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Exam CIPP-US Materials | CIPP-US New Dumps Sheet

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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q51-Q56):

NEW QUESTION # 51
Which of the following became the first state to pass a law specifically regulating the collection of biometric data?

A. California.
B. Texas.
C. Washington.
D. Illinois.

Answer: D

Explanation:
Illinois became the first state to pass a law specifically regulating the collection of biometric data in 2008, when it enacted the Biometric Information Privacy Act (BIPA). BIPA defines biometric identifiers as retina or iris scans, fingerprints, voiceprints, or scans of hand or face geometry, and biometric information as any information based on biometric identifiers used to identify an individual. BIPA requires entities that collect, store, or use biometric identifiers or information to obtain informed consent from individuals, provide written policies on data retention and destruction, limit disclosure and sale of biometric data, and protect biometric data using reasonable security measures. BIPA also provides a private right of action for individuals whose biometric data is collected, stored, or used in violation of the law, and allows them to recover statutory damages of $1,000 or actual damages, whichever is greater, for each negligent violation, and $5,000 or actual damages, whichever is greater, for each intentional or reckless violation, as well as attorneys' fees and costs, and injunctive relief.

NEW QUESTION # 52
What is the main challenge financial institutions face when managing user preferences?

A. Ensuring that preferences are applied consistently across channels and platforms
B. Ensuring they are in compliance with numerous complex state and federal privacy laws
C. Determining the legal requirements for sharing preferences with their affiliates
D. Developing a mechanism for opting out that is easy for their consumers to navigate

Answer: A

Explanation:
Financial institutions (FIs) collect and process a large amount of personal data from their customers, such as name, address, account number, transaction history, credit score, etc. Customers may have different preferences regarding how their data is used, shared, or protected by the FIs. For example, some customers may want to receive marketing offers from the FIs or their affiliates, while others may opt out of such communications. Some customers may prefer to access their accounts online, while others may use mobile apps, phone calls, or physical branches. Some customers may want to enable biometric authentication, while others may rely on passwords or PINs.
Managing these diverse and dynamic user preferences is a challenge for FIs, as they need to ensure that they respect and honor the choices of their customers across all the channels and platforms they use. This requires FIs to have arobust and integrated system that can capture, store, update, and apply user preferences consistently and accurately. Failing to do so may result in customer dissatisfaction, loss of trust, regulatory fines, or legal disputes.12 References: 1: The Top Three Digital Challenges Faced By Financial Institutions And How To Overcome Them3, paragraph 42: IAPP CIPP/US Certified Information Privacy Professional Study Guide, page 127.

NEW QUESTION # 53
A covered entity suffers a ransomware attack that affects the personal health information (PHI) of more than 500 individuals. According to Federal law under HIPAA, which of the following would the covered entity NOT have to report the breach to?

A. The affected individuals
B. Medical providers
C. The local media
D. Department of Health and Human Services

Answer: B

Explanation:
According to the Health Insurance Portability and Accountability Act (HIPAA), a covered entity is a health plan, a health care clearinghouse, or a health care provider that transmits any health information in electronic form in connection with a transaction covered by HIPAA. A covered entity must report a breach of unsecured protected health information (PHI) to the following parties:
The Department of Health and Human Services (HHS), which is the federal agency responsible for enforcing HIPAA and issuing regulations and guidance on privacy and security issues. A covered entity must notify HHS of a breach affecting 500 or more individuals without unreasonable delay and in no case later than 60 days after discovery of the breach. A covered entity must also notify HHS of breaches affecting fewer than 500 individuals within 60 days of the end of the calendar year in which the breaches occurred.
The affected individuals, who are the individuals whose PHI has been, or is reasonably believed to have been, accessed, acquired, used, or disclosed as a result of the breach. A covered entity must notify the affected individuals without unreasonable delay and in no case later than 60 days after discovery of the breach. The notification must be in writing by first-class mail or, if the individual agrees, by electronic mail. The notification must include a brief description of the breach, the types of information involved, the steps the individual should take to protect themselves, the steps the covered entity is taking to investigate and mitigate the breach, and the contact information of the covered entity.
The local media, if the breach affects more than 500 residents of a state or jurisdiction. A covered entity must notify prominent media outlets serving the state or jurisdiction without unreasonable delay and in no case later than 60 days after discovery of the breach. The notification must include the same information as the notification to the affected individuals. A covered entity does not have to report the breach to medical providers, unless they are also affected individuals or business associates of the covered entity. A business associate is a person or entity that performs certain functions or activities on behalf of, or provides certain services to, a covered entity that involve the use or disclosure of PHI. A covered entity must have a written contract or agreement with its business associates that requires them to protect the privacy and security of PHI and report any breaches to the covered entity.

NEW QUESTION # 54
Global Manufacturing Co's Human Resources department recently purchased a new software tool. This tool helps evaluate future candidates for executive roles by scanning emails to see what those candidates say and what is said about them. This provides the HR department with an automated "360 review" that lets them know how the candidate thinks and operates, what their peers and direct reports say about them, and how well they interact with each other.
What is the most important step for the Human Resources Department to take when implementing this new software?

A. Confirming that employees have read and signed the employee handbook where they have been advised that they have no right to privacy as long as they are using the organization's systems, regardless of the protected group or laws enforced by EEOC.
B. Making sure that the software does not unintentionally discriminate against protected groups.
C. Providing notice to employees that their emails will be scanned by the software and creating automated profiles.
D. Ensuring that the software contains a privacy notice explaining that employees have no right to privacy as long as they are running this software on organization systems to scan email systems.

Answer: B

NEW QUESTION # 55
Which act violates the Family Educational Rights and Privacy Act of 1974 (FERPA)?

A. University police provide an arrest report to a student's hometown police, who suspect him of a similar crime
B. A newspaper prints the names, grade levels, and hometowns of students who made the quarterly honor roll
C. A university posts a public student directory that includes names, hometowns, e-mail addresses, and majors
D. A K-12 assessment vendor obtains a student's signed essay about her hometown from her school to use as an exemplar for public release

Answer: D

Explanation:
The Family Educational Rights and Privacy Act of 1974 (FERPA) is a federal law that protects the privacy of student education records. FERPA grants parents or eligible students the right to access, amend, and control the disclosure of their education records, with some exceptions. Schools must obtain written consent from the parent or eligible student before disclosing any personally identifiable information from the education records, unless an exception applies123 Option A violates FERPA because it involves the disclosure of a student's personally identifiable information (PII) from the education records without consent. A student's signed essay about her hometown is considered an education record under FERPA, as it is directly related to the student and maintained by the school12 A K-
12 assessment vendor is not a school official with a legitimate educational interest, nor does it fall under any of the exceptions that allow disclosure without consent12 Therefore, the school must obtain the student's (or the parent's, if the student is a minor) written consent before providing the essay to the vendor for public release.
Option B does not violate FERPA because it involves the disclosure of directory information, which is not considered PII under FERPA. Directory information is information that would not generally be considered harmful or an invasion of privacy if disclosed, such as name, address, phone number, e-mail address, major, etc12 Schools may disclose directory information without consent, unless the parent or eligible student has opted out of such disclosure12 However, schools must notify parents and eligible students of the types of directory information they designate and their right to opt out annually12 Option C does not violate FERPA because it involves the disclosure of information that is not part of the education records. FERPA only applies to education records that are directly related to a student and maintained by the school or a party acting for the school12 A newspaper's publication of the names, grade levels, and hometowns of students who made the quarterly honor roll is not based on the education records, but on the newspaper's own sources and reporting. Therefore, FERPA does not prohibit such disclosure.
Option D does not violate FERPA because it involves the disclosure of information under an exception that allows disclosure without consent. FERPA permits schools to disclose education records, or PII from education records, without consent to comply with a judicial order or lawfully issued subpoena, or to appropriate officials in connection with a health or safety emergency123 If the university police provide an arrest report to the student's hometown police in response to a subpoena or to prevent a serious threat to the student or others, they are not violating FERPA.
References: 1: Family Educational Rights and Privacy Act - Wikipedia 2: Family Educational Rights and Privacy Act (FERPA) | CDC 3: What is FERPA? | Protecting Student Privacy - ed

NEW QUESTION # 56
......

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