IAPP CIPP-US Dumps - Certified Information Privacy Professional/United States (CIPP/US) PDF Sample Questions

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Certified Information Privacy Professional/United States (CIPP/US)
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Last Update Date : 24 February, 2024
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Sample Questions

Realexamdumps Providing most updated Certified Information Privacy Professional Question Answers. Here are a few sample questions:

IAPP CIPP-US Sample Question 1

Which of the following became the first state to pass a law specifically regulating the collection of biometric data?


A. California.
B. Texas.
C. Illinois.
D. Washington.

Answer: C Explanation: Reference: [Reference: https://www.jdsupra.com/legalnews/state-biometric-laws-are-trending-and-2640319/, ]

IAPP CIPP-US Sample Question 2

Even when dealing with an organization subject to the CCPA, California residents are NOT legally entitled to request that the organization do what?


A. Delete their personal information.
B. Correct their personal information.
C. Disclose their personal information to them.
D. Refrain from selling their personal information to third parties.

Answer: B Explanation: Reference: [Reference: https://www.thsh.com/publications/what-businesses-outside-california-should-know-about-the- california-consumer-privacy-act, ]

IAPP CIPP-US Sample Question 3


Please use the following to answer the next QUESTION:

You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo’s business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth’s security measures.

A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals – ones that exposed the PHI of public figures including celebrities and politicians.

During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.

A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual’s ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient’s attorney has submitted a discovery request for the ePHI exposed in the breach.

Which of the following would be HealthCo’s best response to the attorney’s discovery request?


A. Reject the request because the HIPAA privacy rule only permits disclosure for payment, treatment or healthcare operations
B. Respond with a request for satisfactory assurances such as a qualified protective order
C. Turn over all of the compromised patient records to the plaintiff’s attorney
D. Respond with a redacted document only relative to the plaintiff

Answer: D

IAPP CIPP-US Sample Question 4

What consumer protection did the Fair and Accurate Credit Transactions Act (FACTA) require?


A. The ability for the consumer to correct inaccurate credit report information
B. The truncation of account numbers on credit card receipts
C. The right to request removal from e-mail lists
D. Consumer notice when third-party data is used to make an adverse decision

Answer: A Explanation: Reference: [Reference: https://www.investopedia.com/terms/f/facta.asp, ]

IAPP CIPP-US Sample Question 5


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 customer’s 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 worry 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 most likely risk of Fitness Coach, Inc. adopting Janice’s first draft of the privacy policy?


A. Leaving the company susceptible to violations by setting unrealistic goals
B. Failing to meet the needs of customers who are concerned about privacy
C. Showing a lack of trust in the organization’s privacy practices
D. Not being in standard compliance with applicable laws

Answer: B

IAPP CIPP-US Sample Question 6

How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?


A. It expanded the definition of “consumer reports” to include communications relating to employee investigations
B. It increased the obligation of organizations to dispose of consumer data in ways that prevent unauthorized access
C. It stipulated the purpose of obtaining a consumer report can only be for a review of the employee’s credit worthiness
D. It required employers to get an employee’s consent in advance of requesting a consumer report for internal investigation purposes

Answer: B Explanation: Explanation: Section: (none)Explanatioo

IAPP CIPP-US Sample Question 7

The Family Educational Rights and Privacy Act (FERPA) requires schools to do all of the following EXCEPT?


A. Verify the identity of students who make requests for access to their records.
B. Provide students with access to their records within a specified amount of time.
C. Respond to all reasonable student requests regarding explanation of their records.
D. Obtain student authorization before releasing directory information in their records.

Answer: B Explanation: Reference: [Reference: https://www2.ed.gov/policy/gen/guid/fpco/pdf/ferpa-disaster-guidance.pdf, ]

IAPP CIPP-US Sample Question 8


Please use the following to answer the next QUESTION

When there was a data breach involving customer personal and financial information at a large retail store, the company’s directors were shocked. However, Roberta, a privacy analyst at the company and a victim of identity theft herself, was not. Prior to the breach, she had been working on a privacy program report for the executives. How the company shared and handled data across its organization was a major concern. There were neither adequate rules about access to customer information nor

procedures for purging and destroying outdated data. In her research, Roberta had discovered that even low- level employees had access to all of the company’s customer data, including financial records, and that the company still had in its possession obsolete customer data going back to the 1980s.

Her report recommended three main reforms. First, permit access on an as-needs-to-know basis. This would mean restricting employees’ access to customer information to data that was relevant to the work performed. Second, create a highly secure database for storing customers’ financial information (e.g., credit card and bank account numbers) separate from less sensitive information. Third, identify outdated customer information and then develop a process for securely disposing of it.

When the breach occurred, the company’s executives called Roberta to a meeting where she presented the recommendations in her report. She explained that the company having a national customer base meant it would have to ensure that it complied with all relevant state breach notification laws. Thanks to Roberta’s guidance, the company was able to notify customers quickly and within the specific timeframes set by state breach notification laws.

Soon after, the executives approved the changes to the privacy program that Roberta recommended in her report. The privacy program is far more effective now because of these changes and, also, because privacy and security are now considered the responsibility of every employee.

What could the company have done differently prior to the breach to reduce their risk?


A. Implemented a comprehensive policy for accessing customer information.
B. Honored the promise of its privacy policy to acquire information by using an opt-in method.
C. Looked for any persistent threats to security that could compromise the company’s network.
D. Communicated requests for changes to users’ preferences across the organization and with third parties.

Answer: D

IAPP CIPP-US Sample Question 9

If an organization maintains data classified as high sensitivity in the same system as data classified as low sensitivity, which of the following is the most likely outcome?


A. The organization will still be in compliance with most sector-specific privacy and security laws.
B. The impact of an organizational data breach will be more severe than if the data had been segregated.
C. Temporary employees will be able to find the data necessary to fulfill their responsibilities.
D. The organization will be able to address legal discovery requests efficiently without producing more information than necessary.

Answer: E

IAPP CIPP-US Sample Question 10

What are banks required to do under the Gramm-Leach-Bliley Act (GLBA)?


A. Conduct annual consumer surveys regarding satisfaction with user preferences
B. Process requests for changes to user preferences within a designated time frame
C. Provide consumers with the opportunity to opt out of receiving telemarketing phone calls
D. Offer an Opt-Out before transferring PI to an unaffiliated third party for the latter’s own use

Answer: D Explanation: Reference: [Reference: https://www.investopedia.com/terms/g/glba.asp, ]

IAPP CIPP-US Sample Question 11

The U.S. Supreme Court has recognized an individual’s right to privacy over personal issues, such as contraception, by acknowledging which of the following?


A. Federal preemption of state constitutions that expressly recognize an individual right to privacy.
B. A “penumbra” of unenumerated constitutional rights as well as more general protections of due process of law.
C. An interpretation of the U.S. Constitution’s explicit definition of privacy that extends to personal issues.
D. The doctrine of stare decisis, which allows the U.S. Supreme Court to follow the precedent of previously decided case law.

Answer: B Explanation: Reference: [Reference: https://academic.oup.com/idpl/article/2/4/255/676934, ]

IAPP CIPP-US Sample Question 12

What is the main purpose of the Global Privacy Enforcement Network?


A. To promote universal cooperation among privacy authorities
B. To investigate allegations of privacy violations internationally
C. To protect the interests of privacy consumer groups worldwide
D. To arbitrate disputes between countries over jurisdiction for privacy laws

Answer: A Explanation: Reference: [Reference: https://en.wikipedia.org/wiki/Global_Privacy_Enforcement_Network, ]

IAPP CIPP-US Sample Question 13

Which of the following is commonly required for an entity to be subject to breach notification requirements under most state laws?


A. The entity must conduct business in the state
B. The entity must have employees in the state
C. The entity must be registered in the state
D. The entity must be an information broker

Answer: B

IAPP CIPP-US Sample Question 14

Chanel Hair Studio is a busy high-end hair salon. In an effort to maximize efficiency of its operations and reduce wait times for appointments, Chanel decides to implement artificial intelligence software that will use client profiles and history to predict which clients will likely be late for their appointments. Information used to create the client profile included appointment history, distance from the salon, and any references to being tardy pulled from the client’s social media accounts. If a client is predicted to be late, their appointment will be cancelled within 5 minutes.

Based on the details, what is the biggest potential privacy concern related to Chanel’s use of this new software?


A. Scanning a client’s social media accounts to use in a client profile without notice to the client.
B. Calculating client profile address distance from the salon to determine location from salon to help predict if the client will be late.
C. Using client profile information for any purpose other than setting up an appointment.
D. Assessing client tardiness history with the salon for predictive purposes.

Answer: C

IAPP CIPP-US Sample Question 15


Please use the following to answer the next QUESTION

Noah is trying to get a new job involving the management of money. He has a poor personal credit rating, but he has made better financial decisions in the past two years.

One potential employer, Arnie’s Emporium, recently called to tell Noah he did not get a position. As part of the application process, Noah signed a consent form allowing the employer to request his credit report from a consumer reporting agency (CRA). Noah thinks that the report hurt his chances, but believes that he may not ever know whether it was his credit that cost him the job. However, Noah is somewhat relieved that he was not offered this particular position. He noticed that the store where he interviewed was extremely disorganized. He imagines that his credit report could still

be sitting in the office, unsecured.

Two days ago, Noah got another interview for a position at Sam’s Market. The interviewer told Noah that his credit report would be a factor in the hiring decision. Noah was surprised because he had not seen anything on paper about this when he applied.

Regardless, the effect of Noah’s credit on his employability troubles him, especially since he has tried so hard to improve it. Noah made his worst financial decisions fifteen years ago, and they led to bankruptcy. These were decisions he made as a young man, and most of his debt at the time consisted of student loans, credit card debt, and a few unpaid bills – all of which Noah is still working to pay off. He often laments that decisions he made fifteen years ago are still affecting him today.

In addition, Noah feels that an experience investing with a large bank may have contributed to his financial troubles. In 2007, in an effort to earn money to help pay off his debt, Noah talked to a customer service representative at a large investment company who urged him to purchase stocks. Without understanding the risks, Noah agreed. Unfortunately, Noah lost a great deal of money.

After losing the money, Noah was a customer of another financial institution that suffered a large security breach. Noah was one of millions of customers whose personal information was compromised. He wonders if he may have been a victim of identity theft and whether this may have negatively affected his credit.

Noah hopes that he will soon be able to put these challenges behind him, build excellent credit, and find the perfect job.

Based on the scenario, which legislation should ease Noah’s worry about his credit report as a result of applying at Arnie’s Emporium?


A. The Privacy Rule under the Gramm-Leach-Bliley Act (GLBA).
B. The Safeguards Rule under the Gramm-Leach-Bliley Act (GLBA).
C. The Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA).
D. The Red Flags Rule under the Fair and Accurate Credit Transactions Act (FACTA).

Answer: C

IAPP CIPP-US Sample Question 16

Under the Telemarketing Sales Rule, what characteristics of consent must be in place for an organization to acquire an exception to the Do-Not-Call rules for a particular consumer?


A. The consent must be in writing, must state the times when calls can be made to the consumer and must be signed
B. The consent must be in writing, must contain the number to which calls can be made and must have an end date
C. The consent must be in writing, must contain the number to which calls can be made and must be signed
D. The consent must be in writing, must have an end data and must state the times when calls can be made

Answer: C

IAPP CIPP-US Sample Question 17

What privacy concept grants a consumer the right to view and correct errors on his or her credit report?


A. Access.
B. Notice.
C. Action.
D. Choice.

Answer: C

IAPP CIPP-US Sample Question 18


Please use the following to answer the next QUESTION:

Declan has just started a job as a nursing assistant in a radiology department at Woodland Hospital. He has also started a program to become a registered nurse.

Before taking this career path, Declan was vaguely familiar with the Health Insurance Portability and Accountability Act (HIPAA). He now knows that he must help ensure the security of his patients’ Protected Health Information (PHI). Therefore, he is thinking carefully about privacy issues.

On the morning of his first day, Declan noticed that the newly hired receptionist handed each patient a HIPAA privacy notice. He wondered if it was necessary to give these privacy notices to returning patients, and if the radiology department could reduce paper waste through a system of one-time distribution.

He was also curious about the hospital’s use of a billing company. He Questioned whether the hospital was doing all it could to protect the privacy of its patients if the billing company had details about patients’ care.

On his first day Declan became familiar with all areas of the hospital’s large radiology department. As he was organizing equipment left in the halfway, he overheard a conversation between two hospital administrators. He was surprised to hear that a portable hard drive containing non-encrypted patient information was missing. The administrators expressed relief that the hospital would be able to avoid liability. Declan was surprised, and wondered whether the hospital had plans to properly report what had happened.

Despite Declan’s concern about this issue, he was amazed by the hospital’s effort to integrate Electronic Health Records (EHRs) into the everyday care of patients. He thought about the potential for streamlining care even more if they were accessible to all medical facilities nationwide.

Declan had many positive interactions with patients. At the end of his first day, he spoke to one patient, John, whose father had just been diagnosed with a degenerative muscular disease. John was about to get blood work done, and he feared that the blood work could reveal a genetic predisposition to the disease that could affect his ability to obtain insurance coverage. Declan told John that he did not think that was possible, but the patient was wheeled away before he could explain why. John plans to ask a colleague about this.

In one month, Declan has a paper due for one his classes on a health topic of his choice. By then, he will have had many interactions with patients he can use as examples. He will be pleased to give credit to John by name for inspiring him to think more carefully about genetic testing.

Although Declan’s day ended with many Questions, he was pleased about his new position.

How can the radiology department address Declan’s concern about paper waste and still comply with the Health Insurance Portability and Accountability Act (HIPAA)?


A. State the privacy policy to the patient verbally
B. Post the privacy notice in a prominent location instead
C. Direct patients to the correct area of the hospital website
D. Confirm that patients are given the privacy notice on their first visit

Answer: C Explanation: Explanation: Section: (none)Explanatioo

IAPP CIPP-US Sample Question 19

When may a financial institution share consumer information with non-affiliated third parties for marketing purposes?


A. After disclosing information-sharing practices to customers and after giving them an opportunity to opt in.
B. After disclosing marketing practices to customers and after giving them an opportunity to opt in.
C. After disclosing information-sharing practices to customers and after giving them an opportunity to opt out.
D. After disclosing marketing practices to customers and after giving them an opportunity to opt out.

Answer: C Explanation: Reference: [Reference: https://www.ftc.gov/tips-advice/business-center/guidance/how-comply-privacy-consumer-financial- information-rule-gramm, ]

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