Which of the following entities would most likely be exempt from complying with the GDPR?
A. A South American company that regularly collects European customers' personal data.
B. A company that stores all customer data in Australia and is headquartered in a European Union (EU) member state.
C. A Chinese company that has opened a satellite office in a European Union (EU) member state to service European customers.
D. A North American company servicing customers in South Africa that uses a cloud storage system made by a European company.
SCENARIO
Please use the following to answer the next question:
WonderkKids provides an online booking service for childcare. Wonderkids is based in France, but hosts its website through a company in Switzerland. As part of their service, WonderKids will pass all personal data provided to them to the childcare provider booked through their system. The type of personal data collected on the website includes the name of the person booking the childcare, address and contact details, as well as information about the children to be cared for including name, age, gender and health information. The privacy statement on Wonderkids' website states the following:
"WonderkKids provides the information you disclose to us through this website to your childcare provider for scheduling and health and safety reasons. We may also use your and your child's personal information for our own legitimate business purposes and we employ a third-party website hosting company located in Switzerland to store the data. Any data stored on equipment located in Switzerland meets the European Commission provisions for guaranteeing adequate safeguards for you and your child's personal information. We will only share you and your child's personal information with businesses that we see as adding real value to you. By providing us with any personal data, you consent to its transfer to affiliated businesses and to send you promotional offers."
"We may retain you and your child's personal information for no more than 28 days, at which point the data will be depersonalized, unless your personal information is being used for a legitimate business purpose beyond 28 days where it may be retained for up to 2 years."
"We are processing you and your child's personal information with your consent. If you choose not to provide certain information to us, you may not be able to use our services. You have the right to: request access to
you and your child's personal information; rectify or erase you or your child's personal information; the right to correction or erasure of you and/or your child's personal information; object to any processing of you and your child's personal information. You also have the right to complain to the supervisory authority about our data processing activities."
What additional information must Wonderkids provide in their Privacy Statement?
A. How often promotional emails will be sent.
B. Contact information of the hosting company.
C. Technical and organizational measures to protect data.
D. The categories of recipients with whom data will be shared.
SCENARIO
Please use the following to answer the next question:
Joe started the Gummy Bear Company in 2000 from his home in Vermont, USA. Today, it is a multi-billion-dollar candy company operating in every continent. All of the company's IT servers are located in Vermont. This year Joe hires his son Ben to join the company and head up Project Big, which is a major marketing strategy to triple gross revenue in just 5 years. Ben graduated with a PhD in computer software from a top university. Ben decided to join his father's company, but is also secretly working on launching a new global online dating website company called Ben Knows Best.
Ben is aware that the Gummy Bear Company has millions of customers and believes that many of them might also be interested in finding their perfect match. For Project Big, Ben redesigns the company's online web portal and requires customers in the European Union and elsewhere to provide additional personal information in order to remain a customer. Project Ben begins collecting data about customers' philosophical beliefs, political opinions and marital status.
If a customer identifies as single, Ben then copies all of that customer's personal data onto a separate database for Ben Knows Best. Ben believes that he is not doing anything wrong, because he explicitly asks each customer to give their consent by requiring them to check a box before accepting their information. As Project Big is an important project, the company also hires a first year college student named Sam, who is studying computer science to help Ben out.
Ben calls out and Sam comes across the Ben Knows Best database. Sam is planning on going to Ireland over Spring Beak with 10 of his friends, so he copies all of the customer information of people that reside in Ireland so that he and his friends can contact people when they are in Ireland.
Joe also hires his best friend's daughter, Alice, who just graduated from law school in the US., to be the company's new General Counsel. Alice has heard about the GDPR, so she does some research on it. Alice approaches Joe and informs him that she has drafted up Binding Corporate Rules for everyone in the company to follow, as it is important for the company to have in place a legal mechanism to transfer data internally from the company's operations in the European Union to the U.S. Joe believes that Alice is doing a great job, and informs her that she will also be in-charge of handling a major lawsuit that has been brought against the company in federal court in the U.S. To prepare for the lawsuit, Alice instructs the company's IT department to make copies of the computer hard drives from the entire global sales team, including the European Union, and send everything to her so that she can review everyone's information. Alice believes that Joe will be happy that she did the first level review, as it will save the company a lot of money that would otherwise be paid to its outside law firm. In preparing the company for its impending lawsuit, Alice's instruction to the company's IT Department violated Article 5 of the GDPR because the company failed to first do what?
A. Send out consent forms to all of its employees.
B. Minimize the amount of data collected for the lawsuit.
C. Inform all of its employees about the lawsuit.
D. Encrypt the data from all of its employees.
According to Article 84 of the GDPR, the rules on penalties applicable to infringements shall be laid down by?
A. The local Data Protection Supervisory Authorities.
B. The European Data Protection Board.
C. The EU Commission.
D. The Member States.
Which statement provides an accurate description of a directive?
A. A directive specifies certain results that must be achieved, but each member state is free to decide how to turn it into a national law.
B. A directive has binding legal force throughout every member state and enters into force on a set date in all the member states.
C. A directive is a legal act relating to specific cases and directed towards member states, companies or private individuals.
D. A directive is a legal act that applies automatically and uniformly to all EU countries as soon as it enters into force.
Which aspect of processing does the GDPR allow processors to determine for themselves?
A. The question of whether the controller needs to be informed about the substitution of another processor carrying out specific processing activities on behalf of the controller.
B. Their own purposes for the processing, if such purposes are compatible with those for which the personal data were initially collected.
C. The parameters of their marketing campaigns using personal data relating to the controller's customers.
D. Their own type of hardware or software and the specific security measures for the processing.
According to guidance from the European Data Protection Board, in which of the following cases would a controller established outside of the EU not be subject to the GDPR?
A. If the controller monitors the behavior of persons on the territory of the Republic of Switzerland.
B. If the controller has a fully-owned branch office in the EU overseeing all its European operations, including marketing and advertising.
C. If the controller has its some of its offices and servers based in the EU without having a legal branch or subsidiary in any EU Member State.
D. If the controller uses the services of an EU-based processor without offering goods or services to persons on EU territory or monitoring their behavior.
SCENARIO
Please use the following to answer the next question:
CreditPlaya, SA is an established Spanish online insurance company whose exclusive activity is providing health insurance for legal residents of Spain, regardless of their nationality.
CreditPlaya autonomously manages its own website, through which a potential customer, engaging in a free pre-contractual activity, enters his or her full name, e-mail address, tax identification number (to verify residence in Spain), age,
profession, and the full names of any other adult members of his or her family.
With this data, CreditPlaya immediately sends an email granting or denying eligibility for a health insurance policy. In the case of eligibility, the email also contains the eventual cost of the policy and two PDF documents – one with the contractual Terms and Conditions, and the other with the privacy notice as required by Article 13 of the GDPR. The CreditPlaya Information Tracking System (ITS) is very efficient, with a low rate of unpaid insurance policies. The ITS is automatically fed by the information provided by every applicant, whose data is then used to refine insurance policy
rates.
To ensure their back-up procedures, in January 2021 CreditPlaya started sending weekly copies of the whole database with all the applicants' personal data to an independent company in Uruguay. The information was sent through state-ofthe-art encrypting tools, but once in Uruguay was stored without any encryption method. In March 2022, the entire data base stored on the Uruguay's company servers was encrypted by malicious ransomware. There was no evidence that the data was accessed by unauthorized persons, much less altered or exfiltrated. Despite
the incident, CreditPlaya found that they could rely on the locally based Spanish back-up information and carry on its activity without interrupting its operations. The incident caused the termination of the professional relationship between the two companies.
According to the GDPR, current CreditPlaya customers who have expressly accepted the policy Terms and Conditions would NOT be granted which of the following rights?
A. The Right To Object.
B. The Right to Erasure.
C. The Right to Data Portability.
D. The Right Not to be Subject to Profiling.
SCENARIO
Please use the following to answer the next question:
CreditPlaya, SA is an established Spanish online insurance company whose exclusive activity is providing health insurance for legal residents of Spain, regardless of their nationality.
CreditPlaya autonomously manages its own website, through which a potential customer, engaging in a free pre-contractual activity, enters his or her full name, e-mail address, tax identification number (to verify residence in Spain), age,
profession, and the full names of any other adult members of his or her family.
With this data, CreditPlaya immediately sends an email granting or denying eligibility for a health insurance policy. In the case of eligibility, the email also contains the eventual cost of the policy and two PDF documents – one with the contractual Terms and Conditions, and the other with the privacy notice as required by Article 13 of the GDPR. The CreditPlaya Information Tracking System (ITS) is very efficient, with a low rate of unpaid insurance policies. The ITS is automatically fed by the information provided by every applicant, whose data is then used to refine insurance policy
rates.
To ensure their back-up procedures, in January 2021 CreditPlaya started sending weekly copies of the whole database with all the applicants' personal data to an independent company in Uruguay. The information was sent through state-ofthe-art encrypting tools, but once in Uruguay was stored without any encryption method. In March 2022, the entire data base stored on the Uruguay's company servers was encrypted by malicious ransomware. There was no evidence that the data was accessed by unauthorized persons, much less altered or exfiltrated. Despite
the incident, CreditPlaya found that they could rely on the locally based Spanish back-up information and carry on its activity without interrupting its operations. The incident caused the termination of the professional relationship between the two companies.
The disclosure of personal data to the independent company in Uruguay should be regulated by which of the following?
A. Binding Corporate Rules.
B. A controller/processor agreement.
C. An ad hoc authorization from the EU Commission.
D. An ad hoc authorization from the Spanish Data Protection Authority.
SCENARIO
Please use the following to answer the next question:
CreditPlaya, SA is an established Spanish online insurance company whose exclusive activity is providing health insurance for legal residents of Spain, regardless of their nationality.
CreditPlaya autonomously manages its own website, through which a potential customer, engaging in a free pre-contractual activity, enters his or her full name, e-mail address, tax identification number (to verify residence in Spain), age,
profession, and the full names of any other adult members of his or her family.
With this data, CreditPlaya immediately sends an email granting or denying eligibility for a health insurance policy. In the case of eligibility, the email also contains the eventual cost of the policy and two PDF documents – one with the contractual Terms and Conditions, and the other with the privacy notice as required by Article 13 of the GDPR. The CreditPlaya Information Tracking System (ITS) is very efficient, with a low rate of unpaid insurance policies. The ITS is automatically fed by the information provided by every applicant, whose data is then used to refine insurance policy
rates.
To ensure their back-up procedures, in January 2021 CreditPlaya started sending weekly copies of the whole database with all the applicants' personal data to an independent company in Uruguay. The information was sent through state-ofthe-art encrypting tools, but once in Uruguay was stored without any encryption method. In March 2022, the entire data base stored on the Uruguay's company servers was encrypted by malicious ransomware. There was no evidence that the data was accessed by unauthorized persons, much less altered or exfiltrated. Despite
the incident, CreditPlaya found that they could rely on the locally based Spanish back-up information and carry on its activity without interrupting its operations. The incident caused the termination of the professional relationship between the two companies.
The privacy notice provided by CreditPlaya contravenes Article 13 of the GDPR because?
A. The document is delivered after the personal data has been obtained.
B. The document is separated from the document listing Terms and Conditions.
C. The document is not written in the language of the average prospective customer.
D. The document fails to mention the applicable security measures for the processing.
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