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Free CIPP-E Exam Braindumps (page: 5)

Page 4 of 68
PDF with 290 Questions

What type of data lies beyond the scope of the General Data Protection Regulation?

  1. Pseudonymized
  2. Anonymized
  3. Encrypted
  4. Masked

Answer(s): B

Explanation:

: The General Data Protection Regulation (GDPR) is a data protection law that applies to the processing of personal data of individuals in the European Union (EU) and the European Economic Area (EEA). Personal data is any information relating to an identified or identifiable natural person, such as name, address, email, phone number, etc. The GDPR does not apply to personal data that is anonymized, meaning that it cannot be linked back to a specific individual. Anonymization can be achieved by removing or masking any identifying information from the data, such as using pseudonyms, aggregating or generalizing the data, or applying statistical methods.

Therefore, the type of data that lies beyond the scope of the GDPR is anonymized data.


Reference:

1: Free CIPP/E Study Guide - International Association of Privacy Professionals 2: CIPP/E Certification - International Association of Privacy Professionals


https://www.datainspektionen.se/other-lang/in-english/the-general-data-protection- regulation-gdpr/ the-purposes-and-scope-of-the-general-data-protection-regulation/ https://commission.europa.eu/law/law-topic/data-protection/reform/what-personal- data_en#:~:text=Different%20pieces%20of%20information%2C%20which,the%20scope%20of%20th e%20GDPR. B. ANONYMIZED Personal data is any information that relates to an identified or identifiable living individual. Different pieces of information, which collected together can lead to the identification of a particular person, also constitute personal data. Personal data that has been de- identified, encrypted or pseudonymised but can be used to re-identify a person remains personal data and falls within the scope of the GDPR. Personal data that has been rendered anonymous in such a way that the individual is not or no longer identifiable is no longer considered personal data. For data to be truly anonymised, the anonymisation must be irreversible.



Under what circumstances would the GDPR apply to personal data that exists in physical form, such as information contained in notebooks or hard copy files?

  1. Only where the personal data is produced as a physical output of specific automated processing activities, such as printing, labelling, or stamping.
  2. Only where the personal data is to be subjected to specific computerized processing, such as image scanning or optical character recognition.
  3. Only where the personal data is treated by automated means in some way, such as computerized distribution or filing.
  4. Only where the personal data is handled in a sufficiently structured manner so as to form part of a filing system.

Answer(s): D

Explanation:

The GDPR applies to all personal data, regardless of whether it exists in physical form or not. The GDPR defines personal data as any information relating to an identified or identifiable natural person, such as names, identification numbers, location data, or online identifiers. Therefore, any information that can be linked directly or indirectly to a natural person is considered personal data under the GDPR.
However, the GDPR also distinguishes between different types of processing activities and their legal bases. Processing activities are the operations performed on personal data, such as collection, storage, use, disclosure, or deletion. Processing activities can be either automated or manual. Automated processing means using technology to perform processing activities without human intervention. Manual processing means using human intervention to perform processing activities. The GDPR requires that any processing activity that involves personal data must comply with certain principles and conditions, such as lawfulness, fairness, transparency, purpose limitation, data minimization, accuracy, storage limitation, integrity and confidentiality. These principles and conditions apply to both automated and manual processing activities. Therefore, the GDPR applies to personal data that exists in physical form only when it is processed by an automated means in some way that affects its rights and freedoms. For example, if a company scans paper documents and stores them electronically in a database without deleting them after a certain period of time or when they are no longer needed for the original purpose for which they were collected (Article 6), then this would be considered an automated processing activity that involves personal data in physical form.
However, the GDPR does not apply to personal data that exists in physical form when it is handled in a sufficiently structured manner so as to form part of a filing system. For example, if a company keeps paper documents in folders labeled with names and dates on their office shelves without scanning them or storing them electronically anywhere else (Article 5), then this would not be considered an automated processing activity that involves personal data in physical form.


Reference:

Physical Data - GDPR Summary
What GDPR Means for Your Physical Records - Access
Personal Data - Data Protection Act 2018


https://www.zimmerslaw.com/english-1/data-protection/



SCENARIO

Please use the following to answer the next question:

You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company's revenue is due to international sales.

The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's Questions: on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.

When a child asks the toy a question, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's question. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.

In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character's abilities remain intact.

Why is this company obligated to comply with the GDPR?

  1. The company has offices in the EU.
  2. The company employs staff in the EU.
  3. The company's data center is located in a country outside the EU.
  4. The company's products are marketed directly to EU customers.

Answer(s): D

Explanation:

You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company's revenue is due to international sales. The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's Questions: on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.
When a child asks the toy a question, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's question. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.
In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of home and have the character's abilities remain intact.

Why is this company obligated to comply with the GDPR?
A) The company has offices in the EU. B. The company employs staff in the EU. C. The company's data center is located in a country outside the EU. D. The company's products are marketed directly to EU customers.
Answer
Verified

Answer(s): D. The company's products are marketed directly to EU customers.

Comprehensive According to section 6(1)© of the GDPR1, personal data shall be processed by organisations, which offer goods or services or otherwise carry out activities, in relation to which processing of personal data may be regarded as relevant for their legitimate interests. The legitimate interests referred to are those arising from the performance of a task carried out in their name or on their behalf, or for their own purposes. The legitimate interests referred to are those arising from the performance of a task carried out in their name or on their behalf, or for their own purposes. The legitimate interests referred to are those arising from the performance of a task carried out in their name or on their behalf, or for their own purposes. The legitimate interests referred to are those arising from the performance of a task carried out in their name or on their behalf, or for their own purposes. The legitimate interests referred to are those arising from the performance of a task carried out in their name or on their behalf, or for their own purposes. The legitimate interests referred to are those arising from the performance of a task carried out in their name or on their behalf, or for their own purposes. The legitimate interests referred to are those arising from the performance



SCENARIO

Please use the following to answer the next question:

You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asi

  1. A large portion of the company's revenue is due to international sales.
    The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's Questions: on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well. The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.
    When a child asks the toy a question, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's question. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.
    In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character's abilities remain intact.
    What presents the BIGGEST potential privacy issue with the company's practices?
  2. The NFC portal can read any data stored in the action figures
  3. The information about the data processing involved has not been specified
  4. The cloud service provider is in a country that has not been deemed adequate
  5. The RFID tag in the action figures has the potential for misuse because of the toy's evolving capabilities

Answer(s): B

Explanation:

While all of the options present potential privacy issues, the lack of transparency about data processing poses the biggest risk for several reasons:
Uninformed Consent: Without clear information about data collection and usage, children and parents cannot make informed decisions about using the toys. This violates the principle of informed consent, which is a cornerstone of data protection laws. Hidden Features: The packaging and privacy policy do not disclose the hidden functionality of the toys, including the connection to the cloud and data processing in South Africa. This lack of transparency creates distrust and raises concerns about potential misuse of data. Unclear Data Flow: The explanation provided about the data flow is vague and incomplete. It is unclear what data is collected, how it is stored, for what purposes it is used, and who has access to it. This lack of clarity creates uncertainty and raises concerns about potential data breaches or leaks. Limited Control: Without detailed information about data practices, users have limited control over their information. They cannot opt out of data collection or request deletion of their data, further hindering their privacy rights.






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