(Jun-2024) Latest CIPP-US Dumps for Success in Actual IAPP Certified
Changing the Concept of CIPP-US Exam Preparation 2024
IAPP CIPP-US Exam covers a wide range of topics, including the US privacy legal framework, data protection regulations and standards, privacy program management, and privacy operations. CIPP-US exam is specifically designed for individuals who work in the field of privacy, including privacy officers, data protection officers, legal professionals, and compliance professionals. The CIPP-US certification is recognized globally as a mark of excellence in the privacy profession.
NEW QUESTION # 101
A student has left high school and is attending a public postsecondary institution. Under what condition may a school legally disclose educational records to the parents of the student without consent?
- A. If the student has not yet turned 18 years of age
- B. If the student has applied to transfer to another institution
- C. If the student is still a dependent for tax purposes
- D. If the student is in danger of academic suspension
Answer: C
Explanation:
The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of students' educational records. FERPA generally requiresschools to obtain written consent from students before disclosing their records to third parties, such as parents. However, FERPA allows some exceptions to this rule, such as when the disclosure is for health or safety emergencies, or when the student is still a dependent for tax purposes. According to FERPA, a school may disclose educational records to the parents of a student who is claimed as a dependent on the parents' most recent federal income tax return, without the student's consent.
This exception applies regardless of the student's age or enrollment status at a postsecondary institution. References:
* IAPP CIPP/US Body of Knowledge, Section III, C, 2
* [IAPP CIPP/US Study Guide, Chapter 3, Section 3.5]
* [FERPA, 34 CFR ยง 99.31(a)(8)]
NEW QUESTION # 102
A large online bookseller decides to contract with a vendor to manage Personal Information (PI). What is the least important factor for the company to consider when selecting the vendor?
- A. The vendor's reputation
- B. The vendor's financial health
- C. The vendor's employee training program
- D. The vendor's employee retention rates
Answer: D
Explanation:
While it is important for a company to consider the reputation and financial health of a vendor, as well as their employee training program, the retention rates of the vendor's employees are not a direct indicator of the vendor's ability to protect personal information. It is important for the company to ensure that the vendor has appropriate security measures in place to protect personal information, such as access controls, encryption, and data breach response procedures. The company should also consider the vendor's compliance with applicable privacy and data protection laws, as well as their experience working with sensitive personal information. Overall, while employee retention rates may indirectly reflect the quality of the vendor's services, they are not a direct factor in assessing the vendor's ability to manage personal information.
NEW QUESTION # 103
Which of the following became the first state to pass a law specifically regulating the practices of data brokers?
- A. New York.
- B. Washington.
- C. Vermont.
- D. California.
Answer: C
NEW QUESTION # 104
Most states with data breach notification laws indicate that notice to affected individuals must be sent in the
"most expeditious time possible without unreasonable delay." By contrast, which of the following states currently imposes a definite limit for notification to affected individuals?
- A. New York
- B. California
- C. Maine
- D. Florida
Answer: D
Explanation:
Explanation/Reference: https://www.itgovernanceusa.com/data-breach-notification-laws
NEW QUESTION # 105
Which of the following best describes an employer's privacy-related responsibilities to an employee who has left the workplace?
- A. An employer has a responsibility to maintain a former employee's access to computer systems and company data needed to support claims against the company such as discrimination.
- B. An employer has a responsibility to permanently delete or expunge all sensitive employment records to minimize privacy risks to both the employer and former employee.
- C. An employer has a responsibility to maintain the security and privacy of any sensitive employment records retained for a legitimate business purpose.
- D. An employer may consider any privacy-related responsibilities terminated, as the relationship between employer and employee is considered primarily contractual.
Answer: C
Explanation:
A legitimate business purpose for retaining records could aid with references, benefits & pension inquiries; legal proceedings, legal or regulation retention requirements; health & safety issues; etc.
NEW QUESTION # 106
The use of cookies on a website by a service provider is generally not deemed a 'sale' of personal information by CCPA, as long as which of the following conditions is met?
- A. The analytics cookies placed by the service provider are capable of being tracked but cannot be linked to a particular consumer of that business.
- B. The service provider retains personal information obtained in the course of providing the services specified in the agreement with the subcontractors.
- C. The third party stores personal information to trigger a response to a consumer's request to exercise their right to opt in.
- D. The information collected by the service provider is necessary to perform debugging and the business and service provider have entered into an appropriate agreement.
Answer: B
NEW QUESTION # 107
SCENARIO
Please use the following to answer the next QUESTION
Otto is preparing a report to his Board of Directors at Filtration Station, where he is responsible for the privacy program. Filtration Station is a U.S. company that sells filters and tubing products to pharmaceutical companies for research use. The company is based in Seattle, Washington, with offices throughout the U.S.
and Asia. It sells to business customers across both the U.S. and the Asia-Pacific region. Filtration Station participates in the Cross-Border Privacy Rules system of the APEC Privacy Framework.
Unfortunately, Filtration Station suffered a data breach in the previous quarter. An unknown third party was able to gain access to Filtration Station's network and was able to steal data relating to employees in the company's Human Resources database, which is hosted by a third-party cloud provider based in the U.S. The HR data is encrypted. Filtration Station also uses the third-party cloud provider to host its business marketing contact database. The marketing database was not affected by the data breach. It appears that the data breach was caused when a system administrator at the cloud provider stored the encryption keys with the data itself.
The Board has asked Otto to provide information about the data breach and how updates on new developments in privacy laws and regulations apply to Filtration Station. They are particularly concerned about staying up to date on the various U.S. state laws and regulations that have been in the news, especially the California Consumer Privacy Act (CCPA) and breach notification requirements.
The Board has asked Otto whether the company will need to comply with the new California Consumer Privacy Law (CCPA). What should Otto tell the Board?
- A. That business contact information could be considered personal information governed by CCPA.
- B. That the company is governed by CCPA, but does not need to take any additional steps because it follows CPBR.
- C. That CCPA only applies to companies based in California, which exempts the company from compliance.
- D. That CCPA will apply to the company only after the California Attorney General determines that it will enforce the statute.
Answer: A
Explanation:
The CCPA applies to any business that collects personal information of California residents, regardless of where the business is located1. The CCPA defines personal information broadly as any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household2. This could include business contact information, such as name, email address, phone number, or job title, if it is linked to a specific individual3. Therefore, Otto should tell the Board that business contact information could be considered personal information governed by CCPA, and that the company may need to comply with the CCPA requirements, such as providing notice, honoring consumer rights requests, and implementing reasonable security measures4. References:
* CIPP/US Practice Questions (Sample Questions), Question 124, Answer C, Explanation C.
* IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 6, Section 6.2, p.
181-182.
* California Consumer Privacy Act (CCPA), Section 1798.140, Subsection (o).
* CCPA Compliance Checklist for Businesses, Section 2, Subsection (a).
NEW QUESTION # 108
What is the most important action an organization can take to comply with the FTC position on retroactive changes to a privacy policy?
- A. Reassuring customers of the security of their information.
- B. Publicizing the policy changes through social media.
- C. Obtaining affirmative consent from its customers.
- D. Describing the policy changes on its website.
Answer: C
Explanation:
The FTC has stated that it is a deceptive practice to make retroactive changes to a privacy policy that affect how a company uses or shares previously collected personal information, unless the company obtains affirmative consent from the affected consumers. This means that the company must clearly and conspicuously disclose the changes and obtain the consumers' express agreement to them. Simply describing the policy changes on the website, publicizing them through social media, or reassuring customers of the security of their information are not sufficient to comply with the FTC's position. References:
* FTC Staff Revises Online Behavioral Advertising Principles, paragraph 3.
* Do I really have to obtain consent from all my customers to make a change to my privacy policy?, paragraph 2.
* IAPP CIPP/US Study Guide, page 64.
NEW QUESTION # 109
Privacy Is Hiring Inc., a CA-based company, is an online specialty recruiting firm focusing on placing privacy professionals in roles at major companies. Job candidates create online profiles outlining their experience and credentials, and can pay $19.99/month via credit card to have their profiles promoted to potential employers. Privacy Is Hiring Inc. keeps all customer data at rest encrypted on its servers.
Under what circumstances would Privacy Is Hiring Inc., need to notify affected individuals in the event of a data breach?
- A. If the job candidates' credit card information and the encryption keys were among the information taken.
- B. If the personal information stolen included the individuals' names and credit card pin numbers.
- C. If Privacy Is Hiring Inc., reasonably believes that job candidates will be harmed by the data breach.
- D. If law enforcement has completed its investigation and has authorized Privacy Is Hiring Inc. to provide the notification to clients and applicable regulators.
Answer: A
Explanation:
Under the California Consumer Privacy Act (CCPA), a business that collects personal information of California residents must notify them of a data breach if their personal information is subject to unauthorized access and exfiltration, theft, or disclosure as a result of the business's violation of the duty to implement and maintain reasonable security procedures and practices. However, the CCPA excludes encrypted or redacted personal information from the definition of personal information, unless the encryption key or security credential is also compromised. Therefore, Privacy Is Hiring Inc. would need to notify the affected individuals only if the encryption keys were also taken along with the credit card information, as this would render the encryption ineffective and expose the personal information to unauthorized access. The other options are not relevant to the CCPA notification requirement, although they may be relevant to other laws or best practices. References: CCPA (Section 1798.150), IAPP CIPP/US Study Guide (p. 63-64)
NEW QUESTION # 110
A financial services company install "bossware" software on its employees' remote computers to monitor performance. The software logs screenshots, mouse movements, and keystrokes to determine whether an employee is being productive. The software can also enable the computer webcams to record video footage.
Which of the following would best support an employee claim for an intrusion upon seclusion tort?
- A. The company creates and saves a biometric template for each employee based upon keystroke dynamics.
- B. The webcam is enabled to record video any time the computer is turned on.
- C. The software automatically sends a notification to a supervisor any time the employee's mouse is dormant for more than five minutes.
- D. The webcam records video of an employee using a company laptop to perform personal business while at a coffee shop during work hours.
Answer: B
Explanation:
An intrusion upon seclusion tort occurs when someone intentionally intrudes, physically or otherwise, upon the solitude or seclusion of another or his private affairs or concerns, if the intrusion would be highly offensive to a reasonable person12. The intrusion does not need to involve a physical trespass, but can also be an electronic or optical intrusion, such as using a webcam to record a person who has a reasonable expectation of privacy2. The intrusion must also cause mental anguish or suffering to the plaintiff2.
In this case, option A would best support an employee claim for an intrusion upon seclusion tort, because the webcam is enabled to record video any time the computer is turned on, regardless of whether the employee is working or not, or whether the employee is in a private or public place. This would be an intentional and highly offensive intrusion into the employee's seclusion or private affairs, and would likely cause the employee distress or anxiety.
Option B would not support an intrusion upon seclusion tort, because the creation and saving of a biometric template based on keystroke dynamics is not an intrusion into the employee's seclusion or private affairs, but rather a data collection and processing activity that may implicate other privacy laws or principles, such as notice, consent, and security3.
Option C would not support an intrusion upon seclusion tort, because the software sending a notification to a supervisor when the employee's mouse is dormant for more than five minutes is not an intrusion into the employee's seclusion or private affairs, but rather a performance monitoring activity that may be justified by the employer's legitimate business interests4.
Option D would not support an intrusion upon seclusion tort, because the webcam recording video of an employee using a company laptop to perform personal business while at a coffee shop during work hours is not an intrusion into the employee's seclusion or private affairs, but rather a misuse of company property and time that may be subject to the employer's policies and disciplinary actions5. Moreover, the employee may not have a reasonable expectation of privacy in a public place like a coffee shop. References: 1: Intrusion on seclusion - Wikipedia 2: Elements of an Intrusion Claim | Digital Media Law Project 3: Biometrics - IAPP 4:
Employee Monitoring - IAPP 5: Employee Privacy - IAPP : Privacy in Public Places - IAPP
NEW QUESTION # 111
In which situation is a company operating under the assumption of implied consent?
- A. A retail clerk asks a customer to provide a zip code at the check-out counter
- B. A landlord uses the information on a completed rental application to run a credit report
- C. An employer contacts the professional references provided on an applicant's resume
- D. An online retailer subscribes new customers to an e-mail list by default
Answer: C
NEW QUESTION # 112
Which of the following would NOT constitute an exception to the authorization requirement under the HIPAA Privacy Rule?
- A. Disclosing health information to file a child abuse report.
- B. Disclosing health information needed to treat a medical emergency.
- C. Disclosing health information for public health activities.
- D. Disclosing health information needed to pay a third party billing administrator.
Answer: B
NEW QUESTION # 113
In what way does the "Red Flags Rule" under the Fair and Accurate Credit Transactions Act (FACTA) relate to the owner of a grocery store who uses a money wire service?
- A. It does not apply because the owner is not a creditor
- B. It requires the owner to implement an identity theft warning system
- C. It is not usually enforced in the case of a small financial institution
- D. It mandates the use of updated technology for securing credit records
Answer: A
Explanation:
https://www.ftc.gov/business-guidance/resources/fighting-identity-theft-red-flags-rule-how-guide-business#who
NEW QUESTION # 114
In 2012, the White House and the FTC both issued reports advocating a new approach to privacy enforcement that can best be described as what?
- A. Self-regulatory.
- B. Notice and choice.
- C. Harm-based.
- D. Comprehensive.
Answer: A
NEW QUESTION # 115
What important action should a health care provider take if the she wants to qualify for funds under the Health Information Technology for Economic and Clinical Health Act (HITECH)?
- A. Bill the majority of patients electronically for their health care
- B. Keep electronic updates about the Health Insurance Portability and Accountability Act
- C. Send health information and appointment reminders to patients electronically
- D. Make electronic health records (EHRs) part of regular care
Answer: D
Explanation:
The HITECH Act was enacted as part of the American Recovery and Reinvestment Act of 2009 to promote the adoption and use of health information technology, especially electronic health records (EHRs), in the United States. The HITECH Act established the Medicare and Medicaid EHR Incentive Programs, which provide financial incentives to eligible health care providers who demonstrate meaningful use of certified EHR technology. Meaningful use is defined as using EHRs to improve quality, safety, efficiency, and coordination of care, as well as to engage patients and protect their privacy and security. To qualify for the incentive payments, health care providers must meet certain objectives and measures that demonstrate meaningful use of EHRs as part of their regular care. Some of these objectives and measures include:
* Protect electronic protected health information (ePHI)
* Generate prescriptions electronically
* Implement clinical decision support (CDS)
* Use computerized provider order entry (CPOE) for medication, laboratory, and diagnostic imaging orders
* Timely patient access to electronic files
* Exchange health information with other providers and public health agencies
* Report clinical quality measures and public health data
Therefore, the correct answer is A. Making EHRs part of regular care is an important action that a health care provider must take if she wants to qualify for funds under the HITECH Act. References:
* What is the HITECH Act? 2024 Update, section "The Meaningful Use Program"
* The HITECH Act explained: Definition, compliance, and violations, section "HITECH Act definition and summary" and "Why was the HITECH Act created and why is it important?"
* Proposed Rulemaking to Implement HITECH Act Modifications, section "The Health Information Technology for Economic and Clinical Health (HITECH) Act"
* Health Information Technology for Economic and Clinical Health (HITECH) Audits, section "The American Recovery & Reinvestment Act of 2009 (ARRA, or Recovery Act)"
* What is HITECH Compliance? Understanding and Meeting HITECH Requirements, section "HITECH Compliance Requirements"
NEW QUESTION # 116
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 a result of the exposed data. The patient's attorney has submitted a discovery request for the ePHI exposed in the breach.
What is the most effective kind of training CloudHealth could have given its employees to help prevent this type of data breach?
- A. Training on CloudHealth's HR policy regarding the role of employees involved data breaches
- B. Training on the difference between confidential and non-public information
- C. Training on the terms of the contractual agreement with HealthCo
- D. Training on techniques for identifying phishing attempts
Answer: D
NEW QUESTION # 117
A large online bookseller decides to contract with a vendor to manage Personal Information (PI). What is the least important factor for the company to consider when selecting the vendor?
- A. The vendor's reputation
- B. The vendor's financial health
- C. The vendor's employee retention rates
- D. The vendor's employee training program
Answer: B
NEW QUESTION # 118
Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
- A. Financial institutions must cease sending e-mails and other forms of advertising to customers who opt out of direct marketing
- B. Financial institutions must use a prescribed level of encryption for most types of customer records
- C. Financial institutions must help ensure a customer's understanding of products and services
- D. Financial institutions must avoid collecting a customer's sensitive personal information
Answer: C
NEW QUESTION # 119
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