CIPP-US Test Question | Valid CIPP-US Test Syllabus

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IAPP CIPP-US: Certified Information Privacy Professional/United States (CIPP/US) exam cost is $550 USD and retake fees is $375 USD, for more information please visit the official website.

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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q20-Q25):

NEW QUESTION # 20
Which venture would be subject to the requirements of Section 5 of the Federal Trade Commission Act?

A. A local nonprofit charity's fundraiser
B. A national bank's no-fee checking promotion
C. An online merchant's free shipping offer
D. A city bus system's frequent rider program

Answer: C

Explanation:
Section 5 of the Federal Trade Commission Act (FTC Act) prohibits "unfair or deceptive acts or practices in or affecting commerce."1 This prohibition applies to all persons engaged in commerce, including banks, but also exempts some entities, such as nonprofit organizations and common carriers, from FTC jurisdiction.2 Therefore, among the four options, only an online merchant's free shipping offer would be subject to the requirements of Section 5, as it involves a commercial activity thatcould potentially mislead or harm consumers. For example, if the online merchant fails to disclose the terms and conditions of the offer, or charges hidden fees, or delivers the products late or damaged, it could violate Section 5 by engaging in a deceptive practice.3 References: 1: Section 5 | Federal Trade Commission 2: Federal Trade Commission Act Section 5: Unfair or Deceptive Acts or Practices, page 13: IAPP CIPP/US Certified Information Privacy Professional Study Guide, page 23.

NEW QUESTION # 21
What was unique about the action that the Federal Trade Commission took against B.J.'s Wholesale Club in 2005?

A. It was the first substantial U.S.-EU Safe Harbor enforcement.
B. It made user consent mandatory after any revisions of policy.
C. It was based on matters of fairness rather than deception.
D. It made third-party audits a penalty for policy violations.

Answer: C

Explanation:
Per the FTC Press Release in 2005, "BJ's Wholesale Club, Inc. has agreed to settle Federal Trade Commission charges that its failure to take appropriate security measures to protect the sensitive information of thousands of its customers was an unfair practice that violated federal law."

NEW QUESTION # 22
Which of the following would NOT constitute an exception to the authorization requirement under the HIPAA Privacy Rule?

A. Disclosing health information needed to treat a medical emergency.
B. Disclosing health information to file a child abuse report.
C. Disclosing health information for public health activities.
D. Disclosing health information needed to pay a third party billing administrator.

Answer: D

Explanation:
Among the options provided, disclosing health information needed to pay a third party billing administrator would NOT constitute an exception to the authorization requirement under the HIPAA Privacy Rule. Generally, when disclosing health information for payment and healthcare operations purposes, specific patient authorization is not required. However, this exception applies primarily to disclosures made to healthcare providers, health plans, and other entities directly involved in the payment or healthcare operations process.

NEW QUESTION # 23
What does the Massachusetts Personal Information Security Regulation require as it relates to encryption of personal information?

A. The encryption of all personal information stored in Massachusetts-based companies when all equipment is located in Massachusetts.
B. The encryption of all personal information of Massachusetts residents when all equipment is located in Massachusetts.
C. The encryption of all personal information of Massachusetts residents when stored on portable devices.
D. The encryption of personal information stored in Massachusetts-based companies when stored on portable devices.

Answer: C

Explanation:
The Massachusetts Personal Information Security Regulation (201 CMR 17.00) requires that any person or entity that owns or licenses personal information of Massachusetts residents must implement and maintain a comprehensive written information security program that includes administrative, technical, and physical safeguards to protect such information. One of the technical requirements of the regulation is to encrypt all personal information of Massachusetts residents that is stored on laptops or other portable devices, regardless of where the equipment is located12. The regulation defines personal information as a person's first name and last name or first initial and last name in combination with any one or more of the following data elements that relate to such person: (a) Social Security number; (b) driver's license number or state-issued identification card number; or financial account number, or credit or debit card number, with or without any required security code, access code, personal identification number or password, that would permit access to a resident's financial account1. The regulation also requires encryption of all transmitted records and files containing personal information that will travel across public networks, and encryption of all data containing personal information to be transmitted wirelessly1. References:
* Regulation 201 CMR 17.00: Standards for the Protection of Personal Information of MA Residents
* Massachusetts Law Raises the Bar for Data Security

NEW QUESTION # 24
Privacy Is Hiring Inc., a CA-based company, is an online specialty recruiting firm focusing on placing privacy professionals in roles at major companies. Job candidates create online profiles outlining their experience and credentials, and can pay $19.99/month via credit card to have their profiles promoted to potential employers. Privacy Is Hiring Inc. keeps all customer data at rest encrypted on its servers.
Under what circumstances would Privacy Is Hiring Inc., need to notify affected individuals in the event of a data breach?

A. If the personal information stolen included the individuals' names and credit card pin numbers.
B. If Privacy Is Hiring Inc., reasonably believes that job candidates will be harmed by the data breach.
C. If law enforcement has completed its investigation and has authorized Privacy Is Hiring Inc. to provide the notification to clients and applicable regulators.
D. If the job candidates' credit card information and the encryption keys were among the information taken.

Answer: A

NEW QUESTION # 25
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