CIPP-US Exam Questions & Answers

SCENARIO

Please use the following to answer the next question:

Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company

for ten years and has always been concerned about protecting customers' privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.

Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.

After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a

customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the

customer. The wording of these rules worries Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide

crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.

Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity.

However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any

employee can access if needed.

Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a

period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.

What is the main problem with Cheryl's suggested method of communicating the new privacy policy?

A. The policy would not be considered valid if not communicated in full.

B. The policy might not be implemented consistency across departments.

C. Employees would not be comfortable with a policy that is put into action over time.

D. Employees might not understand how the documents relate to the policy as a whole.

In which situation would a policy of "no consumer choice" or "no option" be expected?

A. When a job applicant's credit report is provided to an employer

B. When a customer's financial information is requested by the government

C. When a patient's health record is made available to a pharmaceutical company

D. When a customer's street address is shared with a shipping company

If an organization certified under Privacy Shield wants to transfer personal data to a third party acting as an agent, the organization must ensure the third party does all of the following EXCEPT?

A. Uses the transferred data for limited purposes

B. Provides the same level of privacy protection as the organization

C. Notifies the organization if it can no longer meet its requirements for proper data handling

D. Enters a contract with the organization that states the third party will process data according to the consent agreement