Free IAPP CIPP-US Practice Exam with Questions & Answers | Set: 5

Title VII of the Civil Rights Act of 1964 is a federal law that prohibits employment discrimination based on race, color, religion, sex, and national origin1 It also prohibits retaliation against individuals who assert their rights under the law or participate in an EEOC investigation1 Title VII applies to employers with 15 or more employees, as well as to employment agencies, labor organizations, and joint labor-management committees1

Title VII prohibits employers from making pre-employment inquiries that express a preference, limitation, or specification based on any of the protected characteristics, unless they are bona fide occupational qualifications (BFOQs)2 BFOQs are rare and narrowly construed exceptions that allow employers to consider a protected characteristic when it is reasonably necessary to the normal operation of the business2 For example, a religious organization may require its employees to share its faith, or a women’s shelter may hire only female counselors2

Option A is incorrect because questions about age are not prohibited by Title VII, but by the Age Discrimination in Employment Act of 1967 (ADEA), which protects individuals who are 40 years of age or older from employment discrimination based on age3 The ADEA generally prohibits employers from asking applicants about their age or date of birth, unless age is a BFOQ or the inquiry is part of a lawful affirmative action plan3

Option B is incorrect because questions about a disability are not prohibited by Title VII, but by the Americans with Disabilities Act of 1990 (ADA), which protects qualified individuals with disabilities from employment discrimination based on disability4 The ADA generally prohibits employers from asking applicants about whether they have a disability or the nature or severity of a disability, unless the inquiry is related to the ability to perform the essential functions of the job with or without reasonable accommodation4

Option C is incorrect because questions about a national origin are prohibited by Title VII, but not in all circumstances. Title VII prohibits employers from asking applicants about their national origin, ancestry, birthplace, native language, or accent, unless they are BFOQs or the inquiry is related to a legitimate business purpose, such as verifying eligibility to work in the United States or assessing language proficiency for a job that requires communication skills25

Option D is correct because questions about intended pregnancy are prohibited by Title VII, as amended by the Pregnancy Discrimination Act of 1978 (PDA), which protects women from employment discrimination based on pregnancy, childbirth, or related medical conditions. The PDA prohibits employers from asking applicants about whether they are pregnant or intend to become pregnant, unless they are related to the ability to perform the job. Such questions may indicate an intent to discriminate based on sex or pregnancy, or may deter women from applying for certain jobs.

References: 1: Title VII of the Civil Rights Act of 1964 | U.S. Equal Employment Opportunity Commission 2: Questions and Answers about Race and Color Discrimination in Employment | U.S. Equal Employment Opportunity Commission 3: Age Discrimination | U.S. Equal Employment Opportunity Commission 4: Disability Discrimination | U.S. Equal Employment Opportunity Commission 5: National Origin Discrimination | U.S. Equal Employment Opportunity Commission : Pregnancy Discrimination | U.S. Equal Employment Opportunity Commission

According to Section 5 of the FTC Act, self-regulation primarily involves a company’s right to adhere to its industry’s code of conduct. Self-regulation is a process by which an industry or a group of companies voluntarily adopts and enforces standards or guidelines to protect consumers and promote fair competition. The FTC encourages self-regulation as a way to complement its enforcement efforts and address emerging issues in the marketplace. The FTC also monitors self-regulatory programs and may take action against companies that fail to comply with their own codes of conduct or misrepresent their participation in such programs. References:

Federal Trade Commission Act, Section 5 of

Self-Regulation | Federal Trade Commission

[IAPP CIPP/US Certified Information Privacy Professional Study Guide], Chapter 3, page 79

Unlike many other countries, the United States does not have a comprehensive federal law that regulates the privacy of private-sector employees. Instead, the privacy protection of employees depends largely on state law, contract law, and tort law. State law may provide specific rights and remedies for employees regarding issues such as drug testing, background checks, electronic monitoring, social media access, and genetic information. Contract law may create obligations and expectations for employers and employees based on written or implied agreements, such as employment contracts, employee handbooks, or collective bargaining agreements. Tort law may allow employees to sue their employers for invasion of privacy, such as intrusion upon seclusion, public disclosure of private facts, false light, or appropriation of name or likeness. The other options are less likely to provide privacy protection to private-sector employees in the United States. The FTC Act primarily regulates the privacy practices of businesses that collect and use consumer data, not employee data. The U.S. Constitution only protects individuals from unreasonable searches and seizures by the government, not by private employers. The HHS only enforces the HIPAA Privacy Rule, which applies to covered entities and business associates that handle protected health information, not to all private-sector employers. References:

IAPP CIPP/US Study Guide, Chapter 6: Workplace Privacy

Privacy Rights of Employees Using Workplace Computers in the United States

Employee Privacy Laws

The Fair Credit Reporting Act (FCRA) is considered part of U.S. federal privacy law because it regulates the collection, use, and disclosure of personal information by consumer reporting agencies, such as credit bureaus, background check companies, and tenant screening services. The FCRA aims to protect the privacy, accuracy, and fairness of consumer credit information, and to ensure that consumers have access to and control over their own credit reports. The FCRA also imposes obligations on users and furnishers of consumer reports, such as creditors, employers, insurers, and landlords, to obtain consent, provide notice, and correct errors when using consumer reports for various purposes. The FCRA is enforced by the Federal Trade Commission (FTC) and other federal agencies, as well as by private lawsuits and state attorneys general. The FCRA was enacted in 1970 and has been amended several times, most notably by the Fair and Accurate Credit Transactions Act of 2003 (FACTA), which added provisions on identity theft prevention, fraud alerts, free credit reports, and disposal of consumer information. References:

Fair Credit Reporting Act - Wikipedia

Fair Credit Reporting Act | Federal Trade Commission

Fair Credit Reporting Act (FCRA) - Consumer Information

Fair Credit Reporting Act (FCRA) | Privacy Rights Clearinghouse

The biggest potential privacy concern related to Chanel’s use of this new software is scanning a client’s social media accounts to use in a client profile without notice to the client. This could violate the client’s reasonable expectation of privacy and consent, as well as the privacy policies of the social media platforms. The client may not be aware that their social media posts are being used for this purpose, and may not have given their permission or opt-in consent for such data collection and processing. This could also expose the client to potential discrimination or harm based on their social media activity, such as losing their appointment or being charged a cancellation fee. Furthermore, this practice could conflict with the Fair Information Practice Principles (FIPPs), such as transparency, purpose specification, and data minimization12. References:

CIPP/US Practice Questions (Sample Questions), Question 149, Answer A, Explanation A.

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1, Section 1.1, p. 9-10.

The Children’s Online Privacy Protection Act (COPPA) is a federal law that protects the privacy of children under 13 who use online sites and services. COPPA requires operators of such sites and services to obtain verifiable parental consent before collecting, using, or disclosing personal information from children, and to provide notice of their information practices to parents and the public. COPPA also gives parents the right to access, review, and delete their children’s personal information, and to limit further collection or use of such information.1

One way for operators to comply with COPPA is to participate in an approved self-regulatory program, also known as a “safe harbor” program. These are programs that are run by industry groups or other organizations that set and enforce standards for privacy protection that meet or exceed the requirements of COPPA. Operators that join a safe harbor program and follow its guidelines are deemed to be in compliance with COPPA and are subject to the review and disciplinary procedures of the program instead of FTC enforcement actions. The FTC has approved several safe harbor programs, such as CARU, ESRB, iKeepSafe, kidSAFE, PRIVO, and TRUSTe.2

By participating in an approved self-regulatory program, the marketer in the scenario could have best changed its privacy management program to meet COPPA “Safe Harbor” requirements. This would mean that the marketer would have to adhere to the guidelines of the program, which would likely include obtaining verifiable parental consent before collecting personal information from children, providing clear and prominent privacy notices on its website and emails, honoring parents’ choices and requests regarding their children’s data, and ensuring the security and confidentiality of the data collected. The marketer would also benefit from the oversight and assistance of the program in ensuring compliance and resolving any complaints or disputes.3 References: 1: Complying with COPPA: Frequently Asked Questions4, Section A2: COPPA Safe Harbor Program3: IAPP CIPP/US Certified Information Privacy Professional Study Guide, page 143.

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 Federal Trade Commission (FTC) is the primary federal agency that regulates advertising and marketing practices in the United States, including those targeting children via the Internet. The FTC enforces the Children’s Online Privacy Protection Act (COPPA), which requires operators of websites and online services directed to children under 13 to obtain verifiable parental consent before collecting, using, or disclosing personal information from children. The FTC also enforces the FTC Act, which prohibits unfair or deceptive acts or practices in commerce, such as making false or misleading claims in advertising. The FTC has issued guidelines and reports on various aspects of digital advertising to children, such as sponsored content, influencers, data collection, persuasive design, and behavioral marketing. The FTC also hosts workshops and events to examine the impact of digital advertising on children and their ability to distinguish ads from entertainment. References:

FTC website

Digital Advertising to Children

IAPP CIPP/US Study Guide, Chapter 5: Marketing and Privacy, pp. 169-170

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

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/