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NEW QUESTION 44
What would be an example of an organization transferring the risks associated with a data breach?

• A. Encrypting sensitive personal data during collection and storage
• B. Purchasing insurance to cover the organization in case of a breach.
• C. Applying industry standard data handling practices to the organization' practices.
• D. Using a third-party service to process credit card transactions.

Answer: B

NEW QUESTION 45
What was the first privacy framework to be developed?

• A. OECD Privacy Principles.
• B. Generally Accepted Privacy Principles.
• C. Code of Fair Information Practice Principles (FIPPs).
• D. The Asia-Pacific Economic Cooperation (APEC) Privacy Framework.

Answer: A

NEW QUESTION 46
SCENARIO
Please use the following to answer the next question:
Jordan just joined a fitness-tracker start-up based in California, USA, as its first Information Privacy and Security Officer. The company is quickly growing its business but does not sell any of the fitness trackers itself. Instead, it relies on a distribution network of third-party retailers in all major countries. Despite not having any stores, the company has a 78% market share in the EU. It has a website presenting the company and products, and a member section where customers can access their information. Only the email address and physical address need to be provided as part of the registration process in order to customize the site to the user's region and country. There is also a newsletter sent every month to all members featuring fitness tips, nutrition advice, product spotlights from partner companies based on user behavior and preferences.
Jordan says the General Data Protection Regulation (GDPR) does not apply to the company. He says the company is not established in the EU, nor does it have a processor in the region. Furthermore, it does not do any "offering goods or services" in the EU since it does not do any marketing there, nor sell to consumers directly. Jordan argues that it is the customers who chose to buy the products on their own initiative and there is no "offering" from the company.
The fitness trackers incorporate advanced features such as sleep tracking, GPS tracking, heart rate monitoring. wireless syncing, calorie-counting and step-tracking. The watch must be paired with either a smartphone or a computer in order to collect data on sleep levels, heart rates, etc. All information from the device must be sent to the company's servers in order to be processed, and then the results are sent to the smartphone or computer. Jordan argues that there is no personal information involved since the company does not collect banking or social security information.
Why is Jordan's claim that the company does not collect personal information as identified by the GDPR inaccurate?

• A. The potential customers must browse for products online.
• B. The website collects the customers' and users' region and country information.
• C. The customers must pair their fitness trackers to either smartphones or computers.
• D. The fitness trackers capture sleep and heart rate data to monitor an individual's behavior.

Answer: A

NEW QUESTION 47
Which of the following statements describes an acceptable disclosure practice?

• A. When an organization discloses data to a vendor, the terms of the vendor s privacy notice prevail over the organization s privacy notice.
• B. Intermediaries processing sensitive data on behalf of an organization require more strict disclosure oversight than vendors.
• C. An organization s privacy policy discloses how data will be used among groups within the organization itself.
• D. With regard to limitation of use, internal disclosure policies override contractual agreements with third parties.

Answer: A

NEW QUESTION 48
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