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NEW QUESTION 41
Which of the following is NOT one of three broad categories of products offered by data brokers, as identified by the U.S. Federal Trade Commission (FTC)?
- A. Risk mitigation (such as information that may reduce the risk of fraud).
- B. Research (such as information for understanding consumer trends).
- C. Marketing (such as appending data to customer information that a marketing company already has).
- D. Location of individuals (such as identifying an individual from partial information).
Answer: D
NEW QUESTION 42
SCENARIO
Please use the following to answer the next question:
Joe is the new privacy manager for Who-R-U, a Canadian business that provides DNA analysis. The company is headquartered in Montreal, and all of its employees are located there. The company offers its services to Canadians only: Its website is in English and French, it accepts only Canadian currency, and it blocks internet traffic from outside of Canada (although this solution doesn't prevent all non-Canadian traffic). It also declines to process orders that request the DNA report to be sent outside of Canada, and returns orders that show a non-Canadian return address.
Bob, the President of Who-R-U, thinks there is a lot of interest for the product in the EU, and the company is exploring a number of plans to expand its customer base.
The first plan, collegially called We-Track-U, will use an app to collect information about its current Canadian customer base. The expansion will allow its Canadian customers to use the app while traveling abroad. He suggests that the company use this app to gather location information. If the plan shows promise, Bob proposes to use push notifications and text messages to encourage existing customers to pre-register for an EU version of the service. Bob calls this work plan, We-Text-U. Once the company has gathered enough pre- registrations, it will develop EU-specific content and services.
Another plan is called Customer for Life. The idea is to offer additional services through the company's app, like storage and sharing of DNA information with other applications and medical providers. The company's contract says that it can keep customer DNA indefinitely, and use it to offer new services and market them to customers. It also says that customers agree not to withdraw direct marketing consent. Paul, the marketing director, suggests that the company should fully exploit these provisions, and that it can work around customers' attempts to withdraw consent because the contract invalidates them.
The final plan is to develop a brand presence in the EU. The company has already begun this process. It is in the process of purchasing the naming rights for a building in Germany, which would come with a few offices that Who-R-U executives can use while traveling internationally. The office doesn't include any technology or infrastructure; rather, it's simply a room with a desk and some chairs.
On a recent trip concerning the naming-rights deal, Bob's laptop is stolen. The laptop held unencrypted DNA reports on 5,000 Who-R-U customers, all of whom are residents of Canada. The reports include customer name, birthdate, ethnicity, racial background, names of relatives, gender, and occasionally health information.
The Customer for Life plan may conflict with which GDPR provision?
- A. Article 16, which provides data subjects with a rights to rectification.
- B. Article 6, which requires processing to be lawful.
- C. Article 20, which gives data subjects a right to data portability.
- D. Article 7, which requires consent to be as easy to withdraw as it is to give.
Answer: D
NEW QUESTION 43
What is the main challenge financial institutions face when managing user preferences?
- A. Determining the legal requirements for sharing preferences with their affiliates
- B. Ensuring they are in compliance with numerous complex state and federal privacy laws
- C. Ensuring that preferences are applied consistently across channels and platforms
- D. Developing a mechanism for opting out that is easy for their consumers to navigate
Answer: C
NEW QUESTION 44
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