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CIPP-E FINAL EXAM QUESTIONS & DETAILED ANSWERS
(WELL VERIFIED) ALREADY GRADED A+
Accountability - CORRECT ANSWER >>> A fair information practices principle, it is the idea that when personal information is to be transferred to another person or organization, the personal information controller should obtain the consent of the individual or exercise due diligence and take reasonable steps to ensure that the recipient person or organization will protect the information consistently with other fair use principles. Adequate Level of Protection - CORRECT ANSWER >>> A label that the EU may apply to thirdparty countries who have committed to protect data through domestic law making or international commitments. Conferring of the label requires a proposal by the European Commission, an Article 29 Working Group Opinion, an opinion of the article 31 Management Committee, a right of scrutiny by the European Parliament and adoption by the European Commission. Adverse Action - CORRECT ANSWER >>> Under the Fair Credit Reporting Act, the term "adverse action" is defined very broadly to include all business, credit and employment actions affecting consumers that can be considered to have a negative impact, such as denying or canceling credit or insurance, or denying employment or promotion. No adverse action occurs in a credit transaction where the creditor makes a counteroffer that is accepted by the consumer. Such an action requires that the decision maker furnish the recipient of the adverse action with a copy of the credit report leading to the adverse action. Annual Reports - CORRECT ANSWER >>> The requirement under the European Data Protection Directive that member state data protection authorities report on their activities at regular intervals. Antidiscrimination Laws - CORRECT ANSWER >>> Refers to the right of people to be treated equally.
Article 29 Working Party - CORRECT ANSWER >>> A European Union organization that functions as an independent advisory body on data protection and privacy. While EU data protection laws are actually enforced by the national Data Protection Authorities of EU member states. Authentication - CORRECT ANSWER >>> The process by which an entity (such as a person or computer system) determines whether another entity is who it claims to be. Authentication identified as an individual based on some credential; i.e. a password, biometrics, etc. Authentication is different from authorization. Proper authentication ensures that a person is who he or she claims to be, but it says nothing about the access rights of the individual. Background Screening/Checks - CORRECT ANSWER >>> Verifying an applicant's ability to function in the working environment as well as assuring the safety and security of existing workers. Background checks range from checking a person's educational background to checking on past criminal activity. Behavioral Advertising - CORRECT ANSWER >>> The act of tracking users' online activities and then delivering ads or recommendations based upon the tracked activities. The most comprehensive form of targeted advertising. By building a profile on a user through their browsing habits such as sites they visit, articles read, searches made, ads previously clicked on, etc., advertising companies place ads pertaining to the known information about the user across all websites visited. Behavioral Advertising also uses data aggregation to place ads on websites that a user may not have shown interest in, but similar individuals had shown interest in. Binding Corporate Rules - CORRECT ANSWER >>> Legally binding internal corporate privacy rules for transferring personal information within a corporate group. BCRs are typically used by corporations that operate in multiple jurisdictions, and they are alternatives to the EU-U.S. Privacy Shield and Model Contract Clauses. BCRs must be approved by the EU data protection authorities of the member states in which the corporation operates. Binding Safe Processor Rules - CORRECT ANSWER >>> Self-regulatory principles (similar to Binding Corporate Rules) for processors that are applicable to customer personal data. Once a supplier's BSPR are approved, a supplier gains "safe processor" status and its customers would
Children's Online Privacy Protection Act (COPPA) of 1998 - CORRECT ANSWER >>> A U.S. federal law that applies to the operators of commercial websites and online services that are directed to children under the age of 13. It also applies to general audience websites and online services that have actual knowledge that they are collecting personal information from children under the age of 13. COPPA requires these website operators: to post a privacy notice on the homepage of the website; provide notice about collection practices to parents; obtain verifiable parental consent before collecting personal information from children; give parents a choice as to whether their child's personal information will be disclosed to third parties; provide parents access and the opportunity to delete the child's personal information and opt out of future collection or use of the information, and maintain the confidentiality, security and integrity of personal information collected from children. Choice - CORRECT ANSWER >>> An individual's ability to determine whether or how their personal information may be used or disclosed by the entity that collected the information. Also, the ability of an individual to limit certain uses of their personal information. For example; an individual may have choice about whether to permit a company to contact them or share their data with third parties. Can be express or implied. Closed Circuit Television - CORRECT ANSWER >>> Systems of cameras, monitors and recording equipment that are not used for broadcasting but are connected to a closed network by cables. CCTV is used primarily for video surveillance of premises. Cloud Computing - CORRECT ANSWER >>> The storage of information on the Internet. Although it is an evolving concept, definitions typically include on-demand accessibility, scalability, and secure access from almost any location. Cloud storage presents unique security risks. Collection Limitation - CORRECT ANSWER >>> A fair information practices principle, it is the principle stating there should be limits to the collection of personal data, that any such data should be obtained by lawful and fair means and, where appropriate, with the knowledge or consent of the data subject. Commercial Activity - CORRECT ANSWER >>> Under PIPEDA, "commercial activity" means any particular transaction, act or conduct, or any regular course of conduct, that is of a commercial
character, including the selling, bartering or leasing of donor, membership or other fundraising lists. Non-profit associations, unions and private schools are likely to be found to exist outside of this definition. Communications Privacy - CORRECT ANSWER >>> One of the four classes of privacy, along with information privacy, bodily privacy and territorial privacy. It encompasses protection of the means of correspondence, including postal mail, telephone conversations, electronic e-mail and other forms of communicative behavior and apparatus. Comprehensive Laws - CORRECT ANSWER >>> Laws that govern the collection, use and dissemination of personal information in the public and private sectors. Computer Forensics - CORRECT ANSWER >>> The discipline of assessing and examining an information system for relevant clues even after it has been compromised by an exploit. Confidentiality - CORRECT ANSWER >>> The obligation of an individual, organization or business to protect personal information and not misuse or wrongfully disclose that information. Consent - CORRECT ANSWER >>> This privacy requirement is one of the fair information practices. Individuals must be able to prevent the collection of their personal data, unless the disclosure is required by law. If an individual has choice (see Choice) about the use or disclosure of his or her information, consent is the individuals' way of giving permission for the use or disclosure. Consent may be affirmative; i.e., opt-in; or implied; i.e., the individual didn't opt out. (1) Explicit Consent: A requirement that an individual "signifies" his or her agreement with a data controller by some active communication between the parties. According to the EU Data Protection Directive, explicit consent is required for processing of sensitive information. Further, data controllers cannot infer consent from non-response to a communication. (2) Implicit Consent: Implied consent arises where consent may reasonably be inferred from the action or inaction of the individual.
body of the EU that makes decisions on issues of EU law and enforces European decisions. Based in Luxembourg, the Court was set up in 1951, and was originally named the Court of Justice of the European Communities. The court is frequently confused with the ECHR, which oversees human rights laws across Europe, including in many non-EU countries, and is not linked to the EU institutions. Customer Access - CORRECT ANSWER >>> A customer's ability to access the personal information collected on them as well as review, correct or delete any incorrect information. Customer Information - CORRECT ANSWER >>> In contrast to employee information, customer information includes data relating to the clients of private-sector organizations, patients within the healthcare sector and the general public within the context of public-sector agencies that provide services. Data Breach - CORRECT ANSWER >>> The unauthorized acquisition of computerized data that compromises the security, confidentiality, or integrity of personal information maintained by a data collector. Breaches do not include good faith acquisitions of personal information by an employee or agent of the data collector for a legitimate purpose of the data collector—provided the personal information is not used for a purpose unrelated to the data collector's business or subject to further unauthorized disclosure. Data Controller - CORRECT ANSWER >>> An entity that has the authority over the processing of personal information. This entity is the focus of most obligations under privacy and data protection laws. It controls the use of personal data by determining the purposes for its use and the manner in which the data will be processed. The data controller may be an individual or an organization that is legally treated as an individual, such as a corporation or partnership. Data Elements - CORRECT ANSWER >>> The different types of personal information processed by data processors. Typical data elements include name, date of birth and numerical identifiers. Organizational data elements tied to both individuals as well as organizations include business addresses, business phone numbers, business e-mail addresses and related information.
Data Processing - CORRECT ANSWER >>> Any operation or set of operations which is performed on personal data, such as collecting; recording; organizing; storing; adapting or altering; retrieving; consulting; using; disclosing by transmission, dissemination or otherwise making the data available; aligning or combining data, or blocking, erasing or destroying data. Not limited to automatic means. Data Processor - CORRECT ANSWER >>> An individual or organization that processes data on behalf of the data controller. Although they are often third-party providers, a data controller can also be a data processor. Data Protection Authority - CORRECT ANSWER >>> An official or body that ensures compliance with data protection laws and investigates alleged breaches of the laws' provisions. Data Protection Commissioner - CORRECT ANSWER >>> The person responsible for the enforcement and monitoring of compliance with data protection legislation, including Data Protection Acts. Commissioners are also responsible for investigating breaches of the legislation and prosecuting the senders of spam e-mails and text messages pursuant to SI 535/2003. Only one such prosecution has occurred to date. In the UK, this function is carried out by the Information Commissioner. Data Quality - CORRECT ANSWER >>> A fair information practices principle, it is the principle that personal data should be relevant to the purposes for which it is to be used, and, to the extent necessary for those purposes, should be accurate, complete and kept up-to-date. The quality of data is judged by four criteria: Does it meet the business needs?; Is it accurate?; Is it complete?, and is it recent? Data is of an appropriate quality if these criteria are satisfied for a particular application. Data Recipient - CORRECT ANSWER >>> A natural or legal person, public authority, agency or any other body which processes personal data on behalf of the data controller. Data Retention Directive - CORRECT ANSWER >>> This directive is designed to align the rules on data retention across the EU member states. It applies to traffic and location data but not to the actual content of communications of both individuals and organizations.
Electronic Communications Data - CORRECT ANSWER >>> Consists of three main categories of personal data: the content of a communication, traffic data, and location data. Electronic Communications Network - CORRECT ANSWER >>> Transmission systems, and, where applicable, switching or routing equipment and other resources that permit the conveyance of signals by wire, radio, optical or other electromagnetic means, including satellite networks; fixed and mobile terrestrial networks; electricity cable systems, to the extent that they are used for the purpose of transmitting signals; networks used for radio and television broadcasting, and cable television networks, irrespective of the type of information conveyed. Electronic Communications Service - CORRECT ANSWER >>> Any service which provides to users thereof the ability to send or receive wire or electronic communications. Employee Personal Data - CORRECT ANSWER >>> A high level of protection is required for employee personal data in the EU. The notice and choice principles of the EU Directive should be honored for all employee data, meaning that an employee should be given notice of the company's intent to share the information and give the employee the choice not to share this information. Encryption - CORRECT ANSWER >>> The process of obscuring information, often through the use of a cryptographic scheme in order to make the information unreadable without special knowledge; i.e., the use of code keys. Established Service Provider - CORRECT ANSWER >>> Under the E-Commerce Directive, an established service provider is a service provider who effectively pursues an economic activity using a fixed establishment for an indefinite period. The presence and use of the technical means and technologies required to provide the service do not, in themselves, constitute an establishment of the provider. EU Data Protection Directive - CORRECT ANSWER >>> Several directives deal with personal data usage in the EU, but the most overarching is the general policy approved by the European Commission in 1995 (95/46EC) which protects individuals' privacy and personal data use. The
Directive was adopted in 1995, became effective in 1998 and protects individuals' privacy and personal data use. The Directive recognizes the European view that privacy is a fundamental human right and establishes a general comprehensive legal framework that is aimed at protecting individuals and promoting individual choice regarding the processing of personal data. The Directive imposes an onerous set of requirements on any person that collects or processes data pertaining to individuals in their personal or professional capacity. It is based on a set of data protection principles, which include the legitimate basis, purpose limitation, data quality, proportionality and transparency principles, data security and confidentiality, data subjects' rights of access, rectification, deletion and objection, restrictions on onwards transfers, additional protection where special categories of data and direct marketing are involved and a prohibition on automated individual decisions. The Directive applies to all sectors of industry, from financial institutions to consumer goods companies, and from list brokers to any employer. The Directive's key provisions impose severe restrictions on personal data processing, grant individual rights to "data subjects" and set forth specific procedural obligations including notification to national authorities. This was followed in 1997 by a more specific directive for the telecom sector (97/66/EC), which was replaced in mid-2002 by the European institutions to adapt it to new technologies and business practices (2002/58/EC). The Directive has been supplemented by additiona EU-U.S. Safe Harbor Agreement - CORRECT ANSWER >>> A former agreement between the EU and U.S. under which data may be exported to the U.S. in compliance with the EU Directive on Data Protection. Within a safe harbor agreement a data processor must abide by seven principles that and self-certify the compliance with to the Department of Commerce. These principles are notice, choice, consent to onward transfer, security, integrity, access, and enforcement. Certifying oneself as abiding by the Safe Harbor Framework without full compliance may be considered a deceptive trade practice under section 5 of the FTC Act. In 2015, the European Court of Justice invalidated Safe Harbor. The EU and the U.S. have a new agreement called the EU-U.S. Privacy Shield. European Commission - CORRECT ANSWER >>> The executive body of the European Union. Its main function is to implement the EU's decisions and policies, along with other functions. It is also responsible for making adequacy determinations with regard to data transfers to thirdparty countries.
European Economic Community - CORRECT ANSWER >>> Created by the Treaty of Rome, the EEC was a predecessor to the European Union that promoted a single economic market across Europe. European Parliament - CORRECT ANSWER >>> The only EU institution whose members are directly elected by member states, Parliament has four responsibilities—legislative development, supervisory oversight of other institutions, democratic representation and budget development. European Union - CORRECT ANSWER >>> Replaced the EEC, created by the Treaty of Rome, the EEC promoted a single economic market across Europe. The EU is comprised of 28 member states including Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom. Candidates include the Former Yugoslav Republic of Macedonia, Iceland, Montenegro, Serbia and Turkey. Factortame - CORRECT ANSWER >>> A 1989 case brought before the European Court of Justice which established the precedence of EU law over national laws of member states in areas where the EU has competence. Fair Credit Reporting Act, The - CORRECT ANSWER >>> One of the oldest U.S. federal privacy laws still in force today. It was enacted in 1970 to mandate accurate and relevant data collection, give consumers the ability access and correct their information, and limit the use of consumer reports to permissible purposes, such as employment and extension of credit or insurance. Fairness - CORRECT ANSWER >>> One of two requirements established by the EU Data Protection Directive for the processing of personal data. In order to be considered fair, the data controller must provide specific information to the data subject prior to processing.
Federal Trade Commission - CORRECT ANSWER >>> The United States' primary consumer protection agency, the FTC collects complaints about companies, business practices and identity theft under the FTC Act and other laws that they enforce or administer. Importantly, the FTC brings actions under Section 5 of the FTC Act, which prohibits unfair and deceptive trade practices. Four Classes of Privacy - CORRECT ANSWER >>> Four main areas of privacy are of particular interest with regard to data protection and privacy laws and practices: information privacy, bodily privacy, territorial privacy, and communications privacy. Freely-Given Consent - CORRECT ANSWER >>> Consent that is given when the data subject has a genuine choice and there is no risk of coercion, deception, or intimidation if the data subject does not consent. Gaskin v. United Kingdom - CORRECT ANSWER >>> A court case in which it was decided the restriction of an applicant's access to their file was contrary to article 8 of the European Convention on Human Rights. GET Method - CORRECT ANSWER >>> The GET and POST HTML method attributes specify how form data is sent to a web page. The GET method appends the form data to the URL in name/value pairs allowing passwords and other sensitive information collected in a form to be visible in the browser's address bar, and is thus less secure than the POST method. Global Privacy Enforcement Network - CORRECT ANSWER >>> Aims to promote cross-border information sharing as well as investigation and enforcement cooperation among privacy authorities around the world. Another cross-border enforcement cooperation effort is the AsiaPacific Economic Cooperation
significant restrictions on such transfers. The EU requires that the receiving jurisdiction be judged to have "adequate" data protection practices. Internet Service Provider - CORRECT ANSWER >>> A company that provides Internet access to homes and businesses through modem dial-up, DSL, cable modem broadband, dedicated T1/T lines or wireless connections. ISO 27002 - CORRECT ANSWER >>> Code of practice for information security with hundreds of potential controls and control mechanisms. The standard is intended to provide a guide for the development of "organizational security standards and effective security management practices and to help build confidence in inter-organizational activities". Law Enforcement Authority - CORRECT ANSWER >>> A body sanctioned by local, regional or national governments to enforce laws and apprehend those who break them. In Europe, public law enforcement authorities are governed by strict rules of criminal procedure designed to protect the fundamental human right to privacy enshrined in Article 8 of the European Convention on Human Rights (ECHR). Lawfulness - CORRECT ANSWER >>> According to the EU Data Protection Directive, processing of personal data must meet two specific requirements; fairness and lawfulness. Lawfulness suggests a community-wide set of norms enforceable by the intervention of the state. In order to be lawful, processing must meet all legal requirements. Layered Notice - CORRECT ANSWER >>> A privacy notice designed to respond to problems with a excessively long notices. A short notice—the top layer—provides a user with the key elements of the privacy notice. The full notice—the bottom layer—covers all the intricacies in full. In Europe, the Article 29 Working Party recommends three layers: a short notice, a condensed notice and a full notice.
Layered Security Policy - CORRECT ANSWER >>> A layered approach defines three levels of security policies. The top layer is a high-level document containing the controller's policy statement. The next layer is a more detailed document that sets out the controls that will be implemented to achieve the policy statements. The third layer is the most detailed and contains the operating procedures, which explain how the policy statements will be achieved in practice. Legitimate Interests of Controller - CORRECT ANSWER >>> One of several legitimate processing criteria required by the EU Data Protection Directive. This rather broad criteria states "Processing is necessary for the purposes of the legitimate interests pursued by the controller or by the third party or parties to whom the data is disclosed, except where such interests are overridden by the interests for fundamental rights and freedoms of the data subject, which require protection under Article 1(1)." Legitimate Processing Criteria - CORRECT ANSWER >>> To process data in compliance with EU data protection law, a controller must be able to base the processing activity on at least one legitimate criteria derived from the Data Protection Directive. These criteria are consent, necessity, contract requirement, legal obligation, protection of data subject, public interest and legitimate interests of the controller. Lindqvist Judgement - CORRECT ANSWER >>> A case in which the European Court of Justice ruled that a woman who identified and included information about fellow church volunteers on her website was in breach of the Data Protection Directive 95/46/EC. The ECJ held that the creation of a personal website was not a personal activity allowing the woman to be exempted from the data protection rules. Location-Based Service - CORRECT ANSWER >>> Services that utilize information about location to deliver, in various contexts, a wide array of applications and services, including social networking, gaming and entertainment. Such services typically rely upon GPS, RFID or similar technologies in which geolocation is used to identify the real-world geographic location of an object, such as a cell phone or an Internet-connected computer terminal.
risks as loss or unauthorized access, destruction, use, modification or disclosure of data. (6)The Openness Principle. There should be a general policy of openness about developments, practices and policies with respect to personal data. Means should be readily available of establishing the existence and nature of personal data, and the main purposes of their use, as well as the identity and usual residence of the data controller. (7)The Individual Participation Principle. An individual should have the right: a) to obtain from a data controller, or otherwise, confirmation of whether or not the data controller has data relating to him; b) to have data relating to him comm Omnibus Laws - CORRECT ANSWER >>> Laws in which the government has defined requirements throughout the economy including public-sector, private-sector and health-sector. Online Behavioral Advertising - CORRECT ANSWER >>> Websites or online advertising services that engage in the tracking or analysis of search terms, browser or user profiles, preferences, demographics, online activity, offline activity, location data, etc., and offer advertising based on that tracking. Openness - CORRECT ANSWER >>> A fair information practices principle, it is the principle that there should be a general policy of openness about developments, practices and policies with respect to personal data. Means should be readily available to establish the existence and nature of personal data, and the main purposes of their use, as well as the identity and usual residence of the data controller. Opinion 1/2003 - CORRECT ANSWER >>> An Article 29 Working Party opinion on the storage of traffic data for billing purposes that recommends that telecommunications service providers ordinarily store personal traffic data for a maximum period of three to six months, except for disputed cases, where data may be processed for longer. Opinion 1/2008 - CORRECT ANSWER >>> An Article 29 Working Party opinion that advises search engine providers to keep data for a maximum period of six months and to provide justifications for such retention periods. Therefore, when search engine providers intend to keep data for
longer than six months, the Article 29 Working Party recommends they demonstrate comprehensively that it is strictly necessary for the service. Opinion 1/2010 - CORRECT ANSWER >>> A 2010 Article 29 Working Party opinion on the concepts of "controller" and "processor" that provides assistance to organisations operating in the European Union when engaging service providers and when acting as a service provider. The distinction between controller and processor is crucial as it determines who is responsible for compliance with data protection law and dealing with data subjects' rights, the applicable law and the enforcement actions of data protection authorities. Opinion 2/2010 - CORRECT ANSWER >>> An Article 29 Working Party on online behavioural advertising adopted on 22 June 2010, the Article 29 Working Party states that Article 6(1)(e) requires data to be deleted when it is no longer necessary for the purpose for which the data was collected. Compliance with this principle requires limiting the storage of information. Accordingly, it states that companies must specify and respect express timeframes under which data will be retained. Pursuant to this, information about users' behaviour has to be eliminated if it is no longer needed for the development of a profile. Opinion 4/2007 - CORRECT ANSWER >>> An Article 29 Working Group opinion the concept of personal data, the European Union aimed for a 'wide notion' of the concept of personal data so as to include all information concerning an identifiable individual. On that basis, the concept embraces considerable amounts of information, even where the link between such information and an identifiable individual is tenuous. Opt-In - CORRECT ANSWER >>> One of two central concepts of choice. It means an individual makes an active affirmative indication of choice; i.e., checking a box signaling a desire to share his or her information with third parties.
