Free IAPP CIPP-E Practice Exam with Questions & Answers | Set: 4

According to Article 37(2) of the GDPR, a group of undertakings may appoint a single data protection officer (DPO) provided that the DPO is easily accessible from each establishment12. This means that the DPO should be able to communicate effectively with the data subjects and the supervisory authorities in the relevant languages and jurisdictions, and to perform the tasks referred to in Article 39 of the GDPR34. The accessibility of the DPO does not necessarily depend on the physical location of the DPO, but rather on the availability of the DPO to the relevant stakeholders via various means of communication34. Therefore, the DPO does not have to be located in the country where the data controller has its main establishment, nor does the group of undertakings have to obtain approval from a supervisory authority or be comprised of organizations of similar sizes and functions to appoint a single DPO. References: CIPP/E Certification - International Association of Privacy Professionals, Free CIPP/E Study Guide - International Association of Privacy Professionals, GDPR - EUR-Lex, What’s different about a group data protection officer?, Data Protection Officers: What US Companies Need to Know - Cooley

The General Data Protection Regulation (GDPR) introduces several obligations for processors who process personal data on behalf of controllers. These obligations apply to any processing of personal data in the context of the activities of an establishment of a controller or a processor in the EU, regardless of whether the processing takes place in the EU or not. The GDPR also applies to the processing of personal data of data subjects who are in the EU by a controller or processor not established in the EU, where the processing activities are related to the offering of goods or services to data subjects in the EU or the monitoring of their behaviour as far as their behaviour takes place within the EU.

The GDPR’s list of processor obligations regarding cloud computing includes all of the following:

Controllers must be given notice of any subprocessors and have a right of objection. According to Article 28 of the GDPR, a processor shall not engage another processor without prior specific or general written authorisation of the controller. In the case of general written authorisation, the processor shall inform the controller of any intended changes concerning the addition or replacement of other processors, thereby giving the controller the opportunity to object to such changes.

Individuals authorized to process the personal data are subject to an obligation of confidentiality. According to Article 28 of the GDPR, the processor shall ensure that persons authorised to process the personal data have committed themselves to confidentiality or are under an appropriate statutory obligation of confidentiality.

Processors must implement technical and organizational measures to ensure a level of security appropriate to the risk. According to Article 32 of the GDPR, the processor shall implement appropriate technical and organisational measures to ensure a level of security appropriate to the risk, taking into account the state of the art, the costs of implementation and the nature, scope, context and purposes of processing as well as the risk of varying likelihood and severity for the rights and freedoms of natural persons.

The GDPR’s list of processor obligations regarding cloud computing does not include the following:

Any personal data related to data subjects must be securely maintained for a maximum of ten years. The GDPR does not specify a precise time limit for the storage of personal data, but leaves it to the controller to determine the appropriate retention period, taking into account the nature, scope, context and purposes of the processing, as well as the risks for the rights and freedoms of data subjects. The GDPR also allows for the further storage of personal data for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes, subject to appropriate safeguards. Therefore, the processor must follow the instructions of the controller regarding the storage duration of the personal data, and delete or return the personal data to the controller after the end of the provision of services relating to the processing, unless required to store the personal data by Union or Member State law.

References:

GDPR, Articles 3, 4, 28, 29, 32, 51, 55, 56, 57, 58, 60, 61, 62, 63, 64, 65, 66, 67, and 68.

EDPB Guidelines 07/2020 on the concepts of controller and processor in the GDPR, pages 19, 20, 21, 22, 23, 24, 25, 26, 27, and 28.

Cloud Computing and GDPR: what you need to know | Combell, paragraphs 1, 2, 3, 4, 5, 6, 7, and 8.

GDPR Processor Obligations - Taylor Wessing, paragraphs 1, 2, 3, 4, 5, 6, 7, and 8.

Before Anna determines whether Frank’s performance database is permissible, she needs to know more information about the following aspects of the data processing:

The purpose and legal basis of the data processing, which should be clearly defined and documented in a data protection impact assessment (DPIA) or a similar document12.

The nature and extent of the personal data involved, which should be limited to what is necessary for the purpose and not retained longer than necessary12.

The measures taken to ensure the security and confidentiality of the personal data, such as encryption, pseudonymization, access control, etc12.

The rights and interests of the data subjects, such as their right to access, rectify, erase or restrict their personal data, as well as their right to object or withdraw consent12.

The potential risks and consequences of the data processing for the rights and freedoms of the data subjects, such as identity theft, discrimination, reputational damage, etc12.

In this case, Anna needs to know more information about what students have been told and how the research will be used. This is because:

The purpose of using student records for research purposes is not clear from Frank’s description. He does not specify whether he has obtained consent from the students or their parents/guardians, or whether he has informed them about his research objectives and methods.

The nature and extent of using student records for research purposes is not clear from Frank’s description. He does not specify which student records he is using (e.g., by name or by reference number), how many records he is using (e.g., by cohort or by class), or how long he will keep them (e.g., until graduation or indefinitely).

The measures taken to ensure the security and confidentiality of using student records for research purposes are not clear from Frank’s description. He does not specify whether he has encrypted his program or his laptop before transferring it to his home device, whether he has backed up his program or his laptop before losing it on the train, or whether he has reported his lost laptop to his IT department.

Therefore, Anna needs more information about these aspects before she can determine whether Frank’s performance database is permissible under the GDPR.

References: 1: Free CIPP/E Study Guide - International Association of Privacy Professionals 2: CIPP/E Certification - International Association of Privacy Professionals

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

The other options are incorrect because:

A. Protection of the interests of the data subjects is not a legal basis for processing personal data, but rather a condition for processing special categories of personal data under Article 9 of the GDPR2. Moreover, fraud prevention does not necessarily protect the interests of the data subjects, but rather the interests of the online shop and the general public.

B. Performance of a contract is a legal basis for processing personal data that is necessary for the execution or fulfilment of a contract between the data controller and the data subject2. However, fraud prevention is not strictly necessary for the performance of a contract, as it is not directly related to the delivery of goods or services that the data subject has purchased from the online shop.

D. Consent is a legal basis for processing personal data that requires the data subject to give their informed, specific, and freely given agreement to the processing of their data for one or more purposes2. However, consent is not the most appropriate legal basis for fraud prevention, as it may not be freely given by the data subject, who may feel pressured to agree to the processing of their data in order to complete their purchase. Moreover, consent may not be reliable or effective for fraud prevention, as it can be withdrawn by the data subject at any time, or may be given by a fraudster who is not the legitimate owner of the data.

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

 According to the GDPR, the lead supervisory authority (LSA) is the one located in the EU member state where the controller or processor has its main establishment or single establishment. The main establishment is the place where the decisions on the purposes and means of the processing of personal data are taken. In this case, the SaaS service was defined and implemented by the Polish establishment, so the decisions on the processing of personal data for this service are taken in Poland. Therefore, the LSA for the SaaS service is the supervisory authority of the Republic of Poland.

References:

GDPR Article 4(16): Definition of main establishment

GDPR Article 56: Competence of the lead supervisory authority

GDPR Recital 36: Determination of the main establishment

IAPP CIPP/E Study Guide, Chapter 5, Section 5.1: Lead Supervisory Authority

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

The use of cookies or similar technologies to store or access information on the user’s device (Regulation 6).

The sending of electronic mail for direct marketing purposes to individual subscribers who have not given their prior consent (Regulation 22).

The making of unsolicited calls for direct marketing purposes to individual subscribers who have registered their number with the Telephone Preference Service or who have objected to such calls from a specific caller (Regulation 21).

The sending of unsolicited communications for direct marketing purposes by means of electronic mail, fax, or automated calling systems to corporate subscribers, unless they have indicated that they do not wish to receive such communications (Regulation 23).

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

References:

PECR

e-privacy Directive

ICO guide to PECR

 According to Article 14 of the GDPR, when a controller collects personal data from a source other than the data subject, the controller must provide the data subject with certain information, such as the identity and contact details of the controller, the purposes and legal basis of the processing, the categories of personal data concerned, the recipients or categories of recipients of the personal data, and the rights of the data subject. This information must be provided within a reasonable period after obtaining the personal data, but at the latest within one month, or at the time of the first communication with the data subject, or before disclosing the data to another recipient. The purpose of this provision is to ensure fair and transparent processing of personal data and to respect the right of the data subject to be informed. References:

Article 14 of the GDPR, which specifies the information to be provided where personal data have not been obtained from the data subject.

ICO guidance, which explains the requirements and exceptions of Article 14 of the GDPR.

EDPB guidelines, which provide further guidance on the application of Article 14 of the GDPR.

 According to the CIPP/E study guide, the Data Protection Law Enforcement Directive (LED) is a piece of EU legislation that ensures the protection of personal data of individuals involved in criminal proceedings, be it as witnesses, victims or suspects1. The LED applies to the processing of personal data by competent authorities for the purposes of the prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties2. Article 4 of the LED sets out the principles relating to the processing of personal data, which include lawfulness, fairness, purpose limitation, data minimisation, accuracy, storage limitation, integrity and confidentiality3. Article 4 (1) (e) of the LED states that personal data shall be processed lawfully, where processing is necessary for the performance of a task carried out by a competent authority for the purposes of the LED, and where processing is based on Union or Member State law which shall meet an objective of general interest, respect the essence of the right to the protection of personal data and be proportionate to the legitimate aim pursued3. Therefore, a government can carry out covert investigations involving personal data, as long as it is set forth by law and constitutes a measure that is both necessary and proportionate to the objective of general interest, such as the prevention or prosecution of criminal offences. References: 1: CIPP/E study guide, page 1; Data protection in law enforcement2: CIPP/E study guide, page 2; Art. 2 LED3: CIPP/E study guide, page 3; Art. 4 LED.