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IAPP Certified Information Privacy Professional/Europe (CIPP/E) Sample Questions (Q298-Q303):

NEW QUESTION # 298
Which GDPR principle would a Spanish employer most likely depend upon to annually send the personal data of its employees to the national tax authority?

• A. The consent of the employees.
• B. The legitimate interest of the public administration.
• C. The legal obligation of the employer.
• D. The protection of the vital interest of the employees.

Answer: C

Explanation:
Reference https://www.huntonprivacyblog.com/2020/03/25/spanish-dpa-publishes-report-on-data-processing- activities-in-relation-to-covid-19/

 

NEW QUESTION # 299
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.
Under what condition could the surveillance system be used on the personal devices of employees?

• A. Only if the employer offers an adequate compensation for using the employee's devices.
• B. Only if the employees give valid consent and the monitoring is narrowly limited to their professional tasks.
• C. Only if the cloud that stores the monitoring data is certified by the EDPB as GDPR compliant.
• D. Only if the monitoring system is manufactured by a European vendor storing the monitoring data within the EU.

Answer: B

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 condition under which the surveillance system could be used on the personal devices of employees is if the employees give valid consent and the monitoring is narrowly limited to their professional tasks. This option is the most consistent with the GDPR's principles and requirements, as it:
Is based on a valid legal ground for the processing of personal data, namely the consent of the data subject, which must be freely given, specific, informed and unambiguous, and which can be withdrawn at any time.
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, and which do not fall under any of the exceptions listed in the regulation.
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 valid conditions for using the surveillance system on the personal devices of employees, as they:
Are not based on a valid legal ground for the processing of personal data, as they either rely on the legitimate interests of the employer, which are not balanced with the rights and freedoms of the employees, or on the compliance with a legal obligation, which does not apply to the use of personal devices.
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.

 

NEW QUESTION # 300
SCENARIO
Please use the following to answer the next question:
Due to rapidly expanding workforce, Company A has decided to outsource its payroll function to Company B. Company B is an established payroll service provider with a sizable client base and a solid reputation in the industry.
Company B's payroll solution for Company A relies on the collection of time and attendance data obtained via a biometric entry system installed in each of Company A's factories. Company B won't hold any biometric data itself, but the related data will be uploaded to Company B's UK servers and used to provide the payroll service. Company B's live systems will contain the following information for each of Company A's employees:
Name
Address
Date of Birth
Payroll number
National Insurance number
Sick pay entitlement
Maternity/paternity pay entitlement
Holiday entitlement
Pension and benefits contributions
Trade union contributions
Jenny is the compliance officer at Company A.
She first considers whether Company A needs to carry out a data protection impact assessment in relation to the new time and attendance system, but isn't sure whether or not this is required.
Jenny does know, however, that under the GDPR there must be a formal written agreement requiring Company B to use the time and attendance data only for the purpose of providing the payroll service, and to apply appropriate technical and organizational security measures for safeguarding the data. Jenny suggests that Company B obtain advice from its data protection officer. The company doesn't have a DPO but agrees, in the interest of finalizing the contract, to sign up for the provisions in full. Company A enters into the contract.
Weeks later, while still under contract with Company A, Company B embarks upon a separate project meant to enhance the functionality of its payroll service, and engages Company C to help. Company C agrees to extract all personal data from Company B's live systems in order to create a new database for Company B.
This database will be stored in a test environment hosted on Company C's U.S. server. The two companies agree not to include any data processing provisions in their services agreement, as data is only being used for IT testing purposes.
Unfortunately, Company C's U.S. server is only protected by an outdated IT security system, and suffers a cyber security incident soon after Company C begins work on the project. As a result, data relating to Company A's employees is visible to anyone visiting Company C's website. Company A is unaware of this until Jenny receives a letter from the supervisory authority in connection with the investigation that ensues. As soon as Jenny is made aware of the breach, she notifies all affected employees.
The GDPR requires sufficient guarantees of a company's ability to implement adequate technical and organizational measures. What would be the most realistic way that Company B could have fulfilled this requirement?

• A. Requesting advice and technical support from Company A's IT team.
• B. Avoiding the use of another company's data to improve their own services.
• C. Hiring companies whose measures are consistent with recommendations of accrediting bodies.
• D. Vetting companies' measures with the appropriate supervisory authority.

Answer: C

Explanation:
Article 82 of the GDPR1234 regulates the right to compensation and liability for any person who has suffered material or non-material damage as a result of an infringement of the GDPR.
Paragraph 4 of Article 821234 states that a controller or processor shall be exempt from liability under paragraph 2 (which holds them liable for the damage caused by processing which infringes the GDPR) if it proves that it is not in any way responsible for the event giving rise to the damage.
Therefore, the right to compensation and liability under the GDPR provides for an exemption from liability if the data controller (or data processor) proves that it is not in any way responsible for the event giving rise to the damage.
Reference:
1: Art. 82 GDPR - Right to compensation and liability - General Data Protection Regulation (GDPR)
2: Art. 82 GDPR - Right to compensation and liability - GDPR.eu
3: GDPR Article 82: Right to compensation and liability - Advisera
4: Article 82 GDPR | Right to compensation and liability

 

NEW QUESTION # 301
In which scenario is a Controller most likely required to undertake a Data Protection Impact Assessment?

• A. When personal data is being transferred outside of the EEA.
• B. When the controller is collecting email addresses from individuals via an online registration form for marketing purposes.
• C. When personal data is being collected and combined with other personal data to profile the creditworthiness of individuals.
• D. When the controller is required to have a Data Protection Officer.

Answer: C

Explanation:
According to the GDPR, a data protection impact assessment (DPIA) is a process to help identify and minimize the data protection risks of a project. A DPIA is required when the processing is likely to result in a high risk to the rights and freedoms of natural persons, taking into account the nature, scope, context and purposes of the processing. The GDPR provides a list of examples of processing operations that require a DPIA, such as:
* Systematic and extensive evaluation of personal aspects relating to natural persons which is based on automated processing, including profiling, and on which decisions are based that produce legal effects concerning the natural person or similarly significantly affect the natural person.
* Processing on a large scale of special categories of data or of personal data relating to criminal convictions and offences.
* Systematic monitoring of a publicly accessible area on a large scale.
Therefore, an example of a scenario where a controller is most likely required to undertake a DPIA is when personal data is being collected and combined with other personal data to profile the creditworthiness of individuals, as this involves a systematic and extensive evaluation of personal aspects based on automated processing and profiling, and may have significant effects on the individuals. The other scenarios are not necessarily indicative of a high risk to the rights and freedoms of natural persons, and do not fall under the examples of processing operations that require a DPIA provided by the GDPR. References: Free CIPP/E Study Guide, page 37; CIPP/E Certification, page 18; GDPR, Article 35, Recital 91.
Reference: https://www.tandfonline.com/doi/full/10.1080/13600834.2020.1790092#:~:text=Article%2035%
20of
%20the%20General,and%20freedoms%20of%20natural%20persons%27.

 

NEW QUESTION # 302
What type of data lies beyond the scope of the General Data Protection Regulation?

• A. Pseudonymized
• B. Encrypted
• C. Anonymized
• D. Masked

Answer: C

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, etc12. The GDPR does not apply to personal data that is anonymized, meaning that it cannot be linked back to a specific individual12. 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 methods12.
Therefore, the type of data that lies beyond the scope of the GDPR is anonymized data.
References: 1: Free CIPP/E Study Guide - International Association of Privacy Professionals 2: CIPP/E Certification - International Association of Privacy Professionals Reference: 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%20the%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.

 

NEW QUESTION # 303
......

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