modified securely. This constitutes a loss of control over the data and thus qualifies as a data breach.
Reference:
IAPP CIPP/E textbook, Chapter 5: Data Breach Notification (specifically, the definition of a personal data breach) GDPR Article 4(12) - Definition of a personal data breach

NEW QUESTION # 29
Which of the following would MOST likely trigger the extraterritorial effect of the GDPR, as specified by Article 3?

• A. Personal data of EU residents being processed by a non-EU business that targets EU customers.
• B. The behavior of suspected terrorists being monitored by EU law enforcement bodies.
• C. The behavior of EU citizens outside the EU being monitored by non-EU law enforcement bodies.
• D. Personal data of EU citizens being processed by a controller or processor based outside the EU.

Answer: D

Explanation:
According to Article 3(1) of the GDPR1, personal data shall be processed in any member state only on the basis of a decision taken at a Union level that is binding for that member state, unless it is derogated from by national law. This means that the GDPR applies to any processing of personal data within the EU, regardless of where the controller or processor is located, as long as it is based on a decision made at a Union level that is binding for that member state.
Therefore, option B would most likely trigger the extraterritorial effect of the GDPR, as it involves personal data of EU citizens being processed by a controller or processor based outside the EU, which may be subject to a decision made at a Union level that is binding for that member state.
Option A would not trigger the extraterritorial effect of the GDPR, as it involves monitoring suspected terrorists, which is not considered processing under Article 4(1) and (2) of the GDPR1. Monitoring may fall under other legal frameworks, such as national security or counter-terrorism laws.
Option C would not trigger the extraterritorial effect of the GDPR, as it involves monitoring EU citizens outside the EU by non-EU law enforcement bodies, which may not be subject to any decision made at a Union level that is binding for that member state.
Option D would not trigger the extraterritorial effect of the GDPR, as it involves processing personal data of EU residents by a non-EU business that targets EU customers, which may not be subject to any decision made at a Union level that is binding for that member state.
References: 1: Free CIPP/E Study Guide - International Association of Privacy Professionals.
Reference: https://hsfnotes.com/data/2019/12/02/edpb-adopts-final-guidelines-on-gdpr-extra-territoriality/

NEW QUESTION # 30
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.
Ben's collection of additional data from customers created several potential issues for the company, which would most likely require what?

• A. Hiring a data protection officer.
• B. New corporate governance and code of conduct.
• C. A comprehensive data inventory.
• D. A data protection impact assessment.

Answer: B

NEW QUESTION # 31
As per the GDPR, which legal basis would be the most appropriate for an online shop that wishes to process personal data for the purpose of fraud prevention?

• A. Protection of the interests of the data subjects.
• B. Legitimate interest.
• C. Performance of a contract.
• D. Consent.

Answer: B

Explanation:
TheGDPR lawful basesare set out inArticle 6 GDPR. Fraud prevention is not strictly necessary for the performance of a contract (B)(e.g., delivering goods) nor does it requireconsent (D), which would be impractical and invalid under imbalance of power concerns.Vital interests (A)apply only in life-and-death situations.
Instead, thelegitimate interest basis (C)is recognized as appropriate for preventing fraud and ensuring network/system security, provided such interests are balanced against the rights of data subjects.
#Reference:GDPR Article 6(1)(f); Recital 47 (fraud prevention as a legitimate interest); CIPP/E Textbook (3rd ed.), Chapter 7 "Lawful Processing Criteria".

NEW QUESTION # 32
Which sentence BEST summarizes the concepts of "fairness," "lawfulness" and "transparency", as expressly required by Article 5 of the GDPR?

• A. Fairness refers to the collection of data from diverse subjects; lawfulness refers to the need for legal rules to be uniform; transparency refers to giving individuals access to their data.
• B. Fairness refers to limiting the amount of data collected from individuals; lawfulness refers to the approval of company guidelines by the state; transparency solely relates to communication of key information before collecting data.
• C. Fairness and transparency refer to the communication of key information before collecting data; lawfulness refers to compliance with government regulations.
• D. Fairness refers to the security of personal data; lawfulness and transparency refers to the analysis of ordinances to ensure they are uniformly enforced.

Answer: C

NEW QUESTION # 33
SCENARIO
Please use the following to answer the next question:
ProStorage is a multinational cloud storage provider headquartered in the Netherlands. Its CEO. Ruth Brown, has developed a two-pronged strategy for growth: 1) expand ProStorage s global customer base and 2) increase ProStorage's sales force by efficiently onboarding effective teams. Enacting this strategy has recently been complicated by Ruth's health condition, which has limited her working hours, as well as her ability to travel to meet potential customers. ProStorage's Human Resources department and Ruth's Chief of Staff now work together to manage her schedule and ensure that she is able to make all her medical appointments The latter has become especially crucial after Ruth's last trip to India, where she suffered a medical emergency and was hospitalized m New Delhi Unable to reach Ruths family, the hospital reached out to ProStorage and was able to connect with her Chief of Staff, who in coordination with Mary, the head of HR. provided information to the doctors based on accommodate on requests Ruth made when she started a: ProStorage Why was Jackie correct in not completing a transfer impact assessment for HRYourWay?

• A. HRYourWay was ultimately not selected
• B. HRYourWay is not located in a third country.
• C. ProStorage will obtain consent for all transfers.
• D. ProStorage can rely on its Binding Corporate Rules

Answer: C

NEW QUESTION # 34
SCENARIO
Please use the following to answer the next question:
Gentle Hedgehog Inc. is a privately owned website design agency incorporated in Italy. The company has numerous remote workers in different EU countries. Recently, the management of Gentle Hedgehog noticed a decrease in productivity of their sales team, especially among remote workers. As a result, the company plans to implement a robust but privacy-friendly remote surveillance system to prevent absenteeism, reward top performers, and ensure the best quality of customer service when sales people are interacting with customers.
Gentle Hedgehog eventually hires Sauron Eye Inc., a Chinese vendor of employee surveillance software whose European headquarters is in Germany. Sauron Eye's software provides powerful remote-monitoring capabilities, including 24/7 access to computer cameras and microphones, screen captures, emails, website history, and keystrokes. Any device can be remotely monitored from a central server that is securely installed at Gentle Hedgehog headquarters. The monitoring is invisible by default; however, a so-called Transparent Mode, which regularly and conspicuously notifies all users about the monitoring and its precise scope, also exists. Additionally, the monitored employees are required to use a built-in verification technology involving facial recognition each time they log in.
All monitoring data, including the facial recognition data, is securely stored in Microsoft Azure cloud servers operated by Sauron Eye, which are physically located in France.
What monitoring may be lawfully performed within the scope of Gentle Hedgehog's business?

• A. Only video calls conducted during business hours and emails that do not contain a "private" or
  "personal" tag.
• B. Everything offered by Sauron Eye's software with the exception of camera and microphone monitoring.
• C. Everything offered by Sauron Eye's software, assuming employees provide daily consent to the monitoring.
• D. Only emails, website browsing history and camera for internal video calls that are expressly marked as monitored.

Answer: D

Explanation:
The General Data Protection Regulation (GDPR) does not prohibit surveillance of employees in the workplace. Still, it requires employers to follow special rules to ensure that the rights and freedoms of employees are protected when processing their personal data. The GDPR applies to any processing of personal data in the context of the activities of an establishment of a controller or a processor in the EU, regardless of whether the processing takes place in the EU or not. The GDPR also applies to the processing of personal data of data subjects who are in the EU by a controller or processor not established in the EU, where the processing activities are related to the offering of goods or services to data subjects in the EU or the monitoring of their behaviour as far as their behaviour takes place within the EU.
The GDPR requires that any processing of personal data must be lawful, fair and transparent, and based on one of the six legal grounds specified in the regulation. The most relevant legal grounds for employee surveillance are the legitimate interests of the employer, the performance of a contract with the employee, or the compliance with a legal obligation. The GDPR also requires that any processing of personal data must be limited to what is necessary for the purposes for which they are processed, and that the data subjects must be informed of the purposes and the legal basis of the processing, as well as their rights and the safeguards in place to protect their data.
The GDPR also imposes specific obligations and restrictions on the processing of special categories of personal data, such as biometric data, which reveal racial or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership, or which are processed for the purpose of uniquely identifying a natural person. The processing of such data is prohibited, unless one of the ten exceptions listed in the regulation applies. The most relevant exceptions for employee surveillance are the explicit consent of the data subject, the necessity for the purposes of carrying out the obligations and exercising specific rights of the controller or of the data subject in the field of employment and social security and social protection law, or the necessity for reasons of substantial public interest.
The GDPR also sets out the rules and requirements for the transfer of personal data to third countries or international organisations, which do not ensure an adequate level of data protection. The transfer of such data is only allowed if the controller or processor has provided appropriate safeguards, such as binding corporate rules, standard contractual clauses, codes of conduct or certification mechanisms, and if the data subjects have enforceable rights and effective legal remedies.
Based on the scenario, the only monitoring that may be lawfully performed within the scope of Gentle Hedgehog's business is the monitoring of emails, website browsing history and camera for internal video calls that are expressly marked as monitored. This option is the most consistent with the GDPR's principles and requirements, as it:
Is based on the legitimate interests of the employer to ensure the productivity, quality and security of the work performed by the employees, as well as the performance of a contract with the employees and the compliance with a legal obligation to prevent fraud and protect confidential information.
Is limited to what is necessary for the purposes of the monitoring, as it only covers the work-related activities and communications of the employees, and excludes the private or personal ones.
Is transparent to the employees, as it informs them of the monitoring and its precise scope, and gives them the opportunity to object or opt out of the monitoring.
Does not involve the processing of special categories of personal data, such as biometric data or data revealing political opinions or trade union membership, which are not necessary or proportionate for the purposes of the monitoring.
Does not involve the transfer of personal data to a third country, such as China, which does not provide an adequate level of data protection, and which may pose additional risks for the rights and freedoms of the employees.
The other options listed in the question are not lawful monitoring within the scope of Gentle Hedgehog's business, as they:
Are not based on a valid legal ground for the processing of personal data, as they either rely on the consent of the employees, which is not freely given, informed and specific, or on the legitimate interests of the employer, which are not balanced with the rights and freedoms of the employees.
Are not limited to what is necessary for the purposes of the monitoring, as they involve the collection and processing of excessive and irrelevant personal data, such as camera and microphone monitoring, screen captures, keystrokes, and facial recognition data, which go beyond the scope of the work performed by the employees, and intrude into their private or personal sphere.
Are not transparent to the employees, as they do not inform them of the monitoring and its precise scope, and do not give them the opportunity to object or opt out of the monitoring.
Involve the processing of special categories of personal data, such as biometric data or data revealing political opinions or trade union membership, which are not necessary or proportionate for the purposes of the monitoring, and which do not fall under any of the exceptions listed in the regulation.
Involve the transfer of personal data to a third country, such as China, which does not provide an adequate level of data protection, and which may pose additional risks for the rights and freedoms of the employees.
References:
GDPR, Articles 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 44, 45, 46, 47, 48, and
49.
EDPB Guidelines 3/2019 on processing of personal data through video devices, pages 5, 6, 7, 8, 9, 10, 11, 12,
13, and 14.
EDPB Guidelines 07/2020 on the concepts of controller and processor in the GDPR, pages 19, 20, 21, 22, 23,
24, 25, 26, 27, and 28.
EDPB Guidelines 4/2019 on Article 25 Data Protection by Design and by Default, pages 5, 6, 7, 8, 9, 10, 11,
12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, and 28.
EDPB Guidelines 2/2018 on derogations of Article 49 under Regulation 2016/679, pages 4, 5, 6, 7, 8, 9, 10,
11, and 12.
Data protection: GDPR and employee surveilance | Feature | Law Gazette, paragraphs 1, 2, 3, 4, 5, 6, 7, and 8.

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