IAPP CIPP-US Exam Questions

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

Federal preemption is a doctrine in law that allows a federal law to take precedence over or to displace a state law in certain matters of national importance (such as interstate commerce). The doctrine is based on the Supremacy Clause of the Constitution, which declares that federal law is the ''supreme law of the land'' and that state judges are bound by it. There are two types of federal preemption: express and implied. Express preemption occurs when Congress expressly states that a federal law is intended to preempt certain types of state legislation. Implied preemption occurs when a state law conflicts with federal law because it is impossible to comply with both at the same time, or because it interferes with the objectives of the federal law, or because the federal government has fully occupied the field of regulation.

The U.S. Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act is an example of express preemption. The Act regulates commercial email messages and establishes requirements for senders and penalties for violations. The Act also explicitly preempts any state law that ''expressly regulates the use of electronic mail to send commercial messages'', except for state laws that prohibit falsity or deception. This means that states cannot pass laws that impose greater obligations on senders of email marketing than the federal law, such as requiring opt-in consent or providing additional opt-out mechanisms. Therefore, the CAN-SPAM Act is the correct answer to the question.

The other options are not examples of federal preemption. The Payment Card Industry's (PCI) ability to self-regulate and enforce data security standards for payment card data is not a federal law, but a private sector initiative. The U.S. Federal Trade Commission's (FTC) ability to enforce against unfair and deceptive trade practices across sectors and industries is not a preemption of state law, but a concurrent power that can coexist with state consumer protection laws. The California Consumer Privacy Act (CCPA) regulating businesses that have no physical brick-and-mortal presence in California, but which do business there, is not preempted by any federal law, but is a state law that applies to entities that meet certain criteria of collecting or selling personal information of California residents.Reference:Federal preemption,What is Federal Preemption?,Federal preemption Definition & Meaning,preemption,Preemption legal definition of Preemption, CAN-SPAM Act, IAPP CIPP/US Study Guide, Chapter 2.

The CCPA applies to any business that collects personal information of California residents, regardless of where the business is located1.The CCPA defines personal information broadly as 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 household2.This could include business contact information, such as name, email address, phone number, or job title, if it is linked to a specific individual3.Therefore, Otto should tell the Board that business contact information could be considered personal information governed by CCPA, and that the company may need to comply with the CCPA requirements, such as providing notice, honoring consumer rights requests, and implementing reasonable security measures4.Reference:

CIPP/US Practice Questions (Sample Questions), Question 124, Answer C, Explanation C.

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 6, Section 6.2, p. 181-182.

California Consumer Privacy Act (CCPA), Section 1798.140, Subsection (o).

CCPA Compliance Checklist for Businesses, Section 2, Subsection (a).

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.