SCENARIO
Please use the following to answer the next QUESTION:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
What is the main problem with Cheryl's suggested method of communicating the new privacy policy?
A. The policy would not be considered valid if not communicated in full.
B. The policy might not be implemented consistency across departments.
C. Employees would not be comfortable with a policy that is put into action over time.
D. Employees might not understand how the documents relate to the policy as a whole.
California's SB 1386 was the first law of its type in the United States to do what?
A. Require commercial entities to disclose a security data breach concerning personal information about the state's residents
B. Require notification of non-California residents of a breach that occurred in California
C. Require encryption of sensitive information stored on servers that are Internet connected
D. Require state attorney general enforcement of federal regulations against unfair and deceptive trade practices
Which of the following is NOT a principle found in the APEC Privacy Framework?
A. Integrity of Personal Information.
B. Access and Correction.
C. Preventing Harm.
D. Privacy by Design.
US. federal laws protect individuals from employment discrimination based on all of the following EXCEPT?
A. Age.
B. Pregnancy.
C. Marital status.
D. Genetic information.
Which of the following describes the most likely risk for a company developing a privacy policy with standards that are much higher than its competitors?
A. Being more closely scrutinized for any breaches of policy
B. Getting accused of discriminatory practices
C. Attracting skepticism from auditors
D. Having a security system failure
Under the Fair Credit Reporting Act (FCRA), what must a person who is denied employment based upon his credit history receive?
A. A prompt notification from the employer.
B. An opportunity to reapply with the employer.
C. Information from several consumer reporting agencies (CRAs).
D. A list of rights from the Consumer Financial Protection Bureau (CFPB).
Which action is prohibited under the Electronic Communications Privacy Act of 1986?
A. Intercepting electronic communications and unauthorized access to stored communications
B. Monitoring all employee telephone calls
C. Accessing stored communications with the consent of the sender or recipient of the message
D. Monitoring employee telephone calls of a personal nature
What practice do courts commonly require in order to protect certain personal information on documents, whether paper or electronic, that is involved in litigation?
A. Redaction
B. Encryption
C. Deletion
D. Hashing
Which of the following statements is most accurate in regard to data breach notifications under federal and state laws:
A. You must notify the Federal Trade Commission (FTC) in addition to affected individuals if over 500 individuals are receiving notice.
B. When providing an individual with required notice of a data breach, you must identify what personal information was actually or likely compromised.
C. When you are required to provide an individual with notice of a data breach under any state's law, you must provide the individual with an offer for free credit monitoring.
D. The only obligations to provide data breach notification are under state law because currently there is no federal law or regulation requiring notice for the breach of personal information.
If an organization certified under Privacy Shield wants to transfer personal data to a third party acting as an agent, the organization must ensure the third party does all of the following EXCEPT?
A. Uses the transferred data for limited purposes
B. Provides the same level of privacy protection as the organization
C. Notifies the organization if it can no longer meet its requirements for proper data handling
D. Enters a contract with the organization that states the third party will process data according to the consent agreement
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