IAPP CIPP/US Exam Questions

The Clarifying Lawful Overseas Use of Data (CLOUD) Act, enacted in 2018, updates the legal framework for federal law enforcement to access electronic data held by U.S. service providers, even when the data is stored outside the United States. The act resolves jurisdictional issues that arise in cross-border data requests and facilitates international cooperation for law enforcement purposes.

Key Provisions of the CLOUD Act:

Data Access for Law Enforcement:

The CLOUD Act allows U.S. federal law enforcement to compel U.S.-based service providers (e.g., Microsoft, Google) to provide access to data stored abroad using a valid warrant or subpoena, provided the request complies with applicable laws.

International Data Sharing Agreements:

The CLOUD Act enables the U.S. to establish bilateral agreements with other countries to streamline access to data for law enforcement purposes. These agreements ensure that U.S. and foreign law enforcement can access data without violating each other's sovereignty or privacy laws.

Conflict with Foreign Laws:

The act includes mechanisms for providers to challenge data requests that conflict with the laws of the country where the data is stored, providing safeguards for compliance with foreign privacy laws like the General Data Protection Regulation (GDPR).

Explanation of Options:

A. Codify a treaty with the EU that permits the cross-border transfer of personal information from the EU to the United States in compliance with the GDPR: This is incorrect. The CLOUD Act is not specific to the EU or GDPR compliance. Instead, it focuses on law enforcement access to data stored abroad.

B. Update the legal mechanisms through which federal law enforcement may obtain data that service providers maintain in a foreign country: This is correct. The CLOUD Act directly addresses law enforcement's ability to compel data access from U.S. providers, regardless of the data's physical location.

C. Establish baseline privacy obligations that U.S. companies must comply with for personal information, even if stored in a foreign country: This is incorrect. The CLOUD Act is focused on law enforcement access to data, not privacy obligations for companies.

D. Prohibit foreign companies from using the personal information of U.S. citizens without their consent: This is incorrect. The CLOUD Act does not regulate foreign companies or impose consent requirements for using personal information.

Reference from CIPP/US Materials:

CLOUD Act (18 U.S.C. 2713): Establishes legal mechanisms for cross-border data access and international agreements.

IAPP CIPP/US Certification Textbook: Discusses the CLOUD Act's impact on cross-border data requests and its interaction with global privacy laws.

The Family Educational Rights and Privacy Act of 1974 (FERPA) is a federal law that protects the privacy of student education records. FERPA grants parents or eligible students the right to access, amend, and control the disclosure of their education records, with some exceptions.Schools must obtain written consent from the parent or eligible student before disclosing any personally identifiable information from the education records, unless an exception applies123

Option A violates FERPA because it involves the disclosure of a student's personally identifiable information (PII) from the education records without consent.A student's signed essay about her hometown is considered an education record under FERPA, as it is directly related to the student and maintained by the school12A K-12 assessment vendor is not a school official with a legitimate educational interest, nor does it fall under any of the exceptions that allow disclosure without consent12Therefore, the school must obtain the student's (or the parent's, if the student is a minor) written consent before providing the essay to the vendor for public release.

Option B does not violate FERPA because it involves the disclosure of directory information, which is not considered PII under FERPA.Directory information is information that would not generally be considered harmful or an invasion of privacy if disclosed, such as name, address, phone number, e-mail address, major, etc12Schools may disclose directory information without consent, unless the parent or eligible student has opted out of such disclosure12However, schools must notify parents and eligible students of the types of directory information they designate and their right to opt out annually12

Option C does not violate FERPA because it involves the disclosure of information that is not part of the education records.FERPA only applies to education records that are directly related to a student and maintained by the school or a party acting for the school12A newspaper's publication of the names, grade levels, and hometowns of students who made the quarterly honor roll is not based on the education records, but on the newspaper's own sources and reporting. Therefore, FERPA does not prohibit such disclosure.

Option D does not violate FERPA because it involves the disclosure of information under an exception that allows disclosure without consent.FERPA permits schools to disclose education records, or PII from education records, without consent to comply with a judicial order or lawfully issued subpoena, or to appropriate officials in connection with a health or safety emergency123If the university police provide an arrest report to the student's hometown police in response to a subpoena or to prevent a serious threat to the student or others, they are not violating FERPA.

The Consumer Privacy Bill of Rights is a set of principles proposed by the Obama administration in 2012 to protect the privacy of consumers online and offline. The principles are based on the Fair Information Practice Principles, which are widely accepted as the foundation of privacy protection. One of the principles is the right to reasonable limits on the personal data that a company retains, which means that companies should collect and keep only the personal data they need for legitimate purposes, and dispose of it securely when it is no longer needed. This principle would best reform the company's privacy program in the scenario, as it would address the major concerns that Roberta identified in her report, such as the lack of rules and procedures for purging and destroying outdated data, and the excessive access to customer information by low-level employees. By implementing reasonable limits on the personal data that the company retains, the company would reduce the risk of data breaches, enhance customer trust, and comply with state breach notification laws.Reference:

Fact Sheet: Plan to Protect Privacy in the Internet Age by Adopting a Consumer Privacy Bill of Rights

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1: Introduction to U.S. Privacy Law, Section 1.2: The Consumer Privacy Bill of Rights

HIPAA requires covered entities to provide a notice of privacy practices (NPP) to individuals who receive health care services from the covered entity. The NPP must describe how the covered entity may use and disclose protected health information (PHI), the individual's rights with respect to their PHI, and the covered entity's obligations to protect the privacy of PHI. The NPP must be provided to the individual no later than the date of the first service delivery, either in person or electronically. The covered entity must also make the NPP available on request and post it on its website if it has one. The covered entity must also make a good faith effort to obtain a written acknowledgment from the individual that they received the NPP. If the individual refuses to sign the acknowledgment, the covered entity must document the attempt and the reason for the refusal.

The other options are not sufficient to comply with HIPAA. Stating the privacy policy verbally (option A) does not provide the individual with a written or electronic copy of the NPP that they can keep for future reference. Posting the privacy notice in a prominent location (option B) does not ensure that the individual receives the NPP or has an opportunity to review it before receiving services. Directing patients to the correct area of the hospital website (option C) does not provide the individual with the NPP at the time of service delivery, unless the individual agrees to receive the NPP electronically and has access to the website at that time.Reference:

Notice of Privacy Practices for Protected Health Information

Model Notices of Privacy Practices

Sample Notice: Availability of Notice of Privacy Practices

Notice of Privacy Practices

Notice of Privacy Practices (NPP) Distribution and Acknowledgement

The ''Discover'' phase of building an information management program is the first step in the process of creating a privacy framework. It involves identifying the types, sources, and flows of personal information within an organization, as well as the legal, regulatory, and contractual obligations that apply to it. The tasks in this phase include:

Conducting a data inventory and mapping exercise to document what personal information is collected, used, shared, and stored by the organization, and how it is protected.

Assessing the current state of privacy compliance and risk by reviewing existing policies, procedures, and practices, and identifying any gaps or weaknesses.

Understanding the laws that regulate a company's collection of information, such as the Fair Credit Reporting Act (FCRA), the Gramm-Leach-Bliley Act (GLBA), the Health Insurance Portability and Accountability Act (HIPAA), and the California Consumer Privacy Act (CCPA).

Facilitating participation across departments and levels to ensure that all stakeholders are involved and informed of the privacy goals and objectives, and to foster a culture of privacy awareness and accountability.

Developing a process for review and update of privacy policies is not a task in the ''Discover'' phase, but rather in the ''Implement'' phase, which is the third step in the process of creating a privacy framework. It involves putting the privacy policies and procedures into action, and ensuring that they are effective and compliant. The tasks in this phase include:

Developing a process for review and update of privacy policies to reflect changes in the business environment, legal requirements, and best practices, and to incorporate feedback from internal and external audits and assessments.

Implementing privacy training and awareness programs to educate employees and other relevant parties on their roles and responsibilities regarding privacy, and to promote a privacy-by-design approach.

Establishing privacy governance and oversight mechanisms to monitor and measure the performance and outcomes of the privacy program, and to ensure accountability and transparency.

Developing a process for responding to privacy incidents and requests from data subjects, regulators, and other parties, and to mitigate and remediate any privacy risks or harms.

IAPP CIPP/US Body of Knowledge, Domain I: Information Management from a U.S. Perspective, Section A: Building a Privacy Program

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 1: Information Management from a U.S. Perspective, Section 1.1: Building a Privacy Program

Practice Exam - International Association of Privacy Professionals