SCENARIO
Please use the following to answer the next question:
T-Craze, a German-headquartered specialty t-shirt company, was successfully selling to large German metropolitan cities. However, after a recent merger with another German-based company that was selling to a broader European market, T-Craze revamped its marketing efforts to sell to a wider audience. These efforts included a complete redesign of its logo to reflect the recent merger, and improvements to its website meant to capture more information about visitors through the use of cookies.
T-Craze also opened various office locations throughout Europe to help expand its business.
While Germany continued to host T-Craze's headquarters and main product-design office, its French affiliate became responsible for all marketing and sales activities. The French affiliate recently procured the services of Right Target, a renowned marketing firm based in the Philippines, to run its latest marketing campaign. After thorough research, Right Target determined that T-Craze is most successful with customers between the ages of 18 and 22. Thus, its first campaign targeted university students in several European capitals, which yielded nearly 40% new customers for T-Craze in one quarter. Right Target also ran subsequent campaigns for T- Craze, though with much less success.
The last two campaigns included a wider demographic group and resulted in countless unsubscribe requests, including a large number in Spain. In fact, the Spanish data protection authority received a complaint from Sofia, a mid-career investment banker. Sofia was upset after receiving a marketing communication even after unsubscribing from such communications from the Right Target on behalf of T-Craze.
Why does the Spanish supervisory authority notify the French supervisory authority when it opens an investigation into T-Craze based on Sofia's complaint?
- T-Craze has a French affiliate.
- The French affiliate procured the services of Right Target.
- T-Craze conducts its marketing and sales activities in France.
- The Spanish supervisory authority is providing a courtesy notification not required under the GDPR.
Answer(s): C
Explanation:
According to the CIPP/E study guide, Article 56 of the GDPR establishes the concept of the lead supervisory authority, which is the supervisory authority of the main or single establishment of the data controller or processor in the EU1. The lead supervisory authority has the primary responsibility for dealing with cross-border data processing, in cooperation with other concerned supervisory authorities. Article 60 of the GDPR requires the lead supervisory authority to cooperate with the other supervisory authorities concerned in an endeavour to reach consensus. The other supervisory authorities concerned are those that are established in a Member State where the data controller or processor has an establishment or where data subjects are substantially affected or likely to be substantially affected by the processing. In the scenario, T-Craze is a German-headquartered company that has a French affiliate responsible for all marketing and sales activities. Therefore, the French supervisory authority is the lead supervisory authority for the processing of personal data related to the marketing and sales activities of T-Craze, as it is the supervisory authority of the main establishment of the data controller in the EU. The Spanish supervisory authority is a concerned supervisory authority, as it is the supervisory authority of the Member State where data subjects are likely to be substantially affected by the processing, such as Sofia who filed a complaint. Therefore, the Spanish supervisory authority notifies the French supervisory authority when it opens an investigation into T-Craze based on Sofia's complaint, in order to cooperate with the lead supervisory authority and seek consensus on the action to be taken.
Reference:
1: CIPP/E study guide, page 87; Art. 56 GDPR; Guidelines 3/2018 on the territorial scope of the GDPR (Article 3)2: CIPP/E study guide, page 88; Art. 60 GDPR; Guidelines 3/2018 on the territorial scope of the GDPR (Article 3).
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