IAPP Certified Information Privacy Professional/United States CIPP/US Exam Questions

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Total 195 questions
Question 1

Which of the following federal agencies does NOT enforce the Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA)?



Answer : C

The Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA) is a federal regulation that requires any person or entity that maintains or possesses consumer information derived from consumer reports to dispose of such information in a secure and proper manner1.

The Disposal Rule aims to protect consumers from identity theft and fraud by preventing unauthorized access to or use of their personal information1.

The Disposal Rule is enforced by several federal agencies, depending on the type and sector of the entity that is subject to the rule1. These agencies include:

The Federal Trade Commission (FTC), which has general authority over most entities that are not specifically regulated by other agencies2.

The Consumer Financial Protection Bureau (CFPB), which has authority over consumer financial products and services, such as banks, credit unions, lenders, debt collectors, and credit reporting agencies3.

The Office of the Comptroller of the Currency (OCC), which has authority over national banks and federal savings associations4.

The Federal Deposit Insurance Corporation (FDIC), which has authority over state-chartered banks that are not members of the Federal Reserve System and state-chartered savings associations5.

The Board of Governors of the Federal Reserve System (FRB), which has authority over state-chartered banks that are members of the Federal Reserve System, bank holding companies, and certain nonbank subsidiaries of bank holding companies.

The National Credit Union Administration (NCUA), which has authority over federally insured credit unions.

The Securities and Exchange Commission (SEC), which has authority over brokers, dealers, investment companies, and investment advisers.

The Commodity Futures Trading Commission (CFTC), which has authority over commodity futures and options markets and intermediaries.

The Department of Health and Human Services (HHS) is NOT one of the federal agencies that enforces the Disposal Rule under FACTA. HHS has authority over health information privacy and security under the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH), but not under FACTA.


Question 2

U.S. federal laws protect individuals from employment discrimination based on all of the following EXCEPT?



Answer : C


Question 3

SCENARIO

Please use the following to answer the next QUESTION:

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer's data handling practices.

The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her

withdrawal of consent and request for erasure of her personal dat

a. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: ''Please act immediately by identifying all personal data received from our company.''

This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup's rapid market penetration.

As the Company's data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

Under the General Data Protection Regulation (GDPR), how would the U.S.-based startup company most likely be classified?



Answer : B

The data privacy leader needs to identify all the personal data that the Company has received from the retailer, as well as the purposes, retention periods, and sharing practices of such data. Since the data inventory is obsolete, the data privacy leader cannot rely on it to provide accurate and complete information. Therefore, the next best source of information is to interview the key marketing personnel who are responsible for the partnership with the retailer and the use of the personal data. The marketing personnel can provide insights into the data flows, the data categories, the data processing activities, and the data protection measures that the Company has implemented. They can also help the data privacy leader to locate the relevant documents, contracts, and records that can support the investigation.Reference:[IAPP CIPP/US Study Guide], Chapter 5: Data Management, p. 97-98;IAPP Privacy Tech Vendor Report, Data Mapping and Inventory, p. 9-10.


Question 4

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?



Answer : C

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).Reference:

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


Question 5

According to FERPA, when can a school disclose records without a student's consent?



Answer : D

According to FERPA, a school may disclose personally identifiable information (PII) from an eligible student's education records without consent if the disclosure meets one of the exceptions in 34 CFR 99.31. One of these exceptions is for disclosures to other schools to which a student seeks or intends to enroll, or is already enrolled if the disclosure is for purposes related to the student's enrollment or transfer (34 CFR 99.31(a)(2)). This exception allows schools to disclose transcripts, recommendations, or other information that may facilitate the student's admission or enrollment at another school. However, the school must make a reasonable attempt to notify the student of the disclosure, unless the student initiated the disclosure, and must provide the student with a copy of the records that were disclosed upon request (34 CFR 99.34(a)(1)).Reference:https://studentprivacy.ed.gov/ferpa

https://studentprivacy.ed.gov/ferpa


Question 6

What do the Civil Rights Act, Pregnancy Discrimination Act, Americans with Disabilities Act, Age Discrimination Act, and Equal Pay Act all have in common?



Answer : C

The Civil Rights Act, Pregnancy Discrimination Act, Americans with Disabilities Act, Age Discrimination Act, and Equal Pay Act are all federal laws that prohibit employment discrimination based on certain protected characteristics, such as race, sex, disability, age, and pay1234These laws also afford certain classes of employees' privacy protection by limiting inquiries concerning their personal information that may reveal their protected status or be used for discriminatory purposes. For example:

The Civil Rights Act of 1964 prohibits employers from making pre-employment inquiries that express a preference, limitation, or specification based on race, color, religion, sex, or national origin, unless they are bona fide occupational qualifications.

The Pregnancy Discrimination Act of 1978, which amended the Civil Rights Act of 1964, prohibits employers from making pre-employment inquiries about whether an applicant is pregnant or intends to become pregnant, unless they are related to the ability to perform the job.

The Americans with Disabilities Act of 1990 prohibits employers from making pre-employment inquiries about whether an applicant has a disability or the nature or severity of a disability, unless they are related to the ability to perform the essential functions of the job with or without reasonable accommodation.

The Age Discrimination in Employment Act of 1967 prohibits employers from making pre-employment inquiries about an applicant's age, unless they are related to a bona fide occupational qualification or a lawful affirmative action plan.

The Equal Pay Act of 1963 prohibits employers from making pre-employment inquiries about an applicant's salary history, unless they are made for a lawful purpose other than determining the applicant's pay.

Option A is incorrect because these laws do not require employers not to discriminate against certain classes when employees use personal information.Rather, they require employers not to discriminate against certain classes in any aspect of employment, such as hiring, firing, pay, promotion, training, benefits, etc1234The use of personal information by employees is not directly addressed by these laws, although it may be subject to other privacy laws or policies.

Option B is incorrect because these laws do not require that employers provide reasonable accommodations to certain classes of employees. Rather, only the Americans with Disabilities Act and the Pregnancy Discrimination Act require employers to provide reasonable accommodations to qualified individuals with disabilities and workers with limitations related to pregnancy, childbirth, or related medical conditions, respectively, unless doing so would cause an undue hardship to the employer. The other laws do not have a similar requirement, although they may prohibit employers from denying equal opportunities to certain classes of employees.

Option C is correct because these laws afford certain classes of employees' privacy protection by limiting inquiries concerning their personal information that may reveal their protected status or be used for discriminatory purposes, as explained above.

Option D is incorrect because these laws do not permit employers to use or disclose personal information specifically about employees who are members of certain classes. Rather, these laws generally prohibit employers from using or disclosing personal information that is protected by these laws for any unlawful or discriminatory purpose, unless an exception applies. For example, employers may use or disclose such information for legitimate business reasons, such as complying with reporting requirements, administering benefits, or conducting investigations.


Question 7

If an organization maintains data classified as high sensitivity in the same system as data classified as low sensitivity, which of the following is the most likely outcome?



Answer : B

Data classification is the process of categorizing data based on its sensitivity and importance to determine its level of confidentiality and protection.Data classification helps organizations apply appropriate security and compliance measures to ensure each category receives proper protection1.Data classification also helps organizations identify which data is subject to specific privacy laws and regulations, such as the GDPR, HIPAA, or CCPA, and how to handle data subject requests, data breaches, or legal discovery2. If an organization maintains data classified as high sensitivity, such as personal information, financial information, or health information, in the same system as data classified as low sensitivity, such as public information or internal information, it increases the risk of exposing the high sensitivity data in the event of a data breach. A data breach can result in legal consequences, reputational damage, and loss of trust from customers and stakeholders.Therefore, it is advisable to segregate data based on its classification and apply different levels of encryption, access control, and monitoring to each category3. This way, the organization can minimize the impact of a data breach and protect the privacy and security of its data assets.Reference:

Why Is Data Classification Important?

Data Classification for GDPR Explained

Data classification and privacy considerations


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Total 195 questions