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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q189-Q194):

NEW QUESTION # 189
The "Consumer Privacy Bill of Rights" presented in a 2012 Obama administration report is generally based on?

A. European Union Directive
B. Traditional fair information practices
C. Common law principles
D. The 1974 Privacy Act

Answer: A

NEW QUESTION # 190
The Cable Communications Policy Act of 1984 requires which activity?

A. Destruction of personal information a maximum of six months after it is no longer needed
B. Notice to subscribers of any investigation involving unauthorized reception of cable services
C. Obtaining subscriber consent for disseminating any personal information necessary to render cable services
D. Delivery of an annual notice detailing how subscriber information is to be used

Answer: D

Explanation:
The Cable Communications Policy Act of 1984 (CCPA) is a federal law that regulates the cable television industry and protects the privacy of cable subscribers. One of the provisions of the CCPA is that cable operators must providetheir subscribers with an annual notice that clearly and conspicuously informs them of the following information12:
* The nature of personally identifiable information collected or to be collected with respect to the subscriber and the nature of the use of such information
* The nature, frequency, and purpose of any disclosure of such information, including an identification of the types of persons to whom the disclosure may be made
* The period during which such information will be maintained by the cable operator
* The times and place at which the subscriber may have access to such information
* The limitations provided by the CCPA with respect to the collection and disclosure of information by a cable operator and the right of the subscriber under the CCPA to enforce such limitations The annual notice must also state that the subscriber has the right to prevent disclosure of personally identifiable information to third parties, except as required by law or court order, and that the subscriber may sue for damages, attorney's fees, and other relief for violations of the CCPA12.
References: 1: Cable Communications Policy Act of 1984, Section 631 2: [IAPP CIPP/US Study Guide], Chapter 8, Section 8.3.2

NEW QUESTION # 191
SCENARIO
Please use the following to answer the next QUESTION :
Declan has just started a job as a nursing assistant in a radiology department at Woodland Hospital. He has also started a program to become a registered nurse.
Before taking this career path, Declan was vaguely familiar with the Health Insurance Portability and Accountability Act (HIPAA). He now knows that he must help ensure the security of his patients' Protected Health Information (PHI). Therefore, he is thinking carefully about privacy issues.
On the morning of his first day, Declan noticed that the newly hired receptionist handed each patient a HIPAA privacy notice. He wondered if it was necessary to give these privacy notices to returning patients, and if the radiology department could reduce paper waste through a system of one-time distribution.
He was also curious about the hospital's use of a billing company. He Questioned whether the hospital was doing all it could to protect the privacy of its patients if the billing company had details about patients' care.
On his first day Declan became familiar with all areas of the hospital's large radiology department. As he was organizing equipment left in the halfway, he overheard a conversation between two hospital administrators. He was surprised to hear that a portable hard drive containing non-encrypted patient information was missing. The administrators expressed relief that the hospital would be able to avoid liability. Declan was surprised, and wondered whether the hospital had plans to properly report what had happened.
Despite Declan's concern about this issue, he was amazed by the hospital's effort to integrate Electronic Health Records (EHRs) into the everyday care of patients. He thought about the potential for streamlining care even more if they were accessible to all medical facilities nationwide.
Declan had many positive interactions with patients. At the end of his first day, he spoke to one patient, John, whose father had just been diagnosed with a degenerative muscular disease. John was about to get blood work done, and he feared that the blood work could reveal a genetic predisposition to the disease that could affect his ability to obtain insurance coverage. Declan told John that he did not think that was possible, but the patient was wheeled away before he could explain why. John plans to ask a colleague about this.
In one month, Declan has a paper due for one his classes on a health topic of his choice. By then, he will have had many interactions with patients he can use as examples. He will be pleased to give credit to John by name for inspiring him to think more carefully about genetic testing.
Although Declan's day ended with many QUESTIONS, he was pleased about his new position.
How can the radiology department address Declan's concern about paper waste and still comply with the Health Insurance Portability and Accountability Act (HIPAA)?

A. Post the privacy notice in a prominent location instead
B. Direct patients to the correct area of the hospital website
C. Confirm that patients are given the privacy notice on their first visit
D. State the privacy policy to the patient verbally

Answer: B

Explanation:
It is important for test takers to not add additional information to the prompt by assuming information. By choosing D, you are assuming that Declan will stay long enough in the position that he will personally see to it that every first time patient receives a privacy notice. By choosing C, you are answering the exact question by addressing the paper waste concern and complying with HIPAA which allows covered entities to post privacy notices on websites. Model Notices of Privacy Practices on the HHS website outlines two requirements: A covered entity must make its notice available to any person who asks for it (satisfies pointing the person in the direction of the covered entity website); A covered entity must prominently post and make available its notice on any web site it maintains that provides information about its customer services or benefits (satisfies pointing the person to the covered entity website to view privacy notice).

NEW QUESTION # 192
When may a financial institution share consumer information with non-affiliated third parties for marketing purposes?

A. After disclosing marketing practices to customers and after giving them an opportunity to opt out.
B. After disclosing information-sharing practices to customers and after giving them an opportunity to opt in.
C. After disclosing information-sharing practices to customers and after giving them an opportunity to opt out.
D. After disclosing marketing practices to customers and after giving them an opportunity to opt in.

Answer: C

Explanation:
According to the Gramm-Leach-Bliley Act (GLBA) and its implementing Regulation P, a financial institution may share consumer information with non-affiliated third parties for marketing purposes only after disclosing its information-sharing practices to customers and after giving them an opportunity to opt out of such sharing. The GLBA defines a customer as a consumer who has a continuing relationship with a financial institution that provides one or more financial products or services to be used primarily for personal, family, or household purposes. A consumer is an individual who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that individual's legal representative. A non-affiliated third party is any person except a financial institution's affiliate or a person employed jointly by a financial institution and a company that is not the financial institution's affiliate. An affiliate is any company that controls, is controlled by, or is under common control with another company.
The GLBA requires that a financial institution provide a privacy notice to customers: (i) at the time of establishing the customer relationship; (ii) annually during the continuation of the customer relationship; and (iii) before disclosing any nonpublic personal information (NPI) about the customer to any non-affiliated third party, unless an exception applies. The privacy notice must describe the categories of NPI that the financial institution collects and discloses; the categories of affiliates and non-affiliated third parties to whom the financial institution discloses NPI; the categories of NPI disclosed to service providers and joint marketers; the policies and practices with respect to protecting the confidentiality and security of NPI; and the disclosures of NPI to which the customer has a right to opt out. The financial institution must also provide a reasonable means for the customer to opt out of the disclosure of NPI to non-affiliated third parties, such as a check-off box, a reply form, or a toll-free telephone number. The opt-out notice must be clear and conspicuous, and must state that the customer can opt out at any time. The opt-out notice must also explain how the customer can opt out, and the effect of opting out. The financial institution must honor the customer's opt-out direction as soon as reasonably practicable after receiving it, and must not disclose any NPI to which the opt-out applies, unless an exception applies.
The GLBA provides several exceptions to the opt-out requirement, such as when the disclosure of NPI is necessary to effect, administer, or enforce a transaction requested or authorized by the customer; when the disclosure of NPI is required or permitted by law; when the disclosure of NPI is to a consumer reporting agency in accordance with the Fair Credit Reporting Act; or when the disclosure of NPI is to a person that performs marketing services on behalf of the financial institution or on behalf of the financial institution and another financial institution under a joint marketing agreement. A joint marketing agreement is a formal written contract between a financial institution and any other person under which the parties agree to offer, endorse, or sponsor a financial product or service. The joint marketing agreement must prohibit the other person from using or disclosing the NPI for any purpose other than offering, endorsing, or sponsoring the financial product or service covered by the agreement.
The GLBA also requires that a financial institution provide a privacy notice to consumers who are not customers before disclosing any NPI about the consumer to any non-affiliated third party, unless an exception applies. The financial institution does not need to provide an opt-out notice to consumers who are not customers, unless it has a customer relationship with them. However, if the financial institution establishes a customer relationship with a consumer who was previously not a customer, it must provide a privacy notice and an opt-out notice to the customer as described above.
References:
* Guide to the Gramm-Leach-Bliley Act
* GLBA or FCRA? Data Sharing Between Affiliates and Non-Affiliates
* Existing Privacy Laws Already Regulate Information Sharing
* Why Do Banks Share Your Financial Information and Are They Allowed To?
* [IAPP CIPP/US Certified Information Privacy Professional Study Guide], Chapter 5, pages 161-165.

NEW QUESTION # 193
SCENARIO
Please use the following to answer the next QUESTION:
A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer's data handling practices.
The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal dat a. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: "Please act immediately by identifying all personal data received from our company." This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup's rapid market penetration.
As the Company's data privacy leader, you are sensitive to the criticality of the relationship with the retailer.
At this stage of the investigation, what should the data privacy leader review first?

A. Available data flow diagrams
B. The text of the original complaint
C. The company's data privacy policies
D. Prevailing regulation on this subject

Answer: D

NEW QUESTION # 194
......

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