IAPP CIPP/US Exam Questions

The FTC is the primary federal agency responsible for enforcing privacy and data security laws in the United States. The FTC has broad jurisdiction over most commercial entities that collect, use, or share personal information from consumers. The FTC Act prohibits unfair or deceptive acts or practices in or affecting commerce, which includes unfair or deceptive privacy practices. The FTC can bring enforcement actions against companies that violate their own privacy policies, fail to provide adequate notice or choice to consumers, engage in unfair or harmful data practices, or breach consumers' reasonable expectations of privacy. The FTC can also issue rules, guidelines, and reports on privacy and data security issues, as well as conduct investigations, workshops, and educational campaigns.Reference:

IAPP CIPP/US Body of Knowledge, Section I.A.1.a

IAPP CIPP/US Textbook, Chapter 1, pp. 9-12

FTC Privacy and Security Enforcement

The USA FREEDOM Act is a law that was enacted in 2015 to reform the surveillance practices of the U.S. government. The law was a response to the revelations by Edward Snowden about the mass collection of phone records and internet data by the National Security Agency (NSA) under the authority of Section 215 of the USA PATRIOT Act. The USA FREEDOM Act ended the bulk collection of telephone data and internet metadata by the NSA, and instead required the government to obtain a specific order from the Foreign Intelligence Surveillance Court (FISC) to access such data from the telecommunication providers. The law also authorized the following practices:

Emergency exceptions that allow the government to target roamers: The law allows the government to temporarily target a non-U.S. person who is using a phone number or identifier of a U.S. person, without a court order, if there is an emergency situation that involves a threat of death or serious bodily harm. The government must obtain a court order within seven days to continue the surveillance.

An increase in the maximum penalty for material support to terrorism: The law increases the maximum prison term for providing material support or resources to a foreign terrorist organization from 15 years to 20 years.

An extension of the expiration for roving wiretaps: The law extends the sunset date for the roving wiretap provision of the USA PATRIOT Act, which allows the government to obtain a single order from the FISC to conduct surveillance on a target who switches devices or locations, without specifying the device or location. The law extends the expiration date from June 1, 2015 to December 15, 2019.Reference:

USA FREEDOM Act

USA FREEDOM Act Summary

USA FREEDOM Act FAQs

Under the Gramm-Leach-Bliley Act (GLBA), financial institutions are required to provide their customers with an annual privacy notice that explains how they collect, share, and protect customers' personal information. However, the GLBA Privacy Rule (16 CFR Part 313) was amended by the Fixing America's Surface Transportation Act (FAST Act) in 2015, which introduced an exception to this requirement.

According to the FAST Act, financial institutions are not required to provide annual privacy notices if they meet two conditions:

No changes have been made to their privacy policy or practices since the last notice was sent to customers.

The financial institution does not share customers' nonpublic personal information with nonaffiliated third parties in a way that triggers an opt-out requirement under GLBA.

Explanation of Options:

A . An insurance company that has no privacy department: This is irrelevant. The requirement to provide privacy notices depends on whether the organization falls under GLBA's definition of a 'financial institution' and their compliance with privacy practices, not on the presence of a privacy department.

B . An auction house that also acts as a financial institution: If the auction house qualifies as a financial institution under GLBA (e.g., if it arranges financing), it would still need to comply with GLBA privacy requirements, including issuing annual privacy notices unless it qualifies for the exception.

C . A credit union that has made changes to its privacy notice from last year: If any changes are made to the privacy policy, the credit union must issue an updated privacy notice to its customers.

D . A credit union that has not made changes to its privacy notice from last year: This is the correct answer. If the credit union has not made any changes to its privacy notice and meets the FAST Act exception criteria (outlined above), it is not required to issue an annual privacy notice.

Reference from CIPP/US Materials:

GLBA Privacy Rule (16 CFR Part 313): This rule outlines the requirements for financial institutions to provide privacy notices.

FAST Act (2015) Amendment to GLBA Privacy Rule: This amendment introduced exceptions to the annual notice requirement for institutions that meet specific criteria.

IAPP CIPP/US Certification Textbook: Details the conditions under which GLBA exceptions apply and describes how the FAST Act impacted annual privacy notice requirements.

When storing biometric data, such as fingerprints, organizations in the U.S. must comply with state-specific biometric privacy laws if they operate in states that regulate biometric information. The most prominent of these laws is the Illinois Biometric Information Privacy Act (BIPA), but similar laws also exist or are developing in other states, such as Texas and Washington.

Key Considerations for Storing Biometric Data:

Illinois Biometric Information Privacy Act (BIPA): BIPA (740 ILCS 14) is a leading and highly influential state law regulating the collection, storage, and use of biometric information. It requires organizations to:

Obtain informed, written consent before collecting biometric data.

Establish a publicly available policy governing the retention and destruction of biometric data.

Use a reasonable standard of care to protect biometric data from unauthorized access or use.

Prohibit the sale or transfer of biometric data without consent.

California and Biometric Data: While California's California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) provide general protections for personal information, including biometric data, they do not have the specific consent and handling requirements that BIPA does. Nevertheless, California residents have rights related to access, deletion, and the sale of biometric information.

Explanation of Options:

A. The Privacy Rule of the HITECH Act: The HITECH Act applies to the protection of protected health information (PHI) under HIPAA. While the Privacy Rule regulates healthcare-related information, it does not apply to Jane's biometric data used for remote authentication unless it is tied to PHI. This scenario is unrelated to healthcare, so this answer is incorrect.

B. The California IoT Security Law (SB 327): California's IoT Security Law primarily focuses on ensuring security requirements for connected devices. It does not regulate the collection or storage of biometric information. This is not relevant to the question.

C. The applicable state law such as Illinois BIPA: This is correct. State biometric privacy laws, such as Illinois BIPA, explicitly govern the collection, storage, and use of biometric data like fingerprints. Organizations like Jones Labs must ensure compliance with such laws, including obtaining consent and properly securing and destroying biometric information.

D. The federal Genetic Information Nondiscrimination Act (GINA): GINA prohibits discrimination based on genetic information in employment and health insurance. However, it does not regulate the storage of biometric data like fingerprints. This is not applicable to this scenario.

Best Practices for Compliance:

Jones Labs should:

Understand the applicable state biometric laws: If Jane resides in Illinois or other states with biometric laws, Jones Labs must comply with those specific legal requirements.

Obtain informed consent: Ensure that employees like Jane sign a written consent form before storing their fingerprints for authentication.

Secure biometric data: Use strong encryption and other security measures to protect the biometric information.

Define retention and destruction policies: Clearly establish how long biometric data will be stored and how it will be destroyed after its purpose is fulfilled.

Reference from CIPP/US Materials:

Illinois Biometric Information Privacy Act (BIPA): Sets the standard for biometric privacy regulations in the U.S.

California Consumer Privacy Act (CCPA): Protects personal information but does not specifically regulate biometric data like fingerprints with the same rigor as BIPA.

IAPP CIPP/US Certification Textbook: Discusses the emergence of state-specific biometric privacy laws and their applicability in different scenarios.

The Foreign Intelligence Surveillance Act (FISA) was enacted in 1978 in response to revelations of widespread privacy violations by the federal government under President Nixon.It established procedures for requesting judicial authorization for electronic surveillance and physical search of persons engaged in espionage or international terrorism against the United States on behalf of a foreign power1The original purpose of FISA was to further define a framework for authorizing wiretaps by the executive branch for national security purposes under Article II of the Constitution, which grants the president the power to conduct foreign affairs and defend the nation23FISA was intended to balance the need for collecting foreign intelligence information with the protection of privacy and civil liberties of U.S.persons4Reference: https://www.intelligence.gov/foreign-intelligence-surveillance-act

https://www.intelligence.gov/foreign-intelligence-surveillance-act/1234-categories-of-fisa