CIPP-US Certified Information Privacy Professional/United States (CIPP/US) Questions and Answers

 The Family Educational Rights and Privacy Act of 1974 (FERPA) is a federal law that protects the privacy of student education records. FERPA grants parents or eligible students the right to access, amend, and control the disclosure of their education records, with some exceptions. Schools must obtain written consent from the parent or eligible student before disclosing any personally identifiable information from the education records, unless an exception applies123

Option A violates FERPA because it involves the disclosure of a student’s personally identifiable information (PII) from the education records without consent. A student’s signed essay about her hometown is considered an education record under FERPA, as it is directly related to the student and maintained by the school12 A K-12 assessment vendor is not a school official with a legitimate educational interest, nor does it fall under any of the exceptions that allow disclosure without consent12 Therefore, the school must obtain the student’s (or the parent’s, if the student is a minor) written consent before providing the essay to the vendor for public release.

Option B does not violate FERPA because it involves the disclosure of directory information, which is not considered PII under FERPA. Directory information is information that would not generally be considered harmful or an invasion of privacy if disclosed, such as name, address, phone number, e-mail address, major, etc12 Schools may disclose directory information without consent, unless the parent or eligible student has opted out of such disclosure12 However, schools must notify parents and eligible students of the types of directory information they designate and their right to opt out annually12

Option C does not violate FERPA because it involves the disclosure of information that is not part of the education records. FERPA only applies to education records that are directly related to a student and maintained by theschool or a party acting for the school12 A newspaper’s publication of the names, grade levels, and hometowns of students who made the quarterly honor roll is not based on the education records, but on the newspaper’s own sources and reporting. Therefore, FERPA does not prohibit such disclosure.

Option D does not violate FERPA because it involves the disclosure of information under an exception that allows disclosure without consent. FERPA permits schools to disclose education records, or PII from education records, without consent to comply with a judicial order or lawfully issued subpoena, or to appropriate officials in connection with a health or safety emergency123 If the university police provide an arrest report to the student’s hometown police in response to a subpoena or to prevent a serious threat to the student or others, they are not violating FERPA.

References: 1: Family Educational Rights and Privacy Act - Wikipedia 2: Family Educational Rights and Privacy Act (FERPA) | CDC 3: What is FERPA? | Protecting Student Privacy - ed

The Telemarketing Sales Rule (TSR) is a federal regulation that applies to telemarketing calls, which are defined as "a plan, program, or campaign which is conducted to induce the purchase of goods or services or a charitable contribution, by use of one or more telephones and which involves more than one interstate telephone call."1 The TSR requires telemarketers to make specific disclosures, prohibit misrepresentations, limit the times and number of calls, and set payment restrictions for the sale of certain goods and services. TheTSR also gives consumers the right to opt out of receiving telemarketing calls by registering their phone numbers on the National Do Not Call Registry.2

The TSR applies to both for-profit and not-for-profit organizations, but there are some exemptions and partial exemptions for certain types of entities, calls, and transactions. For example, the TSR does not apply to nonprofit organizations calling on their own behalf, as they are not considered to be engaged in telemarketing. However, if a nonprofit organization hires a for-profit telemarketer or telefunder to solicit charitable contributions on its behalf, the for-profit entity must comply with the TSR, as it is engaged in telemarketing. Similarly, the TSR does not apply to for-profit organizations calling businesses when a binding contract exists between them, as they are not considered to be inducing the purchase of goods or services. However, if a for-profit organization calls businesses to sell additional services to established customers, the TSR applies, as it is considered to be inducing the purchase of goods or services.3

Therefore, among the four options, only for-profit organizations and for-profit telefunders regarding charitable solicitations must comply with the TSR, as they are engaged in telemarketing and do not fall under any of the exemptions or partial exemptions. References: 1: eCFR :: 16 CFR Part 310 – Telemarketing Sales Rule3, Section 310.22: Telemarketing Sales Rule | Federal Trade Commission1, Rule Summary3: Complying with the Telemarketing Sales Rule - Federal Trade Commission2, Exemptions to the TSR.

Redaction is the permanent removal of sensitive data—the digital equivalent of “blacking out” text in printed material. Redaction can be accomplished by simply deleting characters from a file or database record, or by replacing characters with asterisks or other placeholders. Redaction is often used to protect personal information, such as names, addresses, social security numbers, or financial data, on documents that are disclosed in litigation, such as pleadings, exhibits, or discovery responses. Redaction is required by courts to comply with privacy laws and rules, such as the Federal Rules of Civil Procedure (FRCP), which mandate that parties must redact certain types of personal information from documents filed with the court or produced to the other party. Redaction is also a best practice to minimize the risk of unauthorized access, identity theft, or reputational harm that may result from exposing personal information in litigation. References:

When to redact, or not, disclosable documents in litigation - Stewarts

The approach to redaction – High Court guidance - Lexology

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 3: Federal Privacy Laws and Regulations, Section 3.2: Federal Rules of Civil Procedure (FRCP).

The California Consumer Privacy Act (CCPA) defines a ‘sale’ of personal information as any transfer or disclosure of personal information to another business or third party for monetary or other valuable consideration. However, the CCPA also provides some exceptions to this definition, such as:

If the consumer has directed the business to intentionally disclose the personal information or use the personal information to interact with a third party, provided the third party does not also sell the personal information.

If the business transfers the personal information to a service provider that is contractually prohibited from retaining, using, or disclosing the personal information for any purpose other than performing the services specified in the contract with the business.

If the business transfers the personal information to a third party as part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided the information is used or shared consistently with the CCPA.

The use of cookies on a website by a service provider is generally not deemed a sale of personal information by the CCPA, as long as the information collected by the service provider is necessary to perform the services specified in the contract with the business,and the service provider does not further collect, sell, or use the personal information of the consumer except as necessary to perform the business purpose. One of the examples of a valid business purpose is to perform debugging to identify and repair errors that impair existing intended functionality.

Therefore, option D is the correct answer, as it describes a scenario where the use of cookies by a service provider is not a sale of personal information under the CCPA, assuming the service provider complies with the contractual obligations and does not further use or disclose the information.

Option A is incorrect, as it does not describe a valid exception to the definition of a sale. The third party that stores personal information to trigger a response to a consumer’s request to opt in is not acting as a service provider, but as a separate entity that may have its own interest in the personal information. The consumer’s request to opt in does not necessarily imply that the consumer has directed the business to disclose the personal information to the third party.

Option B is incorrect, as it does not describe a valid exception to the definition of a sale. The analytics cookies placed by the service provider may still constitute a sale of personal information, even if they cannot be linked to a particular consumer of that business. The CCPA defines personal information broadly to include any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. Therefore, the analytics cookies may still fall within the scope of personal information, and their use by the service provider may still be a sale, unless one of the exceptions applies.

Option C is incorrect, as it does not describe a valid exception to the definition of a sale. The service provider that retains personal information obtained in the course of providing the services specified in the agreement with the subcontractors is not acting as a service provider to the business, but as a separate entity that may have its own interest in the personal information. The agreement with the subcontractors does not necessarily imply that the business has authorized the service provider to retain, use, or disclose the personal information for any purpose other than performing the services specified in the contract with the business.

References:

[IAPP CIPP/US Study Guide], Chapter 10: California Consumer Privacy Act, pp. 223-226.

CIPP/US Practice Questions (Sample Questions), Question 30.

The FTC alleged that Google violated its own privacy policies, engaged in deceptive trade practices, and failed to comply with Safe Harbor principles when it launched Google Buzz, a social networking service that automatically enrolled Gmail users and exposed their email contacts and other personal information without their consent or control. The FTC did not allege that Google failed to employ sufficient security safeguards, although it did require Google to implement a comprehensive privacy program and submit to regular privacy audits as part of the settlement. The other statements are incorrect because:

A. Violated its own privacy policies: The FTC alleged that Google violated its own privacy policies by using information collected from Gmail users for a purpose that wasincompatible with the purpose for which the information was collected, without obtaining their affirmative consent. Google’s privacy policy stated that "When you sign up for a particular service that requires registration, we ask you to provide personal information. If we use this information in a manner different than the purpose for which it was collected, then we will ask for your consent prior to such use."1

B. Engaged in deceptive trade practices: The FTC alleged that Google engaged in deceptive trade practices by misrepresenting the extent to which consumers could exercise control over the collection, use, and sharing of their personal information through Google Buzz. For example, Google offered consumers the option to decline or turn off Google Buzz, but the option was ineffective and did not fully remove the consumer from the social network. Google also misled consumers about how their email contacts would be treated on Google Buzz, and failed to disclose that certain information, such as the user’s frequent email contacts, would be made public by default.1

C. Failed to comply with Safe Harbor principles: The FTC alleged that Google failed to comply with the U.S.-EU Safe Harbor Framework, which provides a method for U.S. companies to transfer personal data from the European Union to the United States in a way that meets EU data protection requirements. Google had self-certified to the Department of Commerce that it adhered to the Safe Harbor Privacy Principles, which include notice, choice, access, and enforcement. The FTC alleged that Google’s conduct violated the notice and choice principles, as well as the requirement to adhere to the Safe Harbor FAQs.1 References: FTC Charges Deceptive Privacy Practices in Google’s Rollout of Its Buzz Social Network, Google, Inc., In the Matter of, Google settles with FTC over Buzz; Privacy policies to be audited for two decades, Google Settles FTC Complaint over Google Buzz Privacy

 According to FERPA, a school may disclose personally identifiable information (PII) from an eligible student’s education records without consent if the disclosure meets one of the exceptions in 34 CFR § 99.31. One of these exceptions is for disclosures to other schools to which a student seeks or intends to enroll, or is already enrolled if the disclosure is for purposes related to the student’s enrollment or transfer (34 CFR § 99.31(a)(2)). This exception allows schools to disclose transcripts, recommendations, or other information that may facilitate the student’s admission or enrollment at another school. However, the school must make a reasonable attempt to notify the student of the disclosure, unless the student initiated the disclosure, and must provide the student with a copy of the records that were disclosed upon request (34 CFR § 99.34(a)(1)). References: https://studentprivacy.ed.gov/ferpa

https://studentprivacy.ed.gov/ferpa

The Stored Communications Act (SCA) is a federal law that regulates the privacy of electronic communications that are stored by third-party service providers, such as email providers, cloud storage providers, or social media platforms. The SCA prohibits unauthorized access to or disclosure of such communications, unless authorized by law or by the consent of the user or the service provider . The SCA also provides exceptions for certain types of access or disclosure, such as those made for law enforcement purposes, for the protection of the service provider’s rights or property, or for the consent of the subscriber or customer .

One of the exceptions to the SCA is where the service provider gives consent to the access or disclosure of the stored communications. This means that if a third-party service provider agrees to cooperate with an investigation or a request for information, the access or disclosure is lawful under the SCA. Consent can be express or implied, depending on the circumstances and the terms of service of the provider. For example, if a service provider has a policy that allows it to disclose user information to third parties for legitimate purposes, the provider has impliedly consented to the access or disclosure of the stored communications. However, if a service provider has a policy that prohibits such disclosure, the provider has not consented to the access or disclosure of the stored communications.

In the scenario, Evan’s undercover investigation may have been authorized by the SCA if he obtained the consent of the third-party service provider that stored the electronic communications of the employee who was suspected of misconduct. For instance, if the employee used a company email account or a cloud storage service that had a policy that allowed the service provider to disclose user information to the employer or to law enforcement, Evan may have been able to access or disclose the stored communications with the consent of the service provider. However, if the employee used a personal email account or a cloud storage service that had a policy that protected user privacy and prohibited such disclosure, Evan may have violated the SCA by accessing or disclosing the stored communications without the consent of the service provider.

References: : [Stored Communications Act], 18 U.S.C. §§ 2701-2712 : [IAPP CIPP/US Study Guide], Chapter 8, Section 8.2.2. : [The Stored Communications Act: An Old Statute for Modern Problems], pp. 10-11.

The Family and Medical Leave Act (FMLA) is a federal law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons, such as the birth or adoption of a child,the serious health condition of the employee or a family member, or a qualifying exigency arising from the employee’s spouse, child, or parent being on covered active duty or call to covered active duty status in the Armed Forces. The FMLA also provides eligible employees with up to 26 weeks of unpaid, job-protected leave per year to care for a covered service member with a serious injury or illness if the employee is the spouse, child, parent, or next of kin of the service member. The FMLA applies to all public agencies, including state, local, and federal employers, and local education agencies (schools), and to private sector employers who employ 50 or more employees for at least 20 workweeks in the current or preceding calendar year.

The FMLA often requires employers to collect medical information from employees who request FMLA leave or from their health care providers to certify the need for leave, the duration of leave, and the employee’s ability to return to work. The FMLA regulations specify the type and amount of information that employers may request and require for different types of FMLA leave, such as:

Basic medical facts, such as the diagnosis, symptoms, hospitalization, doctor visits, whether medication has been prescribed, and any referrals for evaluation or treatment, for the employee’s own serious health condition or that of a family member.

Information on the medical necessity of intermittent leave or reduced schedule leave and the expected frequency and duration of such leave, for the employee’s own serious health condition or that of a family member, or for planned medical treatment.

A statement of the facts regarding the qualifying exigency, such as the type of military duty, the dates of the covered active duty, and the contact information of the military member, for leave due to a qualifying exigency arising from the employee’s spouse, child, or parent being on covered active duty or call to covered active duty status in the Armed Forces.

Information on the medical condition, treatment, and recovery of the covered service member, such as the date of injury or onset of illness, the current medical status, the prognosis, and the estimated time of treatment, for leave to care for a covered service member with a serious injury or illness.

The FMLA also imposes certain obligations on employers to protect the privacy and security of the medical information they collect from employees or their health care providers. For example, employers must:

Maintain records and documents relating to medical certifications, recertifications, or medical histories of employees or employees’ family members as confidential medical records in separate files/records from the usual personnel files, and if the Americans with Disabilities Act (ADA) applies, such records must be maintained in conformance with ADA confidentiality requirements.

Ensure that any electronic systems used to maintain such records meet the confidentiality requirements of the FMLA and the ADA, and that only authorized persons have access to such records.

Limit the disclosure of such records to supervisors and managers who need to know about an employee’s FMLA leave, first aid and safety personnel when an employee’s medical condition might require emergency treatment, and government officials investigating compliance with the FMLA.

Comply with the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule when requesting medical information from an employee’s health care provider, such as obtaining a valid authorization from the employee or using a HIPAA-compliant certification form.

Refrain from requesting more information than allowed by the FMLA regulations, such as asking for an employee’s complete medical records or information unrelated to the FMLA leave request.

Respect the employee’s right to revoke a medical authorization or challenge a medical certification, and follow the procedures for resolving disputes over the validity or sufficiency of such documents.

References:

The Family and Medical Leave Act (FMLA)

FMLA Employee Guide

FMLA Employer Guide

FMLA Regulations

FMLA Forms

The state UDAP statute, which stands for Unfair and Deceptive Acts and Practices, is a law that protects consumers from unfair or deceptive business practices. In this case, the employer’s failure to protect the employee’s personal information from a phishing attack could be considered an unfair or deceptive act or practice that harmed the employee. The employee could sue the employer under the state UDAP statute for damages, injunctive relief, or other remedies. The other options are not relevant to this scenario, as they deal with different aspects of data protection, such as confidentiality, access, or destruction of personal information. References:

[IAPP CIPP/US Study Guide], Chapter 8, Section 8.3.1, page 227

IAPP CIPP/US Practice Questions, Question 153, page 13

HIPAA requires covered entities, such as hospitals, to enter into contracts with their business associates, such as billing companies, that access, use, or disclose protected health information (PHI). These contracts, known as business associate agreements (BAAs), must specify the permitted and required uses and disclosures of PHI by the business associate, as well as the safeguards, reporting, and termination procedures that the business associate must follow to protect the privacy and security of PHI. By having these contracts in place, the hospital can ensure that the billing company is complying with HIPAA and observing the minimum security standards required by law. References:

HIPAA Rules for Medical Billing - Compliancy Group

HIPAA Compliance for Billing Companies: Easy Guide - iFax

 Declan might directly violate the HIPAA Privacy Rule by using John’s name and personal health information (PHI) in his paper without his written authorization. The Privacy Rule protects the confidentiality of PHI that is created, received, maintained, or transmitted by a covered entity or its business associate. PHI includes any information that relates to the past, present, or future physical or mental health or condition of an individual, the provision of health care to an individual, or the past, present, or future payment for the provision of health care to an individual, and that identifies the individual or for which there is a reasonable basis to believe can be used to identify the individual1. Declan, as a nursing assistant, is part of the covered entity’s workforce and must comply with the Privacy Rule. He cannot disclose John’s PHI to anyone, including his classmates or instructors, without John’s authorization or a valid exception under the Privacy Rule. Even if he does not use John’s full name, hemay still reveal enough information to make John identifiable, such as his diagnosis, his father’s condition, or his location. This would be an impermissible use and disclosure of PHI, and a potential HIPAA violation. Declan should either obtain John’s written authorization to use his PHI in his paper, or de-identify the information according to the Privacy Rule’s standards2. References:

Summary of the HIPAA Privacy Rule

Guidance Regarding Methods for De-identification of Protected Health Information in Accordance with the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule

The Dodd-Frank Act was established to prevent the risky financial practices that led to the 2007–2008 financial crisis, which included issues similar to Noah’s experience with buying stocks without understanding the risks. The act includes provisions forconsumer protection in financial services and aims to prevent abusive practices in the financial industry

The UK company can ensure an adequate level of data protection for the restricted data transfer to the US parent company by using the EU Standard Contractual Clauses (SCCs), which are contractual terms that provide safeguards for personal data transferred from the UK to third countries. The UK GDPR recognizes the validity of the EU SCCs adopted before the end of the Brexit transition period, and allows the UK Information Commissioner’s Office (ICO) to issue new SCCs in the future. The other options are not correct because:

A. Signing up to an approved code of conduct under the UK GDPR is not sufficient to ensure an adequate level of data protection for restricted transfers, as it is not a transfer mechanism on its own. The UK company would still need to use another appropriate safeguard, such as SCCs or Binding Corporate Rules (BCRs), to transfer personal data to the US parent company.

C. Submitting a new application for the UK BCRs is not necessary, as the UK GDPR recognizes the existing authorized EU BCRs as valid for restricted transfers from the UK. The UK company can continue to rely on its EU BCRs, as long as they are updated to reflect the UK GDPR requirements and the role of the ICO as the competent supervisory authority.

D. Allowing each employee the option to opt-out to the restricted transfer is not a valid transfer mechanism under the UK GDPR, as it does not provide adequate safeguards for the personal data of the employees. The UK company would need to obtain the explicit consent of each employee for the restricted transfer, which must be freely given, specific, informed, and unambiguous. References:

UK GDPR, Chapter V, Article 46

UK GDPR, Chapter V, Article 47

UK GDPR, Chapter V, Article 49

ICO guidance on international transfers

IAPP CIPP/US Study Guide, Chapter 10, Section 10.3.2

BYOD is a practice that allows employees to use their own personal devices, such as smartphones, tablets, or laptops, for work-related purposes. BYOD can offer some benefits for both employers and employees, such as increased flexibility, convenience, and productivity. However, BYOD also poses significant privacy and security risks, such as data breaches, unauthorized access, loss or theft of devices, malware infections, and compliance challenges. Therefore, the business consultant will most likely advise Felicia and Celeste to weigh any productivity benefits of the plan against the risk of privacy issues, and to implement a comprehensive BYOD policy that addresses the following aspects:

The scope and purpose of the BYOD program, including the types of devices, data, and applications that are allowed or prohibited.

The roles and responsibilities of the employer and the employees, including the ownership, control, and access rights of the devices and the data.

The security measures and controls that are required to protect the devices and the data, such as encryption, passwords, remote wipe, antivirus software, firewalls, and VPNs.

The privacy expectations and obligations of the employer and the employees, such as the notice, consent, and disclosure requirements, the limits on data collection and monitoring, the retention and deletion policies, and the rights of access and correction.

The legal and regulatory compliance requirements that apply to the BYOD program, such as the FTC Act, the GLBA, the HIPAA, the COPPA, the CCPA, and the GDPR.

The incident response and reporting procedures that are followed in the event of a data breach, loss, or theft of a device, or any other privacy or security issue.

The training and education programs that are provided to the employees to raise awareness and understanding of the BYOD policy and the best practices.

The enforcement and audit mechanisms that are used to ensure compliance and accountability of the BYOD policy, such as sanctions, penalties, reviews, and audits. References:

IAPP CIPP/US Body of Knowledge, Section III.C.2

IAPP CIPP/US Textbook, Chapter 3, pp. 113-115

FTC Mobile Device Security

The “Discover” phase of building an information management program is the first step in the process of creating a privacy framework. It involves identifying the types, sources, and flows of personal information within an organization, as well as the legal, regulatory, and contractual obligations that apply to it. The tasks in this phase include:

Conducting a data inventory and mapping exercise to document what personal information is collected, used, shared, and stored by the organization, and how it is protected.

Assessing the current state of privacy compliance and risk by reviewing existing policies, procedures, and practices, and identifying any gaps or weaknesses.

Understanding the laws that regulate a company’s collection of information, such as the Fair Credit Reporting Act (FCRA), the Gramm-Leach-Bliley Act (GLBA), the Health Insurance Portability and Accountability Act (HIPAA), and the California Consumer Privacy Act (CCPA).

Facilitating participation across departments and levels to ensure that all stakeholders are involved and informed of the privacy goals and objectives, and to foster a culture of privacy awareness and accountability.

Developing a process for review and update of privacy policies is not a task in the “Discover” phase, but rather in the “Implement” phase, which is the third step in the process of creating a privacy framework. It involves putting the privacy policies and procedures into action, and ensuring that they are effective and compliant. The tasks in this phase include:

Developing a process for review and update of privacy policies to reflect changes in the business environment, legal requirements, and best practices, and to incorporate feedback from internal and external audits and assessments.

Implementing privacy training and awareness programs to educate employees and other relevant parties on their roles and responsibilities regarding privacy, and to promote a privacy-by-design approach.

Establishing privacy governance and oversight mechanisms to monitor and measure the performance and outcomes of the privacy program, and to ensure accountability and transparency.

Developing a process for responding to privacy incidents and requests from data subjects, regulators, and other parties, and to mitigate and remediate any privacy risks or harms.

References:

IAPP CIPP/US Body of Knowledge, Domain I: Information Management from a U.S. Perspective, Section A: Building a Privacy Program

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1: Information Management from a U.S. Perspective, Section 1.1: Building a Privacy Program

Practice Exam - International Association of Privacy Professionals

An injunction is a court order that requires a party to stop or refrain from doing something. In a case of civil litigation, a defendant who is being sued for distributing an employee’s private information might face an injunction that prohibits them from further disclosing or using the employee’s private information. An injunction is a form of equitable relief that aims to prevent or remedy harm that cannot be adequately compensated by monetary damages. Probation, criminal fines, and jail sentences are forms of criminal sanctions that are not applicable in civil litigation, unless the defendant is also charged with a criminal offense related to the distribution of the employee’s private information. References: Standing issues in U.S. privacy class actions, US Private-Sector Privacy (CIPP/US Exam Prep), IAPP CIPP/US

 The CCPA applies to any business that collects personal information of California residents, regardless of where the business is located1. The CCPA defines personal information broadly as any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household2. This could include business contact information, such as name, email address, phone number, or job title, if it is linked to a specific individual3. Therefore, Otto should tell the Board that business contact information could be considered personal information governed by CCPA, and that the company may need to comply with the CCPA requirements, such as providing notice, honoring consumer rights requests, and implementing reasonable security measures4. References:

CIPP/US Practice Questions (Sample Questions), Question 124, Answer C, Explanation C.

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 6, Section 6.2, p. 181-182.

California Consumer Privacy Act (CCPA), Section 1798.140, Subsection (o).

CCPA Compliance Checklist for Businesses, Section 2, Subsection (a).

 Data breach notification laws in the United States vary by state and territory, and there is no comprehensive federal law that applies to all types of personal information. Some federal laws, such as HIPAA, GLBA, and the FDIC rule, impose data breach notification requirements for specific industries or sectors, but they do not cover all types of personal information or all entities that collect, store, or process such information. Therefore, the only obligations to provide data breach notification for the breach of personal information are under state law, unless a specific federal law applies to the entity or the information involved. The other statements are incorrect because:

A. You do not have to notify the FTC in addition to affected individuals if over 500 individuals are receiving notice, unless you are a health care entity subject to HIPAA, in which case you have to notify the Department of Health and Human Services (HHS) within 60 days of the breach.

B. When providing an individual with required notice of a data breach, you do not have to identify what personal information was actually or likely compromised, unless the state law requires you to do so. Some states, such as California, require the notice to include the types of personal information that were or are reasonably believed to have been the subject of the breach, while others, such as Alabama, do not specify the content of the notice.

C. When you are required to provide an individual with notice of a data breach under any state’s law, you do not have to provide the individual with an offer for free credit monitoring, unless the state law requires you to do so. Some states, such as Connecticut, require the offer of appropriate identity theft prevention and mitigation services for at least 12 months, while others, such as Arizona, do not impose such a requirement. References: Data Breach Notification in the United States and Territories, Data Breach Notification Laws in the United States: What is Required and How is that Determined?, US State Data Breach Notification Law Matrix, Breach Notification in United States, Data Breach Notification Laws: How to Manufacture a Confident Response

The data privacy leader needs to identify all the personal data that the Company has received from the retailer, as well as the purposes, retention periods, and sharing practices of such data. Since the data inventory is obsolete, the data privacy leader cannot rely on it to provide accurate and complete information. Therefore, the next best source of information is to interview the key marketing personnel who are responsible for the partnership with the retailer and the use of the personal data. The marketing personnel can provide insights into the data flows, the data categories, the data processing activities, and the data protection measures that the Company has implemented. They can also help the data privacy leader to locate the relevant documents, contracts, and records that can support the investigation. References: [IAPP CIPP/US Study Guide], Chapter 5: Data Management, p. 97-98; IAPP Privacy Tech Vendor Report, Data Mapping and Inventory, p. 9-10.

 E-discovery is the process by which parties share, review, and collect electronically stored information (ESI) to use as evidence in a legal matter1. The rules for e-discovery mainly prevent a conflict between business practice and technological safeguards, because they establish the standards and procedures for preserving, collecting, reviewing, and producing ESI in a way that balances the needs of litigation with the realities of technology2. For example, the Federal Rules of Civil Procedure (FRCP) provide guidance on the scope, timing, format, and methods of e-discovery, as well as the sanctions for failing to comply withe-discovery obligations3. The rules also encourage cooperation and communication among parties and courts to resolve e-discovery issues efficiently and effectively4. By following the rules for e-discovery, parties can avoid disputes, delays, and costs that may arise from incompatible or inconsistent business and technological practices.

The other options are not the main purpose of the rules for e-discovery, although they may be related or affected by them. The rules for e-discovery do not directly prevent the loss of information due to poor data retention practices, although they do impose a duty to preserve relevant ESI when litigation is reasonably anticipated5. The rules for e-discovery do not directly prevent the practice of employees using personal devices for work, although they do require parties to identify and disclose the sources of ESI that may be subject to discovery, including personal devices6. The rules for e-discovery do not directly prevent a breach of an organization’s data retention program, although they do require parties to produce ESI in a reasonably usable form and to protect privileged or confidential information7.

References: 1: Everything You Need to Know About E-Discovery, The National Law Review. 2: E-Discovery: The Basics of E-Discovery Guide - Exterro, Exterro.com. 3: Federal Court and Government Agency E-Discovery Rules and Guidelines, Crowell & Moring LLP. 4: FRCP Rule 1, Cornell Law School. 5: FRCP Rule 37, Cornell Law School. 6: FRCP Rule 26, Cornell Law School. 7: FRCP Rule 34, Cornell Law School.

Implied consent is a form of consent that is inferred from the actions or inactions of the data subject, rather than explicitly expressed by the data subject1.

Implied consent is generally considered a valid basis for processing personal data under certain circumstances, such as when the processing is necessary for the performance of a contract, the legitimate interests of the data controller, or the reasonable expectations of the data subject2.

However, implied consent may not be sufficient for processing sensitive personal data, such as health, biometric, or genetic data, or for sending marketing communications, depending on the applicable laws and regulations2.

In the U.S., there is no comprehensive federal privacy law that regulates the use of implied consent for data processing, but there are sector-specific laws and state laws that may impose different requirements and limitations3.

Based on the scenarios given in the question, the situation that is most likely to involve a company operating under the assumption of implied consent is A. An employer contacts the professional references provided on an applicant’s resume.

This is because the employer may reasonably infer that the applicant has consented to the contact of the references by voluntarily providing their information on the resume, and that the contact is necessary for the legitimate interest of the employer to verify the applicant’s qualifications and suitability for the job4.

The other situations may not involve implied consent, but rather require explicit consent or provide opt-out options for the data subjects, depending on the type and purpose of the data processing and the relevant laws and regulations5 . For example:

B. An online retailer subscribes new customers to an e-mail list by default. This may violate the CAN-SPAM Act, which requires online marketers to obtain affirmative consent from the recipients before sending commercial e-mail messages, and to provide a clear and conspicuous opt-out mechanism in every message5.

C. A landlord uses the information on a completed rental application to run a credit report. This may violate the Fair Credit Reporting Act, which requires landlords to obtain written authorization from the applicants before obtaining their consumer reports, and to provide them with a copy of the report and a summary of their rights if they take any adverse action based on the report.

D. A retail clerk asks a customer to provide a zip code at the check-out counter. This may violate the California Song-Beverly Credit Card Act, which prohibits retailers fromrequesting and recording personal identification information from customers who pay with a credit card, unless the information is necessary for a special purpose, such as shipping or fraud prevention.

References: 1: Implied Consent 2: Consent 3: U.S. Private-Sector Privacy (CIPP/US) 4: [Reference Checks: Tips for Job Applicants and Employers] 5: [CAN-SPAM Act: A Compliance Guide for Business] : [Using Consumer Reports: What Landlords Need to Know] : [California Song-Beverly Credit Card Act] : [Reference Checks: Tips for Job Applicants and Employers] : [CAN-SPAM Act: A Compliance Guide for Business] : [Using Consumer Reports: What Landlords Need to Know] : [California Song-Beverly Credit Card Act]

The Children’s Online Privacy Protection Act (COPPA) is a federal law that regulates the online collection and use of personal information from children under 13 years of age. COPPA requires operators of websites or online services that are directed to children, or that knowingly collect personal information from children, to obtain verifiable parental consent before collecting, using, or disclosing such information. Verifiable parental consent means any reasonable effort (taking into consideration available technology) to ensure that before personal information is collected from a child, the child’s parent receives notice of the operator’s information practices and consents to those practices. COPPA also imposes other obligations on operators, such as providing parents with access to their children’s information, maintaining reasonable security measures, and limiting data retention. References: COPPA, IAPP CIPP/US Study Guide, Chapter 2, Section 2.3.1

The APEC Privacy Framework is a set of non-binding principles adopted by the Asia-Pacific Economic Cooperation (APEC) that aim to promote electronic commerce and protect information privacy in the region. The Framework is consistent with the core values of the OECD Guidelines on the Protection of Privacy and Trans-Border Flows of Personal Data, and reaffirms the value of privacy to individuals and to the information society. The Framework consists of nine principles: Preventing Harm, Notice, Collection Limitation, Use of Personal Information, Choice, Integrity of Personal Information, Security Safeguards, Access and Correction, and Accountability. Privacy by Design is not one of the principles in the APEC Privacy Framework, although it is a concept that is endorsed by the OECD Guidelines and other privacyframeworks. References: APEC Privacy Framework (2015), APEC Privacy Principles, IAPP CIPP/US Study Guide, Chapter 4.

According to the CAN-SPAM Act of 2003, a federal law that regulates commercial email messages, a commercial message sender must honor a recipient’s opt-out request within 10 business days. The sender must provide a clear and conspicuous way for the recipient to opt out of receiving future emails, such as a link or an email address. The sender must not charge a fee, require the recipient to provide any personal information, or make the recipient take any steps other than sending a reply email or visiting a single web page to opt out. The sender must also not sell, exchange, or transfer the email address of the recipient who has opted out, unless it is necessary to comply with the law or prevent fraud.

References:

IAPP CIPP/US Body of Knowledge, Domain II: Limits on Private-sector Collection and Use of Data, Section B: Communications and Marketing

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 2: Limits on Private-sector Collection and Use of Data, Section 2.2: Communications and Marketing

Practice Exam - International Association of Privacy Professionals

The Electronic Communications Privacy Act of 1986 (ECPA) is a federal law that protects the privacy of wire, oral, and electronic communications while they are being made, in transit, or stored on computers1. The ECPA has three titles: Title I prohibits the intentional interception, use, or disclosure of wire, oral, or electronic communications, except for certain exceptions, such as consent, provider protection, or law enforcement purposes2. Title II, also known as the Stored Communications Act (SCA), prohibits the unauthorized access to or disclosure of stored wire or electronic communications, such as email, voicemail, or online messages, except for certain exceptions, such as consent, provider protection, or law enforcement purposes3. Title III regulates the installation and use of pen register and trap and trace devices, which record thenumbers dialed to or from a telephone line, but not the content of the communications4.

Therefore, the action that is prohibited under the ECPA is intercepting electronic communications and unauthorized access to stored communications, which are covered by Title I and Title II of the Act, respectively. The other actions are not prohibited by the ECPA, as long as they comply with the exceptions and requirements of the Act. For example, monitoring all employee telephone calls or monitoring employee telephone calls of a personal nature may be allowed if the employer has a legitimate business purpose, has obtained the consent of the employees, or has a court order5. Accessing stored communications with the consent of the sender or recipient of the message is also allowed under the ECPA, as consent is one of the exceptions to the prohibition of unauthorized access3.

References: 1: Electronic Communications Privacy Act of 1986 (ECPA), Bureau of Justice Assistance. 2: 18 U.S. Code Chapter 119 - WIRE AND ELECTRONIC COMMUNICATIONS INTERCEPTION AND INTERCEPTION OF ORAL COMMUNICATIONS, Legal Information Institute. 3: 18 U.S. Code Chapter 121 - STORED WIRE AND ELECTRONIC COMMUNICATIONS AND TRANSACTIONAL RECORDS ACCESS, Legal Information Institute. 4: 18 U.S. Code Chapter 206 - PEN REGISTERS AND TRAP AND TRACE DEVICES, Legal Information Institute. 5: Monitoring Employees’ Phone Calls and E-Mail, FindLaw.

The Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA) is a federal regulation that requires any person or entity that maintains or possesses consumer information derived from consumer reports to dispose of such information in a secure and proper manner1.

The Disposal Rule aims to protect consumers from identity theft and fraud by preventing unauthorized access to or use of their personal information1.

The Disposal Rule is enforced by several federal agencies, depending on the type and sector of the entity that is subject to the rule1. These agencies include:

The Federal Trade Commission (FTC), which has general authority over most entities that are not specifically regulated by other agencies2.

The Consumer Financial Protection Bureau (CFPB), which has authority over consumer financial products and services, such as banks, credit unions, lenders, debt collectors, and credit reporting agencies3.

The Office of the Comptroller of the Currency (OCC), which has authority over national banks and federal savings associations4.

The Federal Deposit Insurance Corporation (FDIC), which has authority over state-chartered banks that are not members of the Federal Reserve System and state-chartered savings associations5.

The Board of Governors of the Federal Reserve System (FRB), which has authority over state-chartered banks that are members of the Federal Reserve System, bank holding companies, and certain nonbank subsidiaries of bank holding companies.

The National Credit Union Administration (NCUA), which has authority over federally insured credit unions.

The Securities and Exchange Commission (SEC), which has authority over brokers, dealers, investment companies, and investment advisers.

The Commodity Futures Trading Commission (CFTC), which has authority over commodity futures and options markets and intermediaries.

The Department of Health and Human Services (HHS) is NOT one of the federal agencies that enforces the Disposal Rule under FACTA. HHS has authority over health information privacy and security under the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH), but not under FACTA.

References: 1: Disposing of Consumer Report Information? Rule Tells How 2: FTC Enforcement 3: CFPB Enforcement 4: OCC Enforcement 5: FDIC Enforcement : [FRB Enforcement] : [NCUA Enforcement] : [SEC Enforcement] : [CFTC Enforcement] : [HHS Enforcement]

The Federal Trade Commission Act (FTCA) was adopted in 1914 as part of the Progressive Era reforms that aimed to curb the power and influence of monopolies and trusts in the U.S. economy. The FTCA created the Federal Trade Commission (FTC) as an independent agency to investigate and prevent unfairmethods of competition and unfair or deceptive acts or practices in or affecting commerce. The FTCA also gave the FTC the authority to issue cease and desist orders, seek injunctions, and impose civil penalties for violations of the law. The FTCA was intended to complement and supplement the existing antitrust laws, such as the Sherman Act and the Clayton Act, that prohibited restraints of trade, price-fixing, mergers, and other anticompetitive conduct.

The other options are not correct, because:

The FTCA did not explicitly address privacy rights of U.S. citizens, although the FTC later used its authority under the FTCA to enforce against unfair or deceptive privacy practices, such as making false or misleading claims, failing to disclose material information, or violating consumers’ choices or expectations regarding their personal data.

The FTCA did not specifically focus on consumer protection, although the FTC later expanded its scope to include consumer protection issues, such as advertising and marketing, credit and finance, privacy and security, and consumer education. The FTC also enforced other consumer protection laws, such as the Truth in Lending Act, the Fair Credit Reporting Act, the Children’s Online Privacy Protection Act, and the CAN-SPAM Act.

The FTCA did not authorize the FTC to negotiate consent decrees with companies violating personal privacy, although the FTC later used consent decrees as a common tool to settle privacy cases and impose remedial measures, such as audits, reports, and compliance programs. Consent decrees are agreements between the FTC and the parties involved in a case that resolve the FTC’s charges without admitting liability or wrongdoing.

References:

FTC website, Federal Trade Commission Act

Britannica website, Federal Trade Commission Act (FTCA)

IAPP CIPP/US Study Guide, Chapter 1: Introduction to the U.S. Privacy Environment, pp. 11-12

IAPP website, Federal Trade Commission Act, Section 5 of

A private right of action is a legal provision that grants individuals the ability to bring a lawsuit against a party that has wronged them and to seek redress for the harm that they have suffered. A private right of action is a fundamental component of the U.S. judicial system and an essential element of enforcingprivacy rights. Privacy advocates argue that a private right of action is necessary to hold perpetrators of privacy violations accountable and to address the limitations of the FTC’s enforcement authority. However, businesses are concerned that a private right of action would lead to a proliferation of frivolous lawsuits that would burden responsible data processors and impede innovation. References:

U.S. Private-Sector Privacy, Third Edition by Peter P. Swire, DeBrae Kennedy-Mayo, Chapter 2, Section 2.3.3, pp. 35-36.

How to end the deadlock on the private right of action by Paula Bruening, IAPP Privacy Perspectives, Jan 20, 2022.

Private Right of Action (Legal Definition & Examples) by Lawrina, accessed on Jan 25, 2022.

The Telemarketing Sales Rule (TSR) is a federal regulation that implements the Telemarketing and Consumer Fraud and Abuse Prevention Act of 1994. The TSR aims to protect consumers from deceptive or abusive telemarketing practices, such as unwanted calls, false or misleading claims, unauthorized billing, and privacy violations1.

The TSR requires telemarketers and sellers to comply with the National Do Not Call Registry, which is a list of phone numbers of consumers who have indicated that they do not want to receive telemarketing calls2.

The TSR also requires telemarketers and sellers to honor the do-not-call requests of individual consumers, regardless of whether their numbers are on the National Do Not Call Registry or not2.

A do-not-call request is a statement made by a consumer, either orally or in writing, that they do not wish to receive any more calls from a specific telemarketer or seller2.

The TSR requires an entity to share a do-not-call request across its organization when the operational structures of its divisions are not transparent to consumers3. This means that the entity must treat the do-not-call request as if it applies to all of its affiliates and subsidiaries that engage in telemarketing, unless the consumer would reasonably expect them to be separate and distinct entities based on their names, products, or services3.

The TSR does not require an entity to share a do-not-call request across its organization in the following situations:

When the goods and services sold by its divisions are very similar. This is not a relevant factor for determining whether the entity must share a do-not-call request across its organization. The key factor is whether the consumers can distinguish between the different divisions based on their operational structures3.

When a call is not the result of an error or other unforeseen cause. This is not an exception to the requirement to honor a do-not-call request. The TSR prohibits telemarketers and sellers from calling a consumer who has made a do-not-call request, unless the call falls under one of the specific exemptions, such as calls from or on behalf of tax-exempt nonprofit organizations, calls to consumers with whom the seller has an established business relationship, or calls to consumers who have given prior express written consent2.

When the entity manages user preferences through multiple platforms. This is not an excuse for not sharing a do-not-call request across its organization. The TSR requires telemarketers and sellers to maintain an internal do-not-call list of consumers who have asked them not to call again, and to update the list at least once every 31 days2. The entity must ensure that the do-not-call request is recorded and communicated across all of its platforms that are used for telemarketing purposes3.

References: 1: Telemarketing Sales Rule 2: Q&A for Telemarketers & Sellers About DNC Provisions in TSR 3: Federal Register :: Telemarketing Sales Rule

Privacy by Design is a concept that the FTC endorsed in its 2012 report on protecting consumer privacy1. It seeks to deliver the maximum degree of privacy by ensuring that personal data are automatically protected in any given IT system or business practice2. It asserts that data held by an organization ultimately belongs to the consumer and organizations should ensure that data subjects are properly informed about how their data is collected and used3. Privacy by Design requires companies to build in consumers’ privacy protections at every stage in developing their products, including reasonable security for consumer data, limited collection and retention of such data, and reasonable procedures to promote data accuracy1. References: 1: FTC Report of 2012, p. 22-23; 2: Global Data Review3; 3: Termly4.

A company that develops a privacy policy with standards that are much higher than its competitors may face the risk of being more closely scrutinized for any breaches of policy by regulators, customers, media, or other stakeholders. This is because the company sets a higher expectation for its privacy practices and may be held to a higher standard of accountability and transparency. If the company fails to comply with its own policy or experiences a data breach, it may face more severe consequences, such as reputational damage, loss of trust, legal liability, or regulatory sanctions. References:

IAPP CIPP/US Body of Knowledge, Section I, B, 2

[IAPP CIPP/US Study Guide, Chapter 1, Section 1.4]

Phishing is a form of social engineering that involves sending fraudulent emails or other messages that appear to come from a legitimate source, but are designed to trick recipients into revealing sensitive information, such aspasswords, account numbers, or personal identifiers1. Phishing is one of the most common and effective methods of cyberattacks, and it can lead to data breaches, identity theft, ransomware infections, or other serious consequences2. Therefore, training on how to recognize and avoid phishing attempts is crucial for any organization that handles sensitive data, especially ePHI, which is subject to strict regulations under HIPAA3. Training on techniques for identifying phishing attempts can help employees to spot the signs of a phishing email, such as:

Sender’s address or domain name that does not match the expected source or contains spelling errors4

Generic salutations or impersonal tone that do not address the recipient by name or use proper grammar4

Urgent or threatening language that creates a sense of pressure or fear and asks the recipient to take immediate action, such as clicking on a link, opening an attachment, or providing information4

Suspicious links or attachments that may contain malware or lead to fake websites that mimic the appearance of a legitimate site, but have a different URL or request login credentials or other data4

Requests for sensitive information that are unusual or out of context, such as asking for passwords, account numbers, or personal identifiers that the sender should already have or should not need4

Training on techniques for identifying phishing attempts can also help employees to learn how to respond to a phishing email, such as:

Not clicking on any links or opening any attachments in the email4

Not replying to the email or providing any information to the sender4

Reporting the email to the IT department or security team and deleting it from the inbox4

Verifying the legitimacy of the email by contacting the sender directly using a different channel, such as phone or another email address4

Updating the antivirus software and scanning the device for any malware infection4

Training on techniques for identifying phishing attempts is the most effective kind of training that CloudHealth could have given its employees to help prevent this type of data breach, because it would have enabled them to recognize the phishing email that compromised the PHI of more than 10,000 HealthCo patients, and to avoid falling victim to it. Training on the terms of the contractual agreement with HealthCo, the difference between confidential and non-public information, or CloudHealth’s HR policy regarding the role of employees involved in data breaches, while important, would not have been as effective in preventing this specific type of data breach, because they would not have addressed the root cause of the breach, which was the phishing email.

References:

1: IAPP, Phishing, https://iapp.org/resources/glossary/phishing/

2: SpinOne, The Top 5 Phishing Awareness Training Providers 2023, https://spinbackup.com/blog/phishing-awareness-training-best-providers/

3: IAPP, HIPAA, https://iapp.org/resources/glossary/hipaa/

4: Expert Insights, The Top 11 Phishing Awareness Training and Simulation Solutions, https://expertinsights.com/insights/the-top-11-phishing-awareness-training-and-simulation-solutions/

The Department of Commerce (DOC) plays a role in privacy policy by promoting the development and adoption of voluntary codes of conduct, standards, and best practices for the private sector, as well as facilitating cross-border data transfers through mechanisms such as the EU-U.S. Privacy Shield and the APEC Cross-Border Privacy Rules. However, the DOC does not have regulatory authority to enforce privacy laws or impose sanctions for privacy violations. The other agencies listed have some degree of regulatory authority over privacy issues within their respective domains. For example, the Office of the Comptroller of the Currency (OCC) supervises national banks and federal savings associations and enforces the GLBA privacy and security rules for these institutions. The Federal Communications Commission (FCC) regulates interstate and international communications and enforces the privacy and security rules for telecommunications carriers, broadband providers, and voice over internet protocol (VoIP) services. The Department of Transportation (DOT) oversees the transportation sector and enforces the privacy and security rules for airlines, travel agents, and other covered entities under the Aviation and Transportation Security Act (ATSA). References:

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1: Introduction to the U.S. Privacy Environment, Section 1.3: Federal Agencies with a Role in Privacy, p. 18-19

IAPP CIPP/US Body of Knowledge, Domain I: Introduction to the U.S. Privacy Environment, Objective I.B: Identify the major federal agencies with a role in privacy, Subobjective I.B.4: Identify the role of the Department of Commerce, p. 7

IAPP CIPP/US Exam Blueprint, Domain I: Introduction to the U.S. Privacy Environment, Objective I.B: Identify the major federal agencies with a role in privacy, Subobjective I.B.4: Identify the role of the Department of Commerce, p. 3

The Wireless Domain Registry is a list of domain names that are used to transmit electronic messages to wireless devices, such as cell phones and pagers. The purpose of the registry is to protect wireless consumers from unwanted commercial electronic mail messages, by identifying the domain names for those who send such messages. Marketers are required to use the registry to avoid sending unsolicited emails to wireless devices, which may incur costs or inconvenience for the recipients. Sending such emails without the express prior authorization of the recipient is a violation of the CAN-SPAM Act of 2003. References: https://www.fcc.gov/cgb/policy/domain-name-input

https://www.prnewswire.com/in/news-releases/the-wireless-registry-launches-worlds-first-global-registry-for-wireless-names-240222521.html

The Colorado Privacy Act (CPA) grants consumers the right to access, correct, or delete their personal data, including sensitive data, that is processed by a controller1. Sensitive data is defined as personal data that reveals racial or ethnic origin, religious beliefs, mental or physical health condition or diagnosis, sex life or sexual orientation, citizenship or citizenship status, genetic or biometric data, or personal data from a known child2. The CPA also grants consumers the right to opt out of the processing of their personal data for purposes of targeted advertising, the sale of personal data, or certain kinds of profiling3. However, the CPA does not grant consumers the right to limit the use of sensitive data for other purposes, such as providing a product or service requested by the consumer, complying with legal obligations, or protecting the vital interests of the consumer or another person. Therefore, option D is the correct answer, as it is not a privacy right available under the CPA. References: 1: Colorado Privacy Act (CPA) - Colorado Attorney General 2: Protect Personal Data Privacy | Colorado General Assembly 3: SENATE BILL 21-190 Woodward, Garcia; PRIVACY. COLORADO PRIVACY ACT … : Colorado Privacy Act: What You Need to Know | OneTrust DataGuidance

Data flow diagrams are graphical representations of how data moves within an organization or between different entities. They can help identify the sources, destinations, and processing of personal data, as well as the legal basis, retention periods, and security measures for each data flow. Reviewing the available data flow diagrams can help the data privacy leader to quickly and accurately respond to the urgent request from the EU-based retail partner, as well as to assess the potential risks and compliance gaps in the data transfer process. Data flow diagrams are also a key component of data protection impact assessments (DPIAs), which are required by the GDPR for high-risk processing activities. References:

IAPP CIPP/US Body of Knowledge, Section II, A, 2

[IAPP CIPP/US Study Guide, Chapter 2, Section 2.3]

[GDPR, Article 35]

The CCPA provides consumers with a private right of action to pursue statutory damages following data security breaches that impact certain sensitive categories of personal information and are caused by a business’s failure to institute reasonable and appropriate security. The CCPA defines personal information for this purpose as an individual’s name in combination with any of the following: social security number, driver’s license number, account number, credit or debit card number, medical information, or health insurance information. The CCPA allows consumers to seek damages between $100 and $750 per consumer per incident, or actual damages, whichever is greater. The CCPA also requires consumers to provide the business with 30 days’ written notice and an opportunity to cure the violation before initiating an action. Additionally, the CCPA requires consumers to notify the Attorney General within 30 days of filing the action and obtain the Attorney General’s approval or nonobjection before proceeding with the action. Therefore, John can sue the corporation for the data breach to recover monetary damages suffered as a result of the data breach, and in some circumstances seek statutory damages irrespective of whether he suffered any financial harm, as long as he meets the requirements of the CCPA. References:

CCPA Provides Private Right of Action for Data Security Breaches

CCPA Private Right of Action – Data Breach Security Requirement

CCPA Fines & Penalties for Data Protection Violations | MatrixPoint

The false statement regarding the provisions of the EPPA is C. Employers are prohibited from administering psychological testing based on personality traits such as honesty, preferences or habits. The EPPA does not regulate psychological testing, only polygraph testing. Psychological testing is a broad term that covers various types of assessments that measure cognitive abilities, personality traits, interests, values, and skills. Employers may use psychological testing for various purposes, such as hiring, promotion, training, or development, as long as they comply with other laws and regulations, such as the Americans with Disabilities Act (ADA), the Equal Employment Opportunity Commission (EEOC) guidelines, and the Uniform Guidelines on Employee Selection Procedures. However, employers should be careful to ensure that thepsychological tests they use are valid, reliable, job-related, and nondiscriminatory, and that they respect the privacy and dignity of the test takers. References:

[IAPP CIPP/US Study Guide], Chapter 4: Workplace Privacy, pp. 115-116.

IAPP CIPP/US Body of Knowledge, Section IV: Workplace Privacy, Subsection A: Employee Privacy Expectations, Topic 2: Employee Polygraph Protection Act.

IAPP CIPP/US Practice Questions, Question 142.

The HIPAA Security Rule requires covered entities and their business associates to implement three types of safeguards to protect the confidentiality, integrity, and availability of electronic protected health information (ePHI): administrative, physical, and technical1. Security safeguards is not a separate category of safeguards, but rather a general term that encompasses all three types. Therefore, it is not a correct answer to the question.

Administrative safeguards are the policies and procedures that govern the conduct of the workforce and the security measures put in place to protect ePHI. They include risk analysis and management, training, contingency planning, incident response, and evaluation12.

Physical safeguards are the locks, doors, cameras, and other physical measures that prevent unauthorized access to ePHI. They include workstation and device security, locks and keys, and disposal of media12.

Technical safeguards are the software and hardware tools that protect ePHI from unauthorized access, alteration, or destruction. They include access control, encryption, audit controls, integrity controls, and transmission security12.

In the scenario, HealthCo’s actions have potentially violated all three types of safeguards. For example:

HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth’s security measures. This could be a breach of the administrative safeguard of risk analysis and management12.

HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. This could be a breach of the technical safeguard of encryption12.

HealthCo provides its investigative report of the breach and a copy of the PHI of the individuals affected to law enforcement. This could be a breach of the physical safeguard of disposal of media, if HealthCo did not ensure that the media was properly erased or destroyed after the transfer12.

References: 1: Summary of the HIPAA Security Rule, HHS.gov. 2: What is the HIPAA Security Rule? Safeguards … - Secureframe, Secureframe.com.

When selecting a vendor to manage personal information, the company should consider various criteria, such as the vendor’s reputation, financial health, employee training program, privacy policies, security practices, compliance record, contractual terms, and service quality. However, the vendor’s employee retention rates may not be as important as the other factors, as they do not directly affect the vendor’s ability to protect and process the personal information entrusted to them. While high employee turnover may indicate some issues with the vendor’s management or culture, it may not necessarily impact the vendor’s performance or reliability, as long as the vendor has adequate measures to ensure continuity, accountability, and confidentiality of the personal information they handle. References:

Vendor Selection Process: a Step-by-Step Guide, section “Step 2: Define the vendor selection criteria”

[IAPP CIPP/US Study Guide], p. 81-82, section 3.4.1

[IAPP CIPP/US Body of Knowledge], p. 18-19, section C.2.a

The U.S. Wiretap Act prohibits the interception and disclosure of wire, oral, or electronic communications, unless one of the statutory exceptions applies. One of these exceptions is the ordinary course of business exception, which allows an employer or service provider to intercept communications that are made in the ordinary course of its business, such as for quality control, training, or security purposes. This exception does not apply to communications that are not related to the business, such as personal calls or emails, or to communications that are intercepted for other reasons, such as harassment, discrimination, or retaliation. The scope and applicability of this exception may vary depending on the context, the consent of the parties, and the state law. The other options are not valid exceptions under the Wiretap Act. References: 1, 2, 3, 4

The Consumer Financial Protection Bureau (CFPB) has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA), as well as other consumer financial laws. The Dodd-Frank Act, enacted in 2010, transferred most of the rulemaking responsibilities added to the FCRA by the FACTA and the Credit CARD Act from the Federal Trade Commission (FTC) to the CFPB. However, the FTC retains its enforcement authority for the FCRA and the FACTA, along with other federal and state agencies1. The CFPB also shares rulemaking authority for some provisions of the FACTA with the FTC, such as the identity theft red flags and address discrepancy rules2. The Department of Commerce and the State Attorneys General do not have rulemaking authority for the FCRA or the FACTA. References: 1: FTC3, Fair Credit Reporting Act; 2: CFPB4, Fair Credit Reporting Act; 3: FTC; 4: CFPB.

 Discrimination is the unfair or prejudicial treatment of people based on certain characteristics, such as race, gender, age, religion, or political affiliation. Discrimination can occur in various contexts, such as employment, education, housing, or public accommodations. Discrimination can violate federal, state, or local laws that prohibit discrimination on the basis of protected categories. In the scenario, Evan is susceptible to a lawsuit based on discrimination because he uses social media to favor employees who share his political views and deny promotions to those who do not. This could constitute political discrimination, which is prohibited by some state and local laws, such as the District of Columbia Human Rights Act and the New York City Human Rights Law. Additionally, Evan’s use of social media could reveal other protected characteristics of his employees, such as their race, gender, age, religion, or sexual orientation, and expose him to claims of discrimination based on those grounds as well. For example, if Evan posts derogatory comments about a certain race or religion, and then denies a promotion to an employee of that race or religion, that employee could sue Evan for discrimination under federal laws, such as Title VII of the Civil Rights Act of 1964 or the Civil Rights Act of 1991. References:

Political Discrimination in the Workplace | Nolo

Social Media and Employment Law Summary of Key Cases and Legal Issues

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 4: State Privacy Laws and Regulations, Section 4.1: State Anti-Discrimination Laws.

 FACTA added a new section to the FCRA that requires any person who maintains or otherwise possesses consumer information, or any compilation of consumer information, derived from consumer reports for a business purpose, to properly dispose of any such information or compilation. The purpose of this provision is to reduce the risk of identity theft and other consumer harm resulting from improper disposal of consumer information. The FTC and other federal agencies have issued rules implementing this provision, which specify the reasonable measures that covered entities must take to ensure secure disposal of consumer information, such as burning, pulverizing, shredding, erasing, or otherwise modifying the information to make it unreadable or indecipherable (16 CFR § 682.3). References: 1, 2, 3

In 2012, the White House released a report titled “Consumer Data Privacy in a Networked World: A Framework for Protecting Privacy and Promoting Innovation in the Global Digital Economy”, which proposed a Consumer Privacy Bill of Rights based on the Fair Information Practice Principles (FIPPs). The report called for a comprehensive privacy framework that would apply to all commercial sectors and all personal data, regardless of the technology or business model involved. The report also urged Congress to enact legislation to implement the framework and empower the FTC to enforce it. Similarly, the FTC released a report titled “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers”, which outlined a set of best practices for businesses to protect consumer privacy and foster innovation. The report also advocated for a comprehensive privacy framework that would cover both online and offline data, and apply to all entities that collect or use consumer data that can be reasonably linked to a specific consumer, computer, or device. The report also recommended that Congress consider enacting baseline privacy legislation and giving the FTC rulemaking authority to implement it. Therefore, both reports can be described as advocating a comprehensive approach to privacy enforcement, rather than a harm-based, self-regulatory, or notice and choice approach. References: White House Report, FTC Report, IAPP CIPP/US Study Guide (p. 31-32)