Pass the IAPP Certified Information Privacy Professional CIPP-US Questions and answers with ExamsMirror

The CCPA provides consumers with a private right of action to pursue statutory damages following data security breaches that impact certain sensitive categories of personal information and are caused by a business’s failure to institute reasonable and appropriate security. The CCPA defines personal information for this purpose as an individual’s name in combination with any of the following: social security number, driver’s license number, account number, credit or debit card number, medical information, or health insurance information. The CCPA allows consumers to seek damages between $100 and $750 per consumer per incident, or actual damages, whichever is greater. The CCPA also requires consumers to provide the business with 30 days’ written notice and an opportunity to cure the violation before initiating an action. Additionally, the CCPA requires consumers to notify the Attorney General within 30 days of filing the action and obtain the Attorney General’s approval or nonobjection before proceeding with the action. Therefore, John can sue the corporation for the data breach to recover monetary damages suffered as a result of the data breach, and in some circumstances seek statutory damages irrespective of whether he suffered any financial harm, as long as he meets the requirements of the CCPA. References:

CCPA Provides Private Right of Action for Data Security Breaches

CCPA Private Right of Action – Data Breach Security Requirement

CCPA Fines & Penalties for Data Protection Violations | MatrixPoint

Implied consent is a form of consent that is inferred from the actions or inactions of the data subject, rather than explicitly expressed by the data subject1.

Implied consent is generally considered a valid basis for processing personal data under certain circumstances, such as when the processing is necessary for the performance of a contract, the legitimate interests of the data controller, or the reasonable expectations of the data subject2.

However, implied consent may not be sufficient for processing sensitive personal data, such as health, biometric, or genetic data, or for sending marketing communications, depending on the applicable laws and regulations2.

In the U.S., there is no comprehensive federal privacy law that regulates the use of implied consent for data processing, but there are sector-specific laws and state laws that may impose different requirements and limitations3.

Based on the scenarios given in the question, the situation that is most likely to involve a company operating under the assumption of implied consent is A. An employer contacts the professional references provided on an applicant’s resume.

This is because the employer may reasonably infer that the applicant has consented to the contact of the references by voluntarily providing their information on the resume, and that the contact is necessary for the legitimate interest of the employer to verify the applicant’s qualifications and suitability for the job4.

The other situations may not involve implied consent, but rather require explicit consent or provide opt-out options for the data subjects, depending on the type and purpose of the data processing and the relevant laws and regulations5 . For example:

B. An online retailer subscribes new customers to an e-mail list by default. This may violate the CAN-SPAM Act, which requires online marketers to obtain affirmative consent from the recipients before sending commercial e-mail messages, and to provide a clear and conspicuous opt-out mechanism in every message5.

C. A landlord uses the information on a completed rental application to run a credit report. This may violate the Fair Credit Reporting Act, which requires landlords to obtain written authorization from the applicants before obtaining their consumer reports, and to provide them with a copy of the report and a summary of their rights if they take any adverse action based on the report.

D. A retail clerk asks a customer to provide a zip code at the check-out counter. This may violate the California Song-Beverly Credit Card Act, which prohibits retailers from requesting and recording personal identification information from customers who pay with a credit card, unless the information is necessary for a special purpose, such as shipping or fraud prevention.

References: 1: Implied Consent 2: Consent 3: U.S. Private-Sector Privacy (CIPP/US) 4: [Reference Checks: Tips for Job Applicants and Employers] 5: [CAN-SPAM Act: A Compliance Guide for Business] : [Using Consumer Reports: What Landlords Need to Know] : [California Song-Beverly Credit Card Act] : [Reference Checks: Tips for Job Applicants and Employers] : [CAN-SPAM Act: A Compliance Guide for Business] : [Using Consumer Reports: What Landlords Need to Know] : [California Song-Beverly Credit Card Act]

The Children’s Online Privacy Protection Act (COPPA) is a federal law that regulates the online collection and use of personal information from children under 13 years of age. COPPA requires operators of websites or online services that are directed to children, or that knowingly collect personal information from children, to obtain verifiable parental consent before collecting, using, or disclosing such information. Verifiable parental consent means any reasonable effort (taking into consideration available technology) to ensure that before personal information is collected from a child, the child’s parent receives notice of the operator’s information practices and consents to those practices. COPPA also imposes other obligations on operators, such as providing parents with access to their children’s information, maintaining reasonable security measures, and limiting data retention. References: COPPA, IAPP CIPP/US Study Guide, Chapter 2, Section 2.3.1

Under the California Consumer Privacy Act (CCPA), businesses must verify the identity of individuals making data access requests to ensure the security of personal information. The most secure and straightforward way to verify a consumer’s identity is by requiring the individual to log in to their password-protected account, as this demonstrates that the requester is the account owner.

Why Password-Protected Accounts Are Best for Verification:

Account-Based Relationship:If the consumer has a password-protected account with the business, verification can typically be achieved by having the consumer log in to the account. This is considered a sufficient method of verifying identity under CCPA guidelines.

Minimizing Risk:Verifying identity through account login reduces the risk of fraudulent access to personal information, as only the account owner has access to the login credentials.

Explanation of Options:

A. Take a photo of herself with her driver license:While this might verify identity, it is more intrusive and poses unnecessary risks of identity theft. This is not a preferred or common method under the CCPA.

B. Provide a notarized affidavit signed by two witnesses:This is excessive and impractical for verifying identity in most cases, particularly for an online store.

C. Log in to her password-protected account with the company:This is correct. Logging into a password-protected account is a straightforward and secure way to verify the identity of a requester under the CCPA.

D. Phone the company and provide her contact details and credit card number:This method is insecure, as it could lead to identity theft or fraudulent access if someone else provides this information.

References from CIPP/US Materials:

CCPA Regulations (11 CCR § 999.323): Specifies identity verification requirements, including the use of password-protected accounts.

IAPP CIPP/US Certification Textbook: Covers secure methods for verifying consumer identity under the CCPA.

 The Red Flags Rule is a regulation that requires financial institutions and creditors to implement a written identity theft prevention program that is designed to detect, prevent, and mitigate identity theft in connection with the opening of a covered account or any existing covered account1. A creditor is any person who regularly extends, renews, or continues credit; any person who regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who participates in the decision to extend, renew, or continue credit2. A covered account is an account that a financial institution or creditor offers or maintains, primarily for personal, family, or household purposes, that involves or is designed to permit multiple payments or transactions, such as a credit card account, mortgage loan, automobile loan, margin account, cell phone account, utility account, checking account, or savings account2. A money wire service is a service that allows customers to send or receive money electronically3. The owner of a grocery store who uses a money wire service is not a creditor because he or she does not regularly extend, renew, or continue credit to customers. Therefore, the Red Flags Rule does not apply to the owner of a grocery store who uses a money wire service. References:

1: FTC, Red Flags Rule, https://www.ftc.gov/business-guidance/privacy-security/red-flags-rule

2: FTC, Fighting Identity Theft with the Red Flags Rule: A How-To Guide for Business, https://www.ftc.gov/tips-advice/business-center/guidance/fighting-identity-theft-red-flags-rule-how-guide-business

3: Alessa, Wire Transfer Red Flags: Understanding Money Laundering and Fraud Risks, https://alessa.com/webinars/wire-transfer-red-flags-and-fraud-risks/

The VPPA was enacted to prevent the wrongful disclosure of personally identifiable information (PII) concerning any consumer of a video tape service provider. PII includes information that identifies a person as having requested or obtained specific video materials or services from a video tape service provider. The VPPA prohibits such disclosure, except in certain limited circumstances, such as with the consumer’s informed, written consent, or pursuant to a law enforcement warrant, subpoena, or court order. The VPPA also allows the disclosure of the names and addresses of consumers, but not the title, description, or subject matter of any video tapes or other audio visual material, for the exclusive use of marketing goods and services directly to the consumer, unless the consumer has opted out of such disclosure. The other options (B, C, and D) are not restricted by the VPPA. References:

Video Privacy Protection Act - Wikipedia

18 U.S. Code § 2710 - Wrongful disclosure of video tape rental or sale records | U.S. Code | US Law | LII / Legal Information Institute

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 3: Federal Privacy Laws and Regulations, Section 3.5: Video Privacy Protection Act (VPPA)

California’s SB 1386, also known as the California Security Breach Information Act, was enacted in 2002 and became effective in 2003. It was the first law of its kind in the United States to require commercial entities that own or license personal information of California residents to notify them in the event of a security breach that compromises their unencrypted data. The law aims to protect the privacy and security of personal information and to enable individuals to take preventive measures against identity theft and fraud. The law applies to any business or person that conducts business in California and that owns or licenses computerized data that includes personal information, as defined by the law. Personal information includes an individual’s first name or first initial and last name in combination with any one or more of the following data elements: Social Security number, driver’s license number or California identification card number, account number, credit or debit card number, in combination with any required security code, access code, or password that would permit access to an individual’s financial account, or medical information or health insurance information. The law does not apply to encrypted information, publicly available information, or information that is lawfully obtained from federal, state, or local government records. The law requires the disclosure of a breach of the security of the system to any resident of California whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. The disclosure must be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement or any measures necessary to determine the scope of the breach and restore the reasonable integrity of the data system. The disclosure may be made by written notice, electronic notice, or substitute notice, as specified by the law. The law also requires any person or business that maintains computerized data that includes personal information that the person or business does not own to notify the owner or licensee of the information of any breach of the security of the data immediately following discovery, if the personal information was, or is reasonably believed to have been, acquired by an unauthorized person. The law also authorizes a civil action for damages by a customer injured by a violation of the law and provides that the rights and remedies available under the law are cumulative to each other and to any other rights and remedies available under law. References:

California Senate Bill 1386 (2002)

California SB 1386: For the Love of Privacy

What Is the California Security Breach Information Act?

California Raises the Bar on Data Security and Privacy

The California Consumer Privacy Act (CCPA) defines a ‘sale’ of personal information as any transfer or disclosure of personal information to another business or third party for monetary or other valuable consideration. However, the CCPA also provides some exceptions to this definition, such as:

If the consumer has directed the business to intentionally disclose the personal information or use the personal information to interact with a third party, provided the third party does not also sell the personal information.

If the business transfers the personal information to a service provider that is contractually prohibited from retaining, using, or disclosing the personal information for any purpose other than performing the services specified in the contract with the business.

If the business transfers the personal information to a third party as part of a merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the business, provided the information is used or shared consistently with the CCPA.

The use of cookies on a website by a service provider is generally not deemed a sale of personal information by the CCPA, as long as the information collected by the service provider is necessary to perform the services specified in the contract with the business, and the service provider does not further collect, sell, or use the personal information of the consumer except as necessary to perform the business purpose. One of the examples of a valid business purpose is to perform debugging to identify and repair errors that impair existing intended functionality.

Therefore, option D is the correct answer, as it describes a scenario where the use of cookies by a service provider is not a sale of personal information under the CCPA, assuming the service provider complies with the contractual obligations and does not further use or disclose the information.

Option A is incorrect, as it does not describe a valid exception to the definition of a sale. The third party that stores personal information to trigger a response to a consumer’s request to opt in is not acting as a service provider, but as a separate entity that may have its own interest in the personal information. The consumer’s request to opt in does not necessarily imply that the consumer has directed the business to disclose the personal information to the third party.

Option B is incorrect, as it does not describe a valid exception to the definition of a sale. The analytics cookies placed by the service provider may still constitute a sale of personal information, even if they cannot be linked to a particular consumer of that business. The CCPA defines personal information broadly to include any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. Therefore, the analytics cookies may still fall within the scope of personal information, and their use by the service provider may still be a sale, unless one of the exceptions applies.

Option C is incorrect, as it does not describe a valid exception to the definition of a sale. The service provider that retains personal information obtained in the course of providing the services specified in the agreement with the subcontractors is not acting as a service provider to the business, but as a separate entity that may have its own interest in the personal information. The agreement with the subcontractors does not necessarily imply that the business has authorized the service provider to retain, use, or disclose the personal information for any purpose other than performing the services specified in the contract with the business.

References:

[IAPP CIPP/US Study Guide], Chapter 10: California Consumer Privacy Act, pp. 223-226.

CIPP/US Practice Questions (Sample Questions), Question 30.

A consent decree is a legal document that resolves a dispute between a governmental agency and an adverse party without admission of guilt or liability by either side. It is approved by a judge and has the force of a court order. A consent decree may include terms such as compliance, monitoring, reporting, or remediation. A consent decree is often used to settle civil enforcement actions brought by federal agencies such as the Federal Trade Commission (FTC), the Environmental Protection Agency (EPA), or the Department of Justice (DOJ). References:

IAPP Glossary, entry for “consent decree”

[IAPP CIPP/US Study Guide], p. 39, section 2.1.3

[IAPP CIPP/US Body of Knowledge], p. 9, section B.1.a

According to HIPAA, a business associate is a person or entity that performs certain functions or activities that involve the use or disclosure of protected health information (PHI) on behalf of, or provides services to, a covered entity. A business associate agreement (BAA) is a written contract between a covered entity and a business associate that establishes the permitted and required uses and disclosures of PHI by the business associate, as well as the safeguards that the business associate must implement to protect the PHI. In this scenario, MedApps is a business associate of Miraculous, since it provides a telehealth app that involves the use or disclosure of PHI on behalf of Miraculous. Therefore, HIPAA would require Miraculous and MedApps to enter into a BAA before using the telehealth app. The other options are incorrect because HIPAA does not prohibit the use of cloud hosting services or the hosting of in-person appointment data in the cloud, as long as the appropriate safeguards and agreements are in place. HIPAA also does not require patient consent for the sharing of PHI with third parties for treatment, payment, or health care operations purposes, which would include the use of the telehealth app. References:

HIPAA and Telehealth - Office for Civil Rights

HIPAA Rules for telehealth technology - Telehealth.HHS.gov

Notification of Enforcement Discretion for Telehealth - Office for Civil Rights

Guidance: How the HIPAA Rules Permit Covered Health Care Providers and Health Plans to Provide Audio-Only Telehealth - Office for Civil Rights

HIPAA Compliant App - Telehealth.org

IAPP CIPP/US Certified Information Privacy Professional Study Guide - Chapter 3: HIPAA and HITECH, pages 75-76, 81-82, 86-87.