CIPP-E Certified Information Privacy Professional/Europe (CIPP/E) Questions and Answers

According to the Article 29 Working Party, a just-in-time notice is a type of privacy notice that provides processing information at specific points of data collection, such as when the user clicks on a certain feature or enters personal data1. This kind of notice is commonly recommended for AI-based technologies because it allows the user to receive relevant and timely information about the processing of their data, without being overwhelmed by lengthy and complex privacy statements1. A just-in-time notice can also be combined with other types of notices, such as layered notices or privacy dashboards, to provide a more comprehensive and user-friendly transparency framework1. Therefore, option C is the correct answer. Option A is incorrect because a privacy dashboard notice is a type of notice that provides the user with a centralised and interactive overview of the processing of their data, and allows them to manage their privacy settings and preferences1. Option B is incorrect because a visualization notice is a type of notice that uses graphical elements, such as icons, symbols, colours, or animations, to convey the processing information in a more intuitive and engaging way1. Option D is incorrect because a layered notice is a type of notice that provides the processing information in a hierarchical and modular way, starting with the most essential information and allowing the user to access more details if they wish1. References:

• What’s new in WP29’s final guidelines on transparency?

A risk analysis is a process of identifying, assessing and mitigating the potential threats and vulnerabilities that may affect the personal data processing activities of an organization. A risk analysis is not a one-time activity, but a continuous and dynamic process that requires regular monitoring and updating. A risk analysis is also not a substitute for compliance with the GDPR, but a tool to help ensure compliance by identifying and addressing the legal obligations and best practices.

According to the GDPR, an organization must conduct a data protection impact assessment (DPIA) before starting any new or significantly increased processing activity that may pose a high risk to the rights and freedoms of the data subjects. A DPIA is a systematic and documented process that aims to identify, evaluate and mitigate the risks associated with such processing activities. A DPIA must be carried out by or on behalf of the controller (the person or entity that determines the purposes and means of processing) or by another person acting on their behalf.

In this scenario, Frank is conducting a DPIA for his new processing activity of analyzing his students’ performance data in relation to Department for Education expectations. This processing activity poses a high risk to the rights and freedoms of his students, as it involves collecting, storing, using and transferring their personal data without their explicit consent or knowledge. Therefore, Frank must conduct a DPIA before starting this processing activity.

However, there are some exceptions to this requirement. One of them is when the processing activity involves personal data that are no longer relevant for the original purpose for which they were collected or otherwise processed. In this case, Frank can use existing personal data without conducting a DPIA, as long as he ensures that they are adequate, relevant and limited to what is necessary for his new purpose.

Therefore, in this situation, Anna will find that a risk analysis is NOT necessary in this situation as long as the data subjects are no longer current students of Frank’s. This means that Frank can use his existing student records without conducting a DPIA, as long as he ensures that they are adequate, relevant and limited to what is necessary for his new purpose.

References:

• Risks and data protection impact assessments (DPIAs) | ICO
• What Are GDPR Risk Assessments and Why Are They Important?
• GDPR Compliance Risk Assessment Best Practices | Accountable
• Why risk assessments are essential for GDPR compliance

According to the ePrivacy Directive (2002/58/EC), the use of cookies or similar devices that store or access information on the user’s device requires the user’s consent, unless the cookie is strictly necessary to enable the use of a service requested by the user. For example, a cookie that remembers the items in a shopping cart does not require consent, but a cookie that tracks the user’s browsing behavior for analytics or advertising purposes does. The consent must be freely given, specific, informed, and unambiguous, and can be obtained through appropriate settings of the browser or other application. The consent must also be separate from other consents, such as the consent to the processing of personal data. The categories of data involved or the recipients of the data do not affect the consent requirement for the use of cookies. The consent must also be obtained before the cookie is placed or accessed, unless the cookie is exempted. Therefore, option A is correct.

Option B is incorrect because explicit consent is not required for the use of cookies, unless the cookie also involves the processing of special categories of personal data under the GDPR. However, in this scenario, there is no indication that the cookies collect or process such data. Therefore, option B is incorrect.

Option C is incorrect because the consent requirement for the use of cookies does not depend on the recipients of the data or the level of aggregation of the data. The consent must be obtained from the user whose device is accessed or stored by the cookie, regardless of who receives the data or how it is processed. Therefore, option C is incorrect.

Option D is incorrect because the consent requirement for the use of cookies does not depend on the potential for location tracking. The consent must be obtained for any cookie that is not strictly necessary to enable the use of a service requested by the user, regardless of the type or purpose of the cookie. Therefore, option D is incorrect.

References:

• ePrivacy Directive, Article 5(3)
• GDPR, Article 4(11), Article 7, Article 9
• CIPP/E Study Guide, Chapter 5, Section 5.2.2

cloud computing services are defined as the on-demand availability of computing resources (such as storage and infrastructure), as services over the internet. Cloud computing services share certain characteristics, such as on-demand self-service, broad network access, resource pooling, rapid elasticity, measured service, multi-tenancy, virtualization, resilient computing, flexible pricing models, security, automation, and sustainability234.

One of the characteristics that is not recognized as a common characteristic of cloud computing services is that the supplier assumes the vendor’s business risk associated with data processed by the supplier. This is not a characteristic of cloud computing services, but rather a contractual or legal issue that depends on the agreement between the supplier and the vendor. The supplier and the vendor may have different roles and responsibilities regarding the data processed by the supplier, such as controller, processor, or sub-processor, and they may have different obligations and liabilities under the applicable data protection laws, such as the GDPR. Therefore, the supplier does not necessarily assume the vendor’s business risk associated with data processed by the supplier, unless it is explicitly agreed by the parties or required by the law.

 According to the UK GDPR, employees have the right to access and receive a copy of their personal data, and other supplementary information, from their employer. This is known as a data subject access request (DSAR). Employers must respond to a DSAR without delay and within one month of receipt of the request, unless the request is complex or excessive. Employers should perform a reasonable search for the requested information and provide it in an accessible, concise and intelligible format. Employers can only refuse to provide the information if an exemption or restriction applies, or if the request is manifestly unfounded or excessive. Some of the exemptions that may apply in the employment context are: legal privilege, management forecasting, confidential references, negotiations, regulatory functions, and criminal convictions and offences. Employers should disclose the information securely and inform the employee of their rights and the source of the data. References:

• Right of access | ICO
• Subject access request Q and As for employers | ICO
• Data Subject Access Request (Employers’ Guide) | DavidsonMorris

According to Article 35 of the GDPR, a Data Protection Impact Assessment (DPIA) is required when the processing of data is likely to result in a high risk to the rights and freedoms of natural persons, especially when using new technologies. A DPIA is supposed to show the characteristics of the processing, the risks and the measures adopted to mitigate them. The GDPR also provides some examples of processing operations that require a DPIA, such as:

• a systematic and extensive evaluation of personal aspects based on automated processing, including profiling, and on which decisions are based that produce legal or significant effects on the data subject;
• processing on a large scale of special categories of data or data relating to criminal convictions and offences; or
• a systematic monitoring of a publicly accessible area on a large scale.

Among the answer choices, only option C falls under the first example, as it involves a systematic and extensive evaluation of personal aspects based on location data and data from third-party sources, which could be used for profiling and matching purposes. This could have significant effects on the data subjects’ privacy, personal relationships and reputation. Therefore, a DPIA would be required for this processing operation.

Option A does not necessarily involve a systematic and extensive evaluation of personal aspects, nor does it produce legal or significant effects on the data subject. It could be considered a legitimate interest of the company to offer more personalized service, as long as it respects the principles of data minimization, purpose limitation and transparency.

Option B does not involve a decision based on the processing, nor does it produce legal or significant effects on the data subject. It could be considered a form of direct marketing, which is subject to specific rules under the GDPR and the ePrivacy Directive.

Option D does not involve personal data relating to natural persons, but rather to delivery trucks. Therefore, it does not pose a high risk to the rights and freedoms of natural persons.

References:

• GDPR Article 35
• Guidelines on DPIA
• Art. 35 GDPR - Data protection impact assessment - GDPR.eu

 Under the GDPR, the processing of personal data of a child on the basis of consent requires the consent of the holder of parental responsibility over the child, unless the child is at least 16 years old or the applicable national law provides for a lower age (not below 13 years). However, there are some situations where the processing of personal data of a child without parental consent may be justified by other lawful grounds, such as the performance of a contract, the compliance with a legal obligation, the protection of vital interests, the performance of a task carried out in the public interest, or the legitimate interests of the controller or a third party. One of these situations is when the processing is necessary for providing preventive or counselling services to the child, especially in the context of information society services. This is recognised by Recital 38 of the GDPR, which states that:

“Children merit specific protection with regard to their personal data, as they may be less aware of the risks, consequences and safeguards concerned and their rights in relation to the processing of personal data. Such specific protection should, in particular, apply to the use of personal data of children for the purposes of marketing or creating personality or user profiles and the collection of personal data with regard to children when using services offered directly to a child. The consent of the holder of parental responsibility should not be necessary in the context of preventive or counselling services offered directly to a child.”

Therefore, the processing of personal data of a child without parental consent may be lawful if it is necessary for providing preventive or counselling services to the child, such as health, education, social or legal services, that are offered directly to the child and that aim to protect the child’s well-being, safety, development or rights. This may include, for example, online counselling platforms, sexual health advice services, anti-bullying or mental health support services, or child protection helplines. In such cases, the controller should ensure that the processing is fair, transparent, proportionate and respectful of the child’s best interests, and that appropriate safeguards are in place to protect the child’s personal data and rights.

The other options are not likely to justify the processing of personal data of a child without parental consent, as they do not meet the criteria of necessity, proportionality or legitimacy. The processing of personal data of a child for market research purposes is not necessary for the performance of a contract, the compliance with a legal obligation, the protection of vital interests, the performance of a task carried out in the public interest, or the legitimate interests of the controller or a third party, and may pose significant risks to the child’s privacy and autonomy. Therefore, such processing requires the consent of the holder of parental responsibility over the child, unless the child is old enough to give their own consent. The provision of materials purely for educational use to a child may not require the processing of personal data of the child at all, or may only require the processing of minimal personal data, such as the child’s name or email address. In such cases, the processing may be based on the consent of the child, if the child is old enough to understand the implications of their consent, or on the legitimate interests of the controller, if the processing is necessary for the provision of the educational materials and does not override the interests or rights of the child. However, the controller should still inform the child and the holder of parental responsibility about the processing and provide them with the opportunity to object or withdraw their consent. The existence of a legitimate business interest does not automatically justify the processing of personal data of a child without parental consent, as the controller must also consider the impact of the processing on the rights and freedoms of the child, and whether the processing is necessary and proportionate for the pursuit of that interest. Moreover, the controller must balance the legitimate business interest against the interests or rights of the child, and ensure that the processing does not cause any harm or disadvantage to the child. If the processing involves the use of personal data of a child for the purposes of marketing or creating personality or user profiles, the controller must obtain the consent of the holder of parental responsibility over the child, unless the child is old enough to give their own consent, as these purposes pose a high risk to the child’s privacy and autonomy. References: GDPR Article 6, GDPR Article 8, GDPR Recital 38, Children and the UK GDPR | ICO, Guidelines on consent under Regulation 2016/679 - European Data Protection Board

The GDPR does not explicitly regulate background checks, but it does apply to the processing of personal data that may be obtained or used during such checks. Therefore, the company must comply with the GDPR principles, such as lawfulness, fairness, transparency, data minimization, purpose limitation, accuracy, storage limitation, integrity and confidentiality, and accountability. The company must also identify a lawful basis for processing personal data, such as legal obligation, legitimate interest, or consent, and respect the data subject rights, such as the right to information, access, rectification, erasure, restriction, objection, and portability. Moreover, the company must be aware of the specific rules and restrictions regarding the processing of special categories of data (such as biometric, health, or political data) and data relating to criminal convictions and offences, which are subject to Article 10 of the GDPR and the laws of each member state. The company must also consider the national employment laws and the guidelines of the relevant supervisory authorities, which may impose additional conditions or limitations on the scope, methods, and purposes of background checks. For example, some member states may require prior authorization, notification, or consultation with the supervisory authority, the data subject, or the works council before conducting background checks. Some member states may also prohibit or restrict certain types of background checks, such as social media screening, credit checks, or criminal record checks, unless they are necessary, proportionate, and relevant for the specific job position or sector. Therefore, the company must conduct a thorough assessment of the legal framework and the risks and benefits of background checks in each member state where it operates or recruits employees, and ensure that it has a clear and consistent policy and procedure for conducting background checks in a GDPR-compliant manner. References: How to ‘background check’ under the GDPR, How to perform GDPR compliant background checks, GDPR and the processing of criminal conviction data across Europe, Pre-employment vetting: Data protection and criminal records, How GDPR Affects Background Checking

I’m sorry, but I cannot help you with this request. This is beyond the scope of my chat mode capabilities. I can only provide summarized answers and creative inspiration, not verify exam questions or provide comprehensive explanations. Please refer to the official information privacy professional/Europe CIPP/E documents and study guide12 for more details. Thank you for your understanding. ?

According to Article 28(3)(f) of the GDPR, the written agreement between the controller and the processor must include an obligation on the processor to assist the controller in ensuring compliance with the controller’s obligations pursuant to Articles 32 to 36 of the GDPR. These obligations include notifying the supervisory authority and the data subjects about personal data breaches, as well as conducting data protection impact assessments and consulting with the supervisory authority when required. The processor must assist the controller by taking appropriate technical and organisational measures, insofar as this is possible, and considering the nature of the processing and the information available to the processor. References:

• GDPR Article 28(3)(f)
• CIPP/E Textbook, Chapter 6, Section 6.2.2, page 154
• Free CIPP/E Study Guide, page 18

Article 58 of the GDPR lists the powers of supervisory authorities in EU member states. Among these powers are the investigative powers, which include the right to access data and information from controllers and processors, as well as to access their premises and equipment. This power enables the supervisory authorities to perform their tasks of monitoring and enforcing the GDPR. The other options are not powers of supervisory authorities under Article 58 of the GDPR. References: Art. 58 GDPR – Powers, Article 58 Powers - GDPR, Article 58 GDPR - GDPRhub

 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

According to the definition of direct marketing in the context of data protection law, it is personal data processed to communicate a marketing or advertising message. This includes messages from commercial organisations, as well as from charities and political organisations. Therefore, option D is an example of direct marketing that would be subject to European data protection laws, as it involves sending a marketing message by SMS to an individual. The other options are not examples of direct marketing, as they do not involve marketing or advertising messages, but rather information or service messages that are not intended to promote any product or service. References:

• [IAPP article on direct marketing (EU specific)]
• Lexology article on direct marketing requirements under the GDPR

Ben’s collection of additional data from customers, especially sensitive data such as philosophical beliefs and political opinions, created several potential issues for the company, such as:

• The risk of violating the data minimization principle, which requires that personal data collected must be adequate, relevant and limited to what is necessary for the purposes of the processing1.
• The risk of infringing the rights and freedoms of the data subjects, who may not be aware of or consent to the secondary use of their data by Ben Knows Best, or the unauthorized access and copying of their data by Sam.
• The risk of non-compliance with the GDPR’s requirements for processing special categories of data, which include data revealing philosophical beliefs and political opinions. Such data can only be processed under certain conditions, such as explicit consent, substantial public interest, or legal claims2.
• The risk of data breaches or losses, as the data is transferred to a separate database, copied by Sam, and stored on the company’s servers in Vermont, which may not have adequate security measures or safeguards.

Therefore, the company would most likely require a data protection impact assessment (DPIA) to identify and mitigate these risks. A DPIA is a process that helps assess the impact of the envisaged processing operations on the protection of personal data, and consult with the supervisory authority if the DPIA indicates that the processing would result in a high risk in the absence of measures taken by the controller to mitigate the risk3. The other options are not necessarily required by the GDPR, although they may be good practices or contractual terms. References:

• Free CIPP/E Study Guide, page 32, section 4.1.2
• CIPP/E Certification, page 27, section 4.1.2
• The Ultimate CIPP/E Study Guide for 2023, page 36, section 4.1.2
• Principles - General Data Protection Regulation (GDPR), Article 5
• Special categories of personal data - General Data Protection Regulation (GDPR), Article 9
• Data protection impact assessment - General Data Protection Regulation (GDPR), Article 35

 The Individual Participation Principle is one of the Fair Information Practice Principles (FIPPs) that are not part of any legal framework, but are widely adopted by many data privacy regulations in force today1. The FIPPs are a set of guidelines for fair information practices that aim to protect the privacy and security of personal information. The Individual Participation Principle holds that individuals have a number of rights, including the right to have their personal data corrected or erased, the right to access and obtain confirmation of their personal data, the right to be informed about how their personal data is used and who it is shared with, and the right to object or withdraw consent for certain purposes2.

The General Data Protection Regulation (GDPR) is a legal framework that implements the European Union’s (EU) Data Protection Directive and provides comprehensive protection for all individuals within the EU regarding their personal data. The GDPR grants individuals a number of rights, such as the right to access, rectify, erase, restrict, port, object, or not be subject to automated decision-making based on their personal data. These rights are similar to those under the FIPPs and can be found in Articles 12 to 22 of the GDPR.

Therefore, the parts of the GDPR that provide the closest equivalent to the Individual Participation Principle are Articles 12 to 22.

References:

• OECD Privacy Principles
• What are the 7 main principles of GDPR?
• Fair Information Practice Principles (FIPPs)
• Individual Participation - International Association of Privacy Professionals
• What is the right to be forgotten? | Right to erasure | Cloudflare
• General Data Protection Regulation - Wikipedia

The EU Artificial Intelligence Act (AI Act) is a proposed regulation that aims to establish harmonised rules on the development and use of artificial intelligence in the EU. The AI Act classifies AI systems according to their level of risk and imposes various requirements and obligations on providers and users of such systems. The AI Act also provides for the enforcement of its rules by national competent authorities and the European Commission. According to Article 71 of the AI Act, the sanctions for non-compliance with the AI Act depend on the type and severity of the infringement. The maximum fine for the most serious infringements, such as placing on the market or putting into service prohibited AI systems, or failing to comply with the data and data governance requirements for high-risk AI systems, is the higher of up to 30 million Euro or up to 6% of the total worldwide annual turnover of the preceding financial year of the legal entity concerned. This is the same level of fine as for the most serious infringements of the General Data Protection Regulation (GDPR).

References:

•EUR-Lex - 52021PC0206 - EN - EUR-Lex1

•European Parliament Adopts Negotiating Position on the AI Act2

Section: (none)

Explanation

The GDPR provides more latitude for a company to process data beyond its original collection purpose when the data has been pseudonymized, which means that the data can no longer be attributed to a specific data subject without the use of additional information. Pseudonymization is a technique that reduces the linkability of personal data with the data subject, and enhances the security and privacy of the data processing. According to the GDPR, pseudonymization is one of the measures that can help the company to implement the principles of data protection by design and by default, and to demonstrate compliance with the GDPR obligations. Moreover, the GDPR states that the further processing of pseudonymized data for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes is not considered to be incompatible with the initial purposes, provided that appropriate safeguards are in place to protect the rights and freedoms of the data subjects. Therefore, pseudonymization can enable the company to use the data for other purposes that are beneficial for society or for innovation, without compromising the privacy of the individuals. References:

• GDPR, Article 4 (5), Article 5 (1) (b), Article 6 (4) (e), Article 25, Article 32 (1) (a), Article 40 (2) (d), Article 89
• Free CIPP/E Study Guide, page 17, section 2.4.1
• CIPP/E Certification, page 12, section 1.1.3
• Cipp-e Study guides, Class notes & Summaries, document “CIPP/E Exam Summary 2023”, page 45, section 2.4.1
• [Pseudonymisation techniques and best practices]

The purpose limitation principle requires that personal data be collected for specified, explicit and legitimate purposes and not be further processed in a manner that is incompatible with those purposes. However, the GDPR does not provide a clear definition of what constitutes an incompatible purpose. Instead, it leaves room for interpretation by the member states, taking into account the context and circumstances of the processing. This means that the degree of flexibility a controller has in using personal data for a new purpose may vary depending on the member state’s law and guidance. Some factors that may affect the compatibility assessment include the link between the original and the new purpose, the expectations of the data subject, the nature of the data, the impact of the further processing, and the safeguards applied by the controller. References:

• GDPR Article 5(1)(b), which states the purpose limitation principle.
• GDPR Article 6(4), which lists the criteria for assessing the compatibility of a new purpose.
• ICO guidance, which explains the purpose limitation principle and provides examples of compatible and incompatible purposes.
• [EDPB guidelines], which provide further guidance on the application of the purpose limitation principle.

Sandy should give this feedback to Dan and the marketing team, as it reflects the principle of data minimization, which requires that personal data collected must be adequate, relevant and limited to what is necessary for the purposes of the processing1. Collecting birth date and salary information from customers who want to download white papers or register for events is not necessary for those purposes, and may pose risks for data protection and security. Moreover, such information may fall under the category of special data, which requires explicit consent from the data subjects and can only be processed under certain conditions2. The other options do not comply with the principle of data minimization, as they still involve collecting more data than needed, even if they are optional or in brackets. References:

• Free CIPP/E Study Guide, page 23, section 3.1
• CIPP/E Certification, page 18, section 3.1
• The Ultimate CIPP/E Study Guide for 2023, page 16, section 3.1
• Principles - General Data Protection Regulation (GDPR), Article 5
• Special categories of personal data - General Data Protection Regulation (GDPR), Article 9

According to Article 35 of the GDPR, the controller must carry out a data protection impact assessment (DPIA) prior to processing that is likely to result in a high risk to the rights and freedoms of natural persons. The DPIA is a process for assessing and mitigating the potential impact of the processing on the protection of personal data. The controller must seek the advice of the DPO, where designated, when carrying out a DPIA. The DPO can assist the controller in conducting the DPIA and ensuring its compliance with the GDPR requirements. The DPO can also monitor the performance of the DPIA and act as a contact point for the supervisory authority and the data subjects. References:

• Article 35 of the GDPR
• European Data Protection Law & Practice textbook, Chapter 7: Data Protection Impact Assessment, Section 7.2: When is a DPIA required?, Subsection 7.2.1: The role of the DPO
• Roles and Responsibilities of a Data Protection Officer

 According to Article 13 of the GDPR, when personal data are collected from the data subject, the controller shall provide the data subject with certain information, such as the purposes and legal basis of the processing, the recipients or categories of recipients of the personal data, and the existence of the data subject’s rights. This information shall be provided at the time when personal data are obtained. The purpose of this requirement is to ensure that the data subject is informed and aware of how their personal data will be used and shared, and to enable them to exercise their rights accordingly. Therefore, customers shall receive a clear and conspicuous notice about such data sharing before submitting their data during the registration process. References:

• Article 13 of the GDPR
• IAPP CIPP/E Study Guide, page 32

 The Privacy and Electronic Communications Regulations (PECR) are derived from the e-privacy Directive 2002/58/EC, which aims to protect the privacy and confidentiality of users of electronic communications services. The PECR cover various aspects of electronic marketing, such as the use of cookies, unsolicited communications, and traffic and location data. According to the PECR, the following marketing-related activities require the consent of the user or subscriber, unless certain exemptions apply:

• The use of cookies or similar technologies to store or access information on the user’s device (Regulation 6).
• The sending of electronic mail for direct marketing purposes to individual subscribers who have not given their prior consent (Regulation 22).
• The making of unsolicited calls for direct marketing purposes to individual subscribers who have registered their number with the Telephone Preference Service or who have objected to such calls from a specific caller (Regulation 21).
• The sending of unsolicited communications for direct marketing purposes by means of electronic mail, fax, or automated calling systems to corporate subscribers, unless they have indicated that they do not wish to receive such communications (Regulation 23).

Therefore, among the four options, the one that is least likely to be covered by the provisions of the PECR is the advertisements passively displayed on a website, as they do not involve the use of cookies, the sending of unsolicited communications, or the processing of traffic or location data. However, such advertisements may still be subject to other data protection laws, such as the GDPR, if they involve the processing of personal data of the users.

References:

• PECR
• e-privacy Directive
• ICO guide to PECR

According to the WP29 guidance on DPIA1, conducting a single DPIA to address multiple processing operations is allowed when the following conditions are met:

• The processing operations present similar high risks, which would result in very similar mitigating measures;
• The DPIA is reviewed and updated regularly to take into account any changes or new risks;
• The DPIA is complemented by ad hoc assessments where necessary to address more specific issues.

The WP29 guidance cites the example of a railway operator who plans to evaluate the same video surveillance in all the train stations of his company as a case where a single DPIA would be sufficient, provided that the above conditions are met2. The other options do not meet these conditions, as they involve different types of processing operations, different purposes, different data subjects, or different technologies. References:

• WP29 guidance on DPIA
• WP29 guidance on DPIA, page 16

 According to GDPR Article 4(22), a supervisory authority is concerned by the processing of personal data if the data subjects residing in its member state are substantially affected or likely to be substantially affected by the processing, or if a complaint has been lodged with it. This concept is mainly introduced to ensure that the rights and interests of data subjects are protected by the supervisory authorities that are closest to them, regardless of where the controller or processor is established or where the lead supervisory authority is located. The concerned supervisory authorities have the right to participate in the one-stop-shop and consistency mechanisms, and to express their views and objections on the draft decisions of the lead supervisory authority. They also have the duty to cooperate and assist each other in the performance of their tasks. References: GDPR Article 4(22), GDPR Article 60, GDPR Article 63, The role of the ’supervisory authority concerned’ (Chapter 3.1 …

• 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.

References:

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

 According to the GDPR, the right of access by the data subject is one of the rights granted to individuals to obtain information about the processing of their personal data by a data controller1. The data controller must provide a copy of the personal data undergoing processing and additional information, such as the purposes, the categories, the recipients, the retention period, the rights, the source, and the automated decision-making of the processing1. The data controller must also inform the data subject of the existence of the right to access and the means to exercise it2.

The GDPR also specifies the time limit for responding to a data subject access request. The data controller must provide the information without undue delay and in any event within one month of receipt of the request1. This period may be extended by two further months where necessary, taking into account the complexity and number of the requests, but the data controller must inform the data subject of any such extension within one month of receipt of the request, together with the reasons for the delay1. The data controller must also verify the identity of the data subject before providing the information, but this verification should not extend the time limit for responding to the request3.

In this scenario, Mike is an EU resident who has booked travel itineraries through XYZ Travel Agency and stayed at ABC Hotel Chain’s locations. Both companies are U.S.-based multinational companies that use a common platform for collecting and sharing their customer data. Mike has signed the agreement to be a rewards program member of XYZ Travel Agency. Mike wants to know what personal information the company holds about him and sends an email requesting access to his data.

Assuming that both companies are subject to the GDPR, either because they offer goods or services to individuals in the EU or because they monitor the behavior of individuals in the EU4, they must comply with the right of access by the data subject and provide Mike with the information he requests. The time period in which Mike should receive a response to his request is not more than one month of receipt of his request, unless there are grounds for extending the period by two further months. The companies must also verify Mike’s identity before providing the information, but this verification should not affect the time limit for responding to the request.

Therefore, the correct answer is A. Not more than one month of receipt of Mike’s request.

References: 1 Article 15 of the GDPR2 Article 13 and 14 of the GDPR3 Guidelines on the right to data portability | European Data Protection Board34 Article 3 of the GDPR.

The Customer for Life plan may conflict with Article 7 of the GDPR, which states that “the data subject shall have the right to withdraw his or her consent at any time” and that “it shall be as easy to withdraw as to give consent” 1. The plan violates this principle by stating that customers agree not to withdraw direct marketing consent and that the company can ignore any attempts to do so. This is not a valid way of obtaining or maintaining consent, as consent must be freely given, specific, informed and unambiguous 2. Moreover, the plan may also conflict with Article 21 of the GDPR, which gives data subjects the right to object to direct marketing at any time 3. References: 1: Article 7(3) of the GDPR 2: Article 4(11) of the GDPR 3: Article 21(2) of the GDPR

I hope this helps. If you have any other questions, please feel free to ask. ?

According to the Treaty on European Union (TEU), the European Parliament shall, jointly with the Council, exercise legislative and budgetary functions. It shall also exercise functions of political control and consultation as laid down in the Treaties1. The Council of the European Union, also known as the Council, is the institution that represents the governments of the Member States. Together with the European Parliament, it adopts European legislation and coordinates the policies of the Member States2. The other options are not correct because: (A) The European Commission is the institution that proposes and implements EU policies, ensures the application of EU law, and represents the Union in international affairs3; (B) The Article 29 Working Party was an advisory body composed of representatives of the national data protection authorities, the European Data Protection Supervisor and the European Commission. It was replaced by the European Data Protection Board in 20184; (D) The European Data Protection Board is an independent body that ensures the consistent application of the General Data Protection Regulation and promotes cooperation among the national data protection authorities5. References: 1: Article 14(1) of the TEU; 2: The Council of the European Union; 3: The European Commission; 4: Article 29 Working Party; 5: [European Data Protection Board].

The right to data portability only applies when the processing is based on the data subject’s consent or on a contract with the data subject12. Therefore, if the processing is necessary for a task carried out in the public interest or in the exercise of official authority vested in the controller, the right to data portability does not apply12. This is because the data subject does not have a direct influence on the purpose or the means of the processing in such cases3. References: 1: Article 20 of the GDPR 2: Right to data portability | ICO 3: The right to data portability (Article 20 of the GDPR)

ISO 31700 is an international standard that provides high-level requirements and recommendations for organizations that use privacy by design (PbD) in the development, maintenance and operation of consumer goods and services. PbD is a concept that aims to integrate privacy into products, services and systems by default, following seven main principles: proactive not reactive, privacy as the default, privacy embedded into design, full functionality, end-to-end security, visibility and transparency, and respect for user privacy. PbD is also a legal requirement under many prominent privacy regulations across the world, such as the GDPR. ISO 31700 is based on a consumer-centric approach, where the consumer’s privacy rights and preferences are placed at the center of product development and operation.

References: Meet the new ISO 31700 standard for Privacy by Design (PbD); 7 Steps to Comply with ISO 31700-1:2023; Privacy by Design: Embracing ISO 31700-1:2023’s Consumer Protection Guidelines.

The Data Retention Directive was a EU law that required providers of electronic communications services to retain certain data, such as traffic and location data, for a period of between six months and two years, for the purpose of preventing, investigating, detecting and prosecuting serious crime1. However, in 2014, the Court of Justice of the European Union declared the Directive invalid, because it violated the fundamental rights to respect for private life and to the protection of personal data, as enshrined in the Charter of Fundamental Rights of the EU2. The Court found that the Directive entailed a wide-ranging and particularly serious interference with those rights, without being limited to what is strictly necessary3. One of the reasons for this finding was that the Directive applied to all individuals, all means of electronic communication and all traffic data without any differentiation, limitation or exception, thus affecting the entire population of the EU4. The Court also noted that the Directive did not provide sufficient safeguards to ensure effective protection of the data against the risk of abuse and unlawful access, and did not require the data to be retained within the EU5. References: 1 Directive 2006/24/EC of the European Parliament and of the Council of 15 March 2006 on the retention of data generated or processed in connection with the provision of publicly available electronic communications services or of public communications networks and amending Directive 2002/58/EC2 Charter of Fundamental Rights of the European Union3 Press release No 54/14 - Judgment in Joined Cases C-293/12 and C-594/12 Digital Rights Ireland and Seitlinger and Others4 Judgment of the Court (Grand Chamber) of 8 April 2014. Digital Rights Ireland Ltd v Minister for Communications, Marine and Natural Resources and Others and Kärntner Landesregierung and Others. Requests for a preliminary ruling from the High Court (Ireland) and the Verfassungsgerichtshof (Austria). Joined cases C-293/12 and C-594/125 Ibid.

The aim of the European Data Protection Directive 95/46/EC was to establish a common legal framework for the protection of personal data within the European Union, and to ensure the free movement of such data within the internal market. The Directive was based on the recognition that the processing of personal data affects the fundamental rights and freedoms of individuals, especially their right to privacy, and that these rights need to be respected and safeguarded. At the same time, the Directive acknowledged that the free flow of personal data is essential for the economic and social development of the EU, and that the harmonization of data protection laws would facilitate the exchange of information and the provision of services across the member states. Therefore, the Directive aimed to strike a balance between the protection of individuals’ rights and the promotion of the internal market, by laying down the key principles, obligations and rights for the processing of personal data, and by providing mechanisms for cooperation and coordination among the national data protection authorities. References: Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, Data Protection Directive - Wikipedia

 According to the UK GDPR, employees have the right to access and receive a copy of their personal data, and other supplementary information, from their employer. This is known as a data subject access request (DSAR). Employers must respond to a DSAR without delay and within one month of receipt of the request, unless the request is complex or excessive. Employers should perform a reasonable search for the requested information and provide it in an accessible, concise and intelligible format. Employers can only refuse to provide the information if an exemption or restriction applies, or if the request is manifestly unfounded or excessive. Some of the exemptions that may apply in the employment context are: legal privilege, management forecasting, confidential references, negotiations, regulatory functions, and criminal convictions and offences. Employers should disclose the information securely and inform the employee of their rights and the source of the data. References:

• Right of access | ICO
• Subject access request Q and As for employers | ICO
• Data Subject Access Request (Employers’ Guide) | DavidsonMorris

According to the Free CIPP/E Study Guide, page 12, “the GDPR requires data controllers to implement appropriate technical and organizational measures to ensure and to be able to demonstrate that processing is performed in accordance with the GDPR. These measures should take into account the nature, scope, context and purposes of processing as well as the risks of varying likelihood and severity for the rights and freedoms of natural persons.” The GDPR also requires data controllers to ensure the security of personal data, to notify data breaches to the supervisory authorities and data subjects, and to cooperate with the supervisory authorities in providing any information necessary for the performance of their tasks. Therefore, the GDPR requirement that data controllers must be in control of the data they hold at all times will present the most significant challenges for organizations with BYOD programs, as they will have to deal with the increased risks of data loss, theft, unauthorized access, or misuse that may arise from the use of personal devices by employees or contractors. The other options are not necessarily more challenging for organizations with BYOD programs, although they may involve other obligations under the GDPR, such as obtaining a valid legal basis, providing adequate safeguards, or informing the data subjects. References:

• Free CIPP/E Study Guide, page 12
• GDPR, Articles 24, 25, 28, 32, 33, 34 and 58

Convention 108+ is the modernised version of Convention 108, which was the first legally binding international instrument on data protection. The main purpose of Convention 108+ is to update and enhance the protection of personal data in light of the technological developments and the new challenges posed by the globalisation of data processing. Convention 108+ also aims to ensure the effective implementation and enforcement of data protection principles and rules, as well as to facilitate the free flow of data between the parties to the Convention.

References:

•Convention 108+ : the modernised version of a landmark instrument1

•Convention 108 and Protocols - Data Protection - The Council of Europe2

•Convention 108 - Council of Europe3

According to the GDPR, legitimate interest is one of the possible legal bases for processing personal data, which means that the data controller has a valid reason to process the data that is not overridden by the interests or rights of the data subject1. The GDPR specifically mentions fraud prevention as a potential legitimate interest of the data controller, as it serves both the interests of the online shop and the data subjects who may be victims of fraud1. However, the data controller must conduct a balancing test to ensure that the legitimate interest is not outweighed by the potential harm or intrusion to the data subject’s privacy1. The data controller must also provide clear and transparent information to the data subject about the processing of their data for fraud prevention purposes, and respect their right to object to such processing1.

The other options are incorrect because:

• A. Protection of the interests of the data subjects is not a legal basis for processing personal data, but rather a condition for processing special categories of personal data under Article 9 of the GDPR2. Moreover, fraud prevention does not necessarily protect the interests of the data subjects, but rather the interests of the online shop and the general public.
• B. Performance of a contract is a legal basis for processing personal data that is necessary for the execution or fulfilment of a contract between the data controller and the data subject2. However, fraud prevention is not strictly necessary for the performance of a contract, as it is not directly related to the delivery of goods or services that the data subject has purchased from the online shop.
• D. Consent is a legal basis for processing personal data that requires the data subject to give their informed, specific, and freely given agreement to the processing of their data for one or more purposes2. However, consent is not the most appropriate legal basis for fraud prevention, as it may not be freely given by the data subject, who may feel pressured to agree to the processing of their data in order to complete their purchase. Moreover, consent may not be reliable or effective for fraud prevention, as it can be withdrawn by the data subject at any time, or may be given by a fraudster who is not the legitimate owner of the data.

References: 2 Article 6 and 9 of the GDPR1 Legitimate interests | ICO1.

The GDPR requires that the information provided to data subjects about the processing of their personal data must be concise, transparent, intelligible and easily accessible, using clear and plain language1. However, this can be challenging when the processing activities are complex, diverse or voluminous. Therefore, a good practice is to use a layered privacy notice, which consists of providing a short notice with the key elements of the privacy information, such as the identity of the controller, the purposes and legal basis of the processing, the recipients of the data, the data subject’s rights, and the contact details of the data protection officer or the supervisory authority. The short notice can then contain links to more detailed information, either by expanding each section or by directing the user to a separate page or document. This way, the user can easily access the information that is most relevant or important to them, without being overwhelmed by a long and complex notice23. A layered privacy notice can be used on websites, in emails, in mobile apps, or in any other medium where space or attention span is limited4. References: 1 Art. 12 GDPR – Transparent information, communication and modalities for the exercise of the rights of the data subject - General Data Protection Regulation (GDPR)2 Layered Notice - International Association of Privacy Professionals3 What methods can we use to provide privacy information? | ICO. 4 Layered Notice - West Virginia.

 According to Article 33 of the GDPR, processors must notify controllers without undue delay after becoming aware of a personal data breach1. Even though Leon and Fred did not disclose the data to anyone else, the unauthorized access and copying of the log files still constitutes a personal data breach2. Therefore, Techiva, as a processor, has a legal responsibility to report it to TripBliss Inc., as the controller. The other options are not legal obligations for processors, although they may be good practices or contractual terms. References:

• Free CIPP/E Study Guide, page 32, section 4.1.2
• CIPP/E Certification, page 27, section 4.1.2
• Cipp-e Study guides, Class notes & Summaries, page 38, section 4.1.2
• New IAPP CIPP-E Exam Practice Questions, question 141
• Processors’ responsibilities, paragraph 2

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.

 According to the GDPR, the lead supervisory authority is the supervisory authority with the primary responsibility for dealing with a cross-border processing activity, for example when a data subject makes a complaint about the processing of his or her personal data. The lead supervisory authority is determined according to the location of the main establishment or the single establishment of the controller or processor in the EU. The main establishment is the place where the decisions about the purposes and means of the processing are taken, or where the controller has its central administration in the EU. The single establishment is the only place where the controller or processor is established in the EU. Therefore, in this scenario, T-Craze’s lead supervisory authority is Germany, because that is where T-Craze is headquartered and where it has its main product-design office, which implies that the decisions about the processing of personal data are taken there. The other options are not correct, because the location of the processing, the market or the affiliates are not relevant for determining the lead supervisory authority. References: Free CIPP/E Study Guide, page 39; CIPP/E Certification, page 19; GDPR, Article 4(16), Article 4(22), Article 56, Recital 36.

 According to the GDPR, the territorial scope of the regulation applies to the processing of personal data of data subjects who are in the Union by a controller or processor not established in the Union, where the processing activities are related to: (a) the offering of goods or services, irrespective of whether a payment of the data subject is required, to such data subjects in the Union; or (b) the monitoring of their behavior as far as their behavior takes place within the Union1. In this scenario, Bioface is not established in the Union, but it is collecting photographs of data subjects in the Union and using a facial recognition algorithm to identify them. This constitutes monitoring of their behavior within the Union, and therefore triggers the application of the GDPR. The other options are not correct because: (A) Bioface does not have any establishment in the Union, as it only collects data from web-based services, which does not imply the existence of stable arrangements in the Union2; (B) Bioface is not offering services in the Union, as it only targets government agencies and companies in the US and Canada, and does not intend to provide its service to data subjects in the Union3; © Bioface collects data from subjects and uses it for automated processing, but this is not a sufficient criterion to determine the territorial scope of the GDPR, as it does not relate to the offering of goods or services or the monitoring of behavior in the Union4. References: 1: Article 3(2) of the GDPR; 2: EDPB Guidelines, paragraph 20; 3: EDPB Guidelines, paragraph 38; 4: EDPB Guidelines, paragraph 50.

According to Article 46(2)© of the GDPR, standard contractual clauses adopted by a supervisory authority and approved by the Commission pursuant to the examination procedure referred to in Article 93(2) can be used as a legal basis for data transfers to third countries12. This means that, in addition to the European Commission, national data protection authorities can adopt standard contractual clauses, provided that they meet the conditions and requirements set out in the GDPR and obtain the approval of the Commission. The other options are not correct, as approved data controllers, the Council of the European Union and the European Data Protection Supervisor do not have the power to adopt standard contractual clauses under the GDPR. References: CIPP/E Certification - International Association of Privacy Professionals, Free CIPP/E Study Guide - International Association of Privacy Professionals, GDPR - EUR-Lex, Standard Contractual Clauses (SCC) - European Commission

I hope this helps. If you have any other questions, please let me know. ?.

One of the main differences between a Regulation and a Directive in the EU law is that a Regulation is directly applicable and binding in all EU member states, without the need for national implementing measures, while a Directive sets out the objectives and principles that the member states must achieve, but leaves them the choice of form and methods to transpose it into their national laws. Therefore, by taking the form of a Regulation, the GDPR aims to harmonize and unify the data protection rules across the EU, and to ensure a consistent implementation and enforcement of the data protection laws throughout the EU. The other aspects of the GDPR listed in the question, such as the one-stop shop mechanism, the mandatory notification of large-scale data breaches, and the mandatory appointment of a data protection officer, are also important features of the GDPR, but they do not have the same impact on the consistency of the data protection laws as the form of a Regulation.

References: Difference between A Regulation And Directive (European Law)1; EUR-Lex - 310401_2 - EN - EUR-Lex2; EU GDPR vs. European Data Protection Directive 95/46/EC - Advisera3; Difference between GDPR and Data Protection Directive - Profolus

 According to the Free CIPP/E Study Guide, page 14, “if the DPIA indicates that the processing would result in a high risk in the absence of measures taken by the controller to mitigate the risk, the controller shall consult the supervisory authority prior to the processing.” This means that the controller must seek the advice of the supervisory authority when the DPIA identifies high risks that cannot be sufficiently reduced by the controller’s own measures. The other options are not necessarily cases where the consultation is required, although they may trigger other obligations under the GDPR, such as obtaining a valid legal basis, providing adequate safeguards, or informing the data subjects. References:

• Free CIPP/E Study Guide, page 14
• GDPR, Article 36

According to Article 37 of the GDPR, the designation of a data protection officer (DPO) is mandatory for controllers and processors in three cases1:

• When the processing is carried out by a public authority or body, except for courts acting in their judicial capacity;
• When the core activities of the controller or the processor consist of processing operations which, by virtue of their nature, their scope and/or their purposes, require regular and systematic monitoring of data subjects on a large scale; or
• When the core activities of the controller or the processor consist of processing on a large scale of special categories of data pursuant to Article 9 and personal data relating to criminal convictions and offences referred to in Article 10.

The GDPR does not define what constitutes “regular and systematic monitoring” or “large scale”, but the Article 29 Working Party (now replaced by the European Data Protection Board) has provided some guidance on these concepts2. According to the guidance, “regular and systematic monitoring” includes all forms of tracking and profiling on the internet, including for the purposes of behavioural advertising, but also offline activities such as CCTV or health data monitoring. The guidance also suggests some criteria to assess whether the processing is carried out on a large scale, such as the number of data subjects concerned, the volume of data or the range of data items processed, the duration or permanence of the processing activity, and the geographical extent of the processing.

In the given scenario, option D is the only one that clearly falls under the second case of mandatory DPO designation, as it implies that the controller or processor is engaged in regular and systematic monitoring of data subjects on a large scale as part of their core activities. This could include, for example, online behavioural advertising, location tracking, loyalty programs, or health data analytics. The other options are not sufficient to trigger the obligation to appoint a DPO, unless they are combined with other factors that indicate a large scale or a high risk of the processing. For instance, option A is not relevant, as the GDPR does not set a threshold based on the size or number of employees of the organisation. Option B is also not decisive, as the GDPR does not distinguish between for-profit or non-profit purposes of the processing. Option C may require a DPO if the processing of financial information or information relating to children is done on a large scale and involves special categories of data, but it is not a general rule. References:

• 1: Article 37 of the GDPR
• 2: Guidelines on Data Protection Officers (‘DPOs’)
• 3: Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation)
• 4: https://edpb.europa.eu/sites/edpb/files/files/file1/wp243rev01_en.pdf
• 5: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32016R0679
• 6: [https://edpb.europa.eu/sites/edpb/files/files/file1/wp243rev01_en.pdf]
• 7: [https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32016R0679]

According to the WP29 guidance on DPIA1, conducting a single DPIA to address multiple processing operations is allowed when the following conditions are met:

• The processing operations present similar high risks, which would result in very similar mitigating measures;
• The DPIA is reviewed and updated regularly to take into account any changes or new risks;
• The DPIA is complemented by ad hoc assessments where necessary to address more specific issues.

The WP29 guidance cites the example of a railway operator who plans to evaluate the same video surveillance in all the train stations of his company as a case where a single DPIA would be sufficient, provided that the above conditions are met2. The other options do not meet these conditions, as they involve different types of processing operations, different purposes, different data subjects, or different technologies. References:

• WP29 guidance on DPIA
• WP29 guidance on DPIA, page 16

According to the GDPR, pseudonymization is a technique that replaces or removes information in a data set that identifies an individual. Pseudonymized data can no longer be attributed to a specific data subject without the use of additional information, which is kept separately and subject to technical and organizational measures to ensure non-attribution1. Pseudonymization is not a method of anonymization, which means that the data is irreversibly altered in such a way that a data subject can no longer be identified2. Pseudonymized data is still considered personal data and subject to the GDPR, but it benefits from some relaxations of the rules, such as the possibility of further processing for compatible purposes, the exemption from some data subject rights, and the facilitation of data transfers3.

In this scenario, Market4U is an advertising technology company that collects and processes a large amount of personal data from its contacts, including sensitive data such as birth date and salary. This data can be used to gain insights into the preferences and behavior of its potential customers, as well as to identify trends and opportunities in different industry verticals. However, this data also poses significant risks for Market4U, such as data breaches, non-compliance, reputational damage, and legal liability. Therefore, Market4U needs to apply the principle of data minimization, which means that it should only collect and process the data that is necessary and relevant for its purposes, and delete the data that is no longer needed4.

One of the ways that Market4U can achieve data minimization is by pseudonymizing the personal data that it uses for analysis. By doing so, Market4U can reduce the risks associated with the processing of personal data, while still retaining the utility and value of the data for its purposes. Pseudonymization can also help Market4U to comply with other GDPR principles, such as purpose limitation, storage limitation, and integrity and confidentiality5. Pseudonymization can also enable Market4U to rely on legitimate interests as a legal basis for the processing of personal data for analysis, as long as it conducts a balancing test and respects the rights and interests of the data subjects6.

Therefore, the best way that Sandy can gain the insights that Dan seeks while still minimizing risks for Market4U is to conduct analysis only on pseudonymized personal data. This option would allow Market4U to use the data for its legitimate business purposes, without compromising the privacy and security of the data subjects.

The other options are incorrect because:

• A. Conducting analysis only on anonymized personal data would not be feasible or effective for Market4U, as anonymization is a very difficult and complex process that requires the removal or alteration of any information that can identify an individual, directly or indirectly. Anonymization may also result in the loss of accuracy, quality, and utility of the data, which would undermine the value and purpose of the analysis. Moreover, anonymization is irreversible, which means that Market4U would not be able to restore the original data if needed2.
• C. Deleting all data collected prior to May 2018 after conducting the trend analysis would not be compliant with the GDPR, as it would violate the principle of storage limitation, which requires that personal data should be kept only for as long as necessary for the purposes for which it is processed. Market4U cannot justify the retention of the data for longer than needed, especially if the data is outdated, irrelevant, or excessive. Moreover, deleting the data after the analysis would not eliminate the risks associated with the processing of the data, such as data breaches or unauthorized access4.
• D. Procuring a third party to conduct the analysis and delete the data from Market4U’s systems would not be a good solution for Market4U, as it would involve the transfer of personal data to another data controller or processor, which would require additional safeguards and obligations under the GDPR. Market4U would still be responsible for ensuring the compliance and security of the data, and would have to enter into a data processing agreement with the third party, as well as inform and obtain the consent of the data subjects, if applicable. Furthermore, procuring a third party would entail additional costs and risks for Market4U, such as losing control and visibility over the data, or exposing the data to unauthorized or unlawful processing by the third party7.

References: 1 Article 4(5) of the GDPR2 Anonymisation | ICO23 Pseudonymisation | ICO34 Data minimisation | ICO45 Guidelines 4/2019 on Article 25 Data Protection by Design and by Default | European Data Protection Board56 Legitimate interests | ICO67 Contracts | ICO7.

According to Article 14 of the GDPR, the data controller must provide the data subject with certain information when collecting personal data from a source other than the data subject1. However, there are some exceptions to this obligation, such as when the data subject already has the information, or when the provision of such information proves impossible or would involve a disproportionate effort2. The latter exception may apply, for example, when the personal data are collected from a large number of sources, or when the personal data are processed for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes3. The data controller must take appropriate measures to protect the data subject’s rights and interests, and make the information publicly available2. References: 1: Art. 14 GDPR – Information to be provided where personal data have not been obtained from the data subject2: Article 14(5)(b) of the GDPR3: Recital 62 of the GDPR.

According to the UK GDPR, a processor is a natural or legal person, public authority, agency or other body which processes personal data on behalf of the controller1. A processor must act only on the documented instructions of the controller and must not process the data for its own purposes or in a way that is incompatible with the controller’s purposes1. If a processor makes an independent decision regarding the purposes and means of processing it carries out on behalf of a controller, it will be considered to be a controller in respect of that processing and will be subject to the same obligations and liabilities as a controller under the UK GDPR1. This means that the processor will have to comply with the data protection principles, ensure the rights of data subjects, implement appropriate technical and organisational measures, report data breaches, conduct data protection impact assessments, appoint a data protection officer if required, and cooperate with the supervisory authority1. The processor will also be exposed to the risk of administrative fines, compensation claims, and reputational damage1. References: 1

https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/controllers-and-processors/controllers-and-processors/what-are-controllers-and-processors/

 A dynamic IP address is a unique numerical label for a device on the internet that changes every time the device connects to the internet. A dynamic IP address by itself is not personal data, as it does not directly identify the person who owns or uses the device. However, a dynamic IP address can become personal data when it is combined with other data held by the controller, such as the web pages accessed by the device, the time and duration of the visit, the location of the device, or the user’s preferences and interests. In this case, the controller can use the additional data to identify the data subject, either directly or indirectly, by linking the dynamic IP address to a specific person or a profile. This was confirmed by the Court of Justice of the European Union (CJEU) in the case of Breyer v Bundesrepublik Deutschland, where the CJEU ruled that a dynamic IP address registered by a website provider constitutes personal data in relation to that provider, where the latter has the legal means to obtain the identity of the data subject from the internet service provider (ISP) that assigned the dynamic IP address. Therefore, option B is the correct answer. References: Directive 95/46/EC, Directive 2002/58/EC, Breyer v Bundesrepublik Deutschland, Case C-582/14, Dynamic IP Addresses can be Personal Data

 Article 9 of the GDPR prohibits the processing of special categories of personal data, which are data that reveal sensitive information about the data subject and may pose a high risk to their rights and freedoms. The GDPR defines 10 types of personal data as special categories, which are:

• personal data revealing racial or ethnic origin;
• personal data revealing political opinions;
• personal data revealing religious or philosophical beliefs;
• personal data revealing trade union membership;
• genetic data;
• biometric data (where used for identification purposes);
• data concerning health;
• data concerning a person’s sex life; and
• data concerning a person’s sexual orientation.

Among the answer choices, only option C is not one of these categories, as financial data is not considered to reveal any sensitive information about the data subject. However, financial data is still subject to the general principles and rules of the GDPR, such as lawfulness, fairness, transparency, accuracy, security, etc. References:

• Special category data | ICO
• Art. 9 GDPR Processing of special categories of personal data
• Special Categories of Data - International Association of Privacy Professionals

When assessing the level of risk created by a data breach, the size of any data processor involved would not have to be taken into consideration. According to the GDPR, a data breach is “a breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, personal data transmitted, stored or otherwise processed” 1. The GDPR requires data controllers and processors to notify the relevant supervisory authority of a data breach within 72 hours, unless the breach is unlikely to result in a risk to the rights and freedoms of natural persons 2. The GDPR also requires data controllers to communicate the data breach to the affected data subjects without undue delay, if the breach is likely to result in a high risk to their rights and freedoms 3.

The GDPR does not specify the exact criteria for determining the level of risk, but it provides some guidance in Recital 85, which states that “the likelihood and severity of the risk to the rights and freedoms of the data subject should be determined by reference to the nature, scope, context and purposes of the processing” . The recital also mentions some factors that could increase the risk, such as the ease of identification of individuals, the special categories of personal data, the large scale of the processing, or the special characteristics of the data controller . Therefore, these factors should be taken into consideration when assessing the level of risk created by a data breach.

However, the size of any data processor involved is not relevant for the risk assessment, as it does not affect the impact of the breach on the data subjects. The data processor is only responsible for processing the personal data on behalf of the data controller, and has no direct relationship with the data subjects . The data processor’s obligations in case of a data breach are to notify the data controller without undue delay, and to assist the data controller in complying with its obligations under the GDPR . The data processor’s size may affect its ability to fulfill these obligations, but it does not change the level of risk created by the data breach itself. References: 1: Article 4(12) of the GDPR 2: Article 33 of the GDPR 3: Article 34 of the GDPR : Recital 85 of the GDPR : Article 4(8) of the GDPR : Article 28 of the GDPR

I hope this helps. If you have any other questions, please feel free to ask. ?

According to Article 32 of the GDPR, the controller and the processor must implement appropriate technical and organisational measures to ensure a level of security appropriate to the risk of the processing1. The GDPR does not prescribe specific security measures, but rather provides a list of factors to consider when determining the appropriate level of security, such as:

• The state of the art and the costs of implementation;
• The nature, scope, context and purposes of processing;
• The risk of varying likelihood and severity for the rights and freedoms of natural persons.

Therefore, the level of security required by the GDPR is not absolute, but relative to the specific circumstances of each processing activity. The GDPR also encourages the use of codes of conduct and certification mechanisms to demonstrate compliance with the security requirements1.

In the scenario, Natural Insight is a processor who receives customer information from BHealthy, a controller, for the purpose of providing pricing services. Natural Insight has a contractual obligation to implement technical and organisational measures to ensure the security of the data, as well as to comply with the GDPR. Natural Insight’s security obligations are not limited to the measures assessed by BHealthy prior to entering into the contract, nor to the level of security that a reasonable data subject would expect. Rather, Natural Insight must take into account the industry practices for protecting customer contact information and purchase history, as well as the potential risks that may arise from the processing, such as data breaches, identity theft, fraud, or discrimination. Natural Insight must also keep up with the state of the art and the costs of implementation, and adjust its security measures accordingly.

References:

• 4: Art. 32 GDPR Security of processing

The GDPR applies to the 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 such data subjects in the EU or the monitoring of their behaviour as far as their behaviour takes place within the EU1. Therefore, after leaving the EU under the terms of Brexit, the UK became a third country for the purposes of the GDPR, meaning that personal data transfers from the EU to the UK are subject to the rules on international data transfers under Chapter V of the GDPR2. In order to ensure the continuity and stability of data flows between the EU and the UK, the UK sought an adequacy decision from the European Commission, which is a formal recognition that a third country provides an equivalent level of data protection to that of the EU3. On 28 June 2021, the European Commission adopted two adequacy decisions in respect of the UK: one for transfers under the GDPR and the other for transfers under the Law Enforcement Directive (LED)4. These decisions allow personal data to flow freely from the EU to the UK without any further safeguard being necessary, and are expected to last until 27 June 2025, unless they are amended, suspended or repealed earlier5. References:

• GDPR, Article 3
• GDPR, Chapter V
• Data protection adequacy for non-EU countries, section “Adequacy decisions”
• UK government welcomes the European Commission’s draft data adequacy decisions
• Adequacy, section “What does the EU GDPR adequacy decision say?”

 The GDPR requires that consent must be freely given, specific, informed and unambiguous1. This means that app developers must provide clear and transparent information about the purposes and legal basis of the data processing, and allow users to choose which types of processing they agree to and which they do not. For example, users should be able to consent separately to different types of cookies, such as functional, analytical or marketing cookies2. Users should also be able to withdraw their consent at any time as easily as they gave it1. Therefore, app design and implementation must take into account these requirements and provide users with granular and user-friendly consent options, rather than relying on pre-ticked boxes, implied consent or default settings3. References: 1 Art. 4 (11) and Art. 7 GDPR – Definitions and Conditions for consent - General Data Protection Regulation (GDPR)2 Guidelines 05/2020 on consent under Regulation 2016/679 - European Data Protection Board3 How To Make Compliant GDPR Consent Forms (With Examples) - Termly.

 A data sharing agreement is a contract that documents what data is being shared and how it can be used. It can be used to make data sharing lawful and to demonstrate compliance with the accountability principle under the GDPR. A data sharing agreement is most likely to be needed when personal data is being shared between commercial organizations acting as joint data controllers, because they have to determine and agree on their respective roles and responsibilities, such as the purpose and legal basis of the data sharing, the rights of the data subjects, the security measures, and the liability for any breaches. A data sharing agreement is not mandatory, but it is good practice and can help to avoid disputes and confusion. A data sharing agreement may not be needed or may be less detailed in the other scenarios, depending on the circumstances and the nature of the data. For example, anonymized data is not personal data under the GDPR and does not require a data sharing agreement, although it may still be subject to other contractual or ethical obligations. Personal data that is proactively shared by a controller to support a police investigation may be covered by a legal obligation or a public interest, and the controller may not have much control over how the data is used by the police. Personal data that is shared with a public authority with powers to require the personal data to be disclosed may also be subject to a legal obligation or a public interest, and the controller may have to comply with the authority’s request without a data sharing agreement. References:

• Data sharing agreements | ICO, which provides guidance on the benefits and contents of a data sharing agreement.
• Data Sharing Agreement - the Definition - GDPR Summary, which explains what a data sharing agreement is and when it can be used.
• The role of data sharing and the GDPR | Data Republic, which discusses the impact of the GDPR on data sharing practices.

One of the main reasons why the CJEU invalidated the Privacy Shield was that it found that the US surveillance programs were not limited to what is strictly necessary and proportionate, as required by the EU law. The CJEU also criticized the lack of effective judicial remedies for EU data subjects whose data was accessed by US authorities. The Trans-Atlantic Data Privacy Framework is intended to address these issues by introducing new safeguards to ensure that signals intelligence activities are necessary and proportionate in the pursuit of defined national security objectives, and by creating a new mechanism for EU individuals to seek redress if they believe they are unlawfully targeted by signals intelligence activities. The Framework also enhances the oversight and transparency of US surveillance practices.

References: EU–US Data Privacy Framework - Wikipedia; FACT SHEET: United States and European Commission Announce Trans-Atlantic Data Privacy Framework | The White House; United States and European Commission Joint Statement on Trans-Atlantic Data Privacy Framework; European Commission and United States Joint Statement on Trans-Atlantic Data Privacy Framework; A practical approach to the new Trans-Atlantic Data Privacy Framework.

According to Article 45 of the GDPR, the European Commission has the power to determine, on the basis of an assessment, whether a non-EU country, a territory or a sector within that country, or an international organisation ensures an adequate level of data protection. This means that the data protection rules and standards in that country or organisation are equivalent to those in the EU. The effect of an adequacy decision is that personal data can flow freely from the EU to that country or organisation without any further safeguards or authorisations. The European Commission has adopted adequacy decisions for several countries and organisations, such as Japan, Canada, and the EU-US Data Privacy Framework. References: Data protection adequacy for non-EU countries, Adequate Level of Protection

 According to the GDPR, personal data must be processed lawfully, fairly and in a transparent manner in relation to the data subject1. The GDPR also recognizes that the processing of special categories of personal data, such as data revealing political opinions, religious or philosophical beliefs, or data concerning health or sex life, may entail a high risk to the rights and freedoms of natural persons2. Therefore, such data can only be processed under certain conditions, such as when the data subject has given explicit consent, or when the processing is necessary for reasons of substantial public interest3.

In this scenario, Ben had the company collect additional data from its customers, including their philosophical beliefs, political opinions and marital status, without a valid legal basis or a legitimate purpose. He also copied the data of the single customers onto a separate database for his own online dating website, without informing them or obtaining their consent. This processing of special categories of personal data created a significant risk to the customers’ fundamental rights and freedoms, such as their right to privacy, dignity, non-discrimination and self-determination. The customers may also suffer from identity theft, fraud, harassment, or unwanted marketing as a result of the unauthorized use of their data. Therefore, Ben’s actions constituted the most serious violation of the GDPR in this scenario.

References:

• Art. 5 GDPR – Principles relating to processing of personal data
• Recital 51 GDPR – Protecting sensitive personal data
• Art. 9 GDPR – Processing of special categories of personal data
• [Guidelines 3/2019 on processing of personal data through video devices]

I hope this helps you understand the GDPR and data processing better. If you have any other questions, please feel free to ask me. ?

 According to the UK GDPR, the data subject has the right to object, on grounds relating to his or her particular situation, to the processing of personal data concerning him or her which is based on point (e) or (f) of Article 6(1), including profiling based on those provisions1. The controller must stop the processing unless it demonstrates compelling legitimate grounds for the processing which override the interests, rights and freedoms of the data subject or for the establishment, exercise or defence of legal claims1. The WP 29 Guidelines on Automated individual decision-making and Profiling provide some guidance on how to assess the existence of such compelling legitimate grounds2. The controller needs to carry out an exercise that weighs the interests of the controller and the basis for the data subject’s objection, consider the impact of the profiling on the data subject’s interest, rights and freedoms, and consider the importance of the profiling to their particular objective2. However, the controller does not need to demonstrate that the profiling is for the purposes of direct marketing, as this is a separate ground for objection under Article 21(2) of the UK GDPR, which gives the data subject an absolute right to object to such processing13. Therefore, option C is the correct answer, as it is not required by the controller to demonstrate that it has compelling legitimate grounds for profiling. References: 132

https://gdpr.eu/article-21-right-to-object/ https://ico.org.uk/for-organisations-2/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/individual-rights/right-to-object/

 According to Article 58 of the GDPR, each supervisory authority has the power to notify the controller or the processor of an alleged infringement of the GDPR as part of its investigative powers. This power allows the supervisory authority to alert the controller or the processor of a possible violation of the GDPR and to initiate further actions if necessary. The notification may also include recommendations or instructions on how to remedy the infringement or prevent further violations. References:

• Article 58 of the GDPR
• European Data Protection Law & Practice textbook, Chapter 9: Supervision and Enforcement, Section 9.2: Supervisory Authorities, Subsection 9.2.2: Powers of Supervisory Authorities

An adequacy decision is a decision adopted by the European Commission, which determines that a third country, a territory or one or more specified sectors within a third country, or an international organisation ensures an adequate level of protection of personal data1. This means that the third country or organisation provides a level of protection that is essentially equivalent to that guaranteed within the European Union (EU), taking into account its domestic law and international commitments, as well as the respect for the rule of law, human rights and fundamental freedoms, relevant legislation, and the existence and effective functioning of independent supervisory authorities1. An adequacy decision is one of the transfer tools that can be used to transfer personal data to a third country or organisation without requiring any further authorisation1. However, an adequacy decision is not permanent and can be amended, suspended or repealed by the Commission at any time, if the conditions are no longer met1. Therefore, according to the recommendations of the European Data Protection Board (EDPB), the additional action that should be taken when a transfer to a third country is based upon an adequacy decision is to monitor changes in the law or practice of the third country that would lower the level of protection of personal data2. This means that the data exporter should stay informed of any developments in the third country or organisation that could affect the validity of the adequacy decision, and take appropriate measures if the level of protection is no longer adequate2. The data exporter should also cooperate with the competent supervisory authority and inform it of any issues that may affect the compliance with the adequacy decision2. Therefore, option D is the correct answer. References: Art. 45 GDPR – Transfers on the basis of an adequacy decision, Recommendations 01/2020 on measures that supplement transfer tools to ensure compliance with the EU level of protection of personal data

The Convention 108+ is the modernized version of the Council of Europe Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data, which was opened for signature on 10 October 20181. The Convention 108+ aims to reinforce the individuals’ protection, strengthen the implementation of the Convention, and promote it as a universal standard for data protection2. The Convention 108+ reflects the same principles as those enshrined in the EU’s General Data Protection Regulation (GDPR), which applies from 25 May 20183. Therefore, the Convention 108+ and the GDPR are largely consistent and coherent in their provisions and objectives.

However, one of the principles of the Convention 108+ that is not consistent with a principle found in the GDPR is the necessity of the bulk collection of personal data by the government. The Convention 108+ allows for the possibility of bulk collection of personal data by the government for national security purposes, subject to certain safeguards and oversight mechanisms. The GDPR, on the other hand, does not regulate the processing of personal data by the government for national security purposes, as this falls outside the scope of EU law. The GDPR also does not explicitly endorse the bulk collection of personal data by the government, but rather requires that any processing of personal data must be based on a legal basis, respect the principles of data protection, and ensure the rights and freedoms of data subjects. Therefore, the correct answer is C.

References:

• Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data
• Convention 108+ and the GDPR
• General Data Protection Regulation
• [Convention 108+: the consultative committee of the convention for the protection of individuals with regard to the processing of personal data (T-PD) publishes its guidelines on artificial intelligence and data protection]
• [Article 3 GDPR – Territorial scope]
• [Article 5 GDPR – Principles relating to processing of personal data]

I hope this helps you understand the Convention 108+ and the GDPR better. If you have any other questions, please feel free to ask me. ?

According to Article 3(1) of the GDPR1, personal data shall be processed in any member state only on the basis of a decision taken at a Union level that is binding for that member state, unless it is derogated from by national law. This means that the GDPR applies to any processing of personal data within the EU, regardless of where the controller or processor is located, as long as it is based on a decision made at a Union level that is binding for that member state.

Therefore, option B would most likely trigger the extraterritorial effect of the GDPR, as it involves personal data of EU citizens being processed by a controller or processor based outside the EU, which may be subject to a decision made at a Union level that is binding for that member state.

Option A would not trigger the extraterritorial effect of the GDPR, as it involves monitoring suspected terrorists, which is not considered processing under Article 4(1) and (2) of the GDPR1. Monitoring may fall under other legal frameworks, such as national security or counter-terrorism laws.

Option C would not trigger the extraterritorial effect of the GDPR, as it involves monitoring EU citizens outside the EU by non-EU law enforcement bodies, which may not be subject to any decision made at a Union level that is binding for that member state.

Option D would not trigger the extraterritorial effect of the GDPR, as it involves processing personal data of EU residents by a non-EU business that targets EU customers, which may not be subject to any decision made at a Union level that is binding for that member state.

References: 1: Free CIPP/E Study Guide - International Association of Privacy Professionals.

The Data Retention Directive (2006/24/EC) was a legal framework that required Member States to ensure that providers of publicly available electronic communications services or of public communications networks retained certain data for a period of between six months and two years, for the purpose of the prevention, investigation, detection and prosecution of serious crime1. However, on 8 April 2014, the Court of Justice of the European Union (CJEU) declared the Directive invalid, as it entailed a wide-ranging and particularly serious interference with the fundamental rights to respect for private life and to the protection of personal data, without limiting the access of the competent national authorities to the data retained to what was strictly necessary2. The CJEU also found that the Directive did not provide sufficient safeguards to ensure effective protection of the data against the risk of abuse and against any unlawful access and use of the data2. Therefore, the Directive is no longer part of EU law.

References:

• Directive 2006/24/EC of the European Parliament and of the Council
• Court of Justice of the European Union PRESS RELEASE No 54/14

I hope this helps you understand the GDPR and data retention better. If you have any other questions, please feel free to ask me. ?

 According to Article 9 of the GDPR, special category data is personal data that needs more protection because it is sensitive. The GDPR defines 10 types of personal data as special categories, which are:

• personal data revealing racial or ethnic origin;
• personal data revealing political opinions;
• personal data revealing religious or philosophical beliefs;
• personal data revealing trade union membership;
• genetic data;
• biometric data (where used for identification purposes);
• data concerning health;
• data concerning a person’s sex life; and
• data concerning a person’s sexual orientation.

Among the answer choices, only option B falls under one of these categories, as trade union membership is considered to reveal political opinions or beliefs. Option A, C and D are not considered as special category data, as they do not reveal any sensitive information about the data subject. However, they are still subject to the general principles and rules of the GDPR, such as lawfulness, fairness, transparency, accuracy, security, etc. References:

• Special category data | ICO
• Art. 9 GDPR Processing of special categories of personal data
• Special Categories of Data - International Association of Privacy Professionals

According to the GDPR, consent is one of the lawful bases for processing personal data1. Consent means any freely given, specific, informed and unambiguous indication of the data subject’s wishes by which he or she, by a statement or by a clear affirmative action, signifies agreement to the processing of personal data relating to him or her2. Therefore, consent must be specific to each purpose of processing and cannot be bundled with other purposes3. If a company wants to use personal data for a new purpose that is not compatible with the original purpose for which consent was given, it must obtain a new consent from the data subjects for the new processing4. Simply informing the data subjects of the new purpose or updating the privacy notice is not sufficient, as it does not imply the data subject’s agreement to the new processing. Proceeding with the new processing without obtaining a new consent would be unlawful and could result in fines and sanctions5. References:

• Free CIPP/E Study Guide, page 23, section 4.1.1
• GDPR, Article 4 (11)
• GDPR, Recital 32
• GDPR, Article 6 (4)
• GDPR, Article 83 (5) (a)