IAPP CIPP-E Exam Questions

The GDPR defines processors as entities that process personal data on behalf of controllers, typically under a contract or other legal act that sets out the subject matter, duration, nature, purpose, type and categories of personal data, and the obligations and rights of the controller. Processors must act only on the documented instructions of the controller, unless required by law to act otherwise. Processors must also comply with the GDPR's requirements regarding the security, confidentiality, transfer, sub-processing, notification, assistance, cooperation, and documentation of the personal data processing.

However, the GDPR does not prescribe the exact technical and organisational measures that processors must implement to ensure the security of the personal data processing. Instead, the GDPR requires that processors take into account the state of the art, the costs of implementation, the nature, scope, context and purposes of the processing, and the risks for the rights and freedoms of data subjects. Therefore, processors have some discretion to determine their own type of hardware or software and the specific security measures for the processing, as long as they provide a level of security appropriate to the risk and comply with the controller's instructions. Processors may also adhere to approved codes of conduct or certification mechanisms to demonstrate their compliance with the GDPR's security requirements.

The other options listed in the question are not aspects of processing that the GDPR allows processors to determine for themselves. According to the GDPR:

Processors must inform the controller of any intended changes concerning the addition or replacement of other processors, and give the controller the opportunity to object to such changes. Processors must also impose the same data protection obligations on any sub-processors as those agreed with the controller.

Processors must not process the personal data for their own purposes, unless they have a legal basis to do so and inform the data subjects accordingly. Processors must only process the personal data for the purposes determined by the controller, and in accordance with the controller's instructions.

Processors must not use the personal data relating to the controller's customers for their own marketing campaigns, unless they have obtained the consent of the data subjects or have another legitimate interest to do so. Processors must respect the data subjects' rights to object to direct marketing and to withdraw their consent at any time.

GDPR, Articles 4, 28, 29, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42 and 43.

EDPB Guidelines 07/2020 on the concepts of controller and processor in the GDPR, pages 19, 20, 21, 22, 23, 24, 25, 26, 27 and 28.

A DPIA is not a one-time activity. While it's crucial to conduct a DPIA before implementing a new system that processes personal data (like the fingerprint system), the GDPR requires organizations to review and update their DPIAs periodically, especially when there are changes that might affect the risk to data subjects.

Here's why the other options are incorrect:

A . After the complaint of the supporter: While a complaint might trigger a review of the processing, the DPIA should have been done proactively before any issues arose.

C . At the end of every match of the season: This frequency is excessive and doesn't align with the idea of assessing risks when changes occur.

D . After the AEPD notification of the investigation: Similar to option A, this is reactive rather than proactive.

GDPR Article 35 - Data protection impact assessment

IAPP CIPP/E textbook, Chapter 4: Accountability and Data Governance (specifically, sections on DPIAs and ongoing review)

WP29 Guidelines on Data Protection Impact Assessment (DPIA)

Article 9 of the GDPR outlines strict conditions for processing special categories of personal data, which includes data revealing racial or ethnic origin. While options B, C, and D might seem relevant, they don't fully align with the core purpose of MagicAI's data collection.

Here's why option A is the most appropriate:

Scientific Research: MagicAI aims to improve the accuracy and fairness of its AI system by understanding how it performs across different ethnicities, nationalities, and genders. This directly ties into scientific research aimed at improving healthcare and reducing bias in medical technology.

It's important to note that even with 'scientific research' as the legal basis, MagicAI must still adhere to strict safeguards, such as:

Data Minimization: Collecting only the data absolutely necessary for the research.

Purpose Limitation: Using the data solely for the defined scientific purpose.

Appropriate Security Measures: Protecting the data against unauthorized access or disclosure.

Ethical Review: Ideally, obtaining ethical approval for the research project.

GDPR Article 9 - Processing of special categories of personal data

GDPR Recital 159 - Conditions for processing special categories of data for scientific research purposes

IAPP CIPP/E textbook, Chapter 2: Key Data Protection Principles (specifically, sections on special categories of data)

According to the GDPR, the material scope of the regulation covers the processing of personal data wholly or partly by automated means, or by non-automated means if the data forms part of a filing system or is intended to form part of a filing system (Article 2(1)). Personal data is defined as any information relating to an identified or identifiable natural person (data subject) (Article 4(1)). An identifiable natural person is one who can be identified, directly or indirectly, by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person (Article 4(1)). Therefore, pseudonymous data, such as blockchain transactions that use public keys or other identifiers, may still fall within the definition of personal data if the data subject can be identified or re-identified by using additional information or means (Recital 26).

The GDPR also applies to the processing of personal data in the context of the activities of an establishment of a controller or a processor in the European Union, regardless of whether the processing takes place in the European Union or not (Article 3(1)). The GDPR also applies to the processing of personal data of data subjects who are in the European Union by a controller or processor not established in the European Union, where the processing activities are related to the offering of goods or services to such data subjects in the European Union or the monitoring of their behaviour as far as their behaviour takes place within the European Union (Article 3(2)). Therefore, the territorial scope of the GDPR covers both controllers and processors established in the European Union, and controllers and processors not established in the European Union but targeting or monitoring data subjects in the European Union.

In this scenario, blockchain transactions are classified as pseudonymous data, which may still be considered as personal data under the GDPR if the data subjects can be identified or re-identified. Therefore, such transactions are within the material scope of the GDPR, as they involve the processing of personal data by automated means. However, the GDPR only applies to such transactions to the extent that they include data subjects in the European Union, either by having a controller or processor established in the European Union, or by offering goods or services to or monitoring the behaviour of such data subjects. Therefore, the answer is C.

An adequacy decision is a decision adopted by the European Commission, which determines that a third country, a territory or one or more specified sectors within a third country, or an international organisation ensures an adequate level of protection of personal data1.This means that the third country or organisation provides a level of protection that is essentially equivalent to that guaranteed within the European Union (EU), taking into account its domestic law and international commitments, as well as the respect for the rule of law, human rights and fundamental freedoms, relevant legislation, and the existence and effective functioning of independent supervisory authorities1.An adequacy decision is one of the transfer tools that can be used to transfer personal data to a third country or organisation without requiring any further authorisation1.However, an adequacy decision is not permanent and can be amended, suspended or repealed by the Commission at any time, if the conditions are no longer met1.Therefore, according to the recommendations of the European Data Protection Board (EDPB), the additional action that should be taken when a transfer to a third country is based upon an adequacy decision is to monitor changes in the law or practice of the third country that would lower the level of protection of personal data2.This means that the data exporter should stay informed of any developments in the third country or organisation that could affect the validity of the adequacy decision, and take appropriate measures if the level of protection is no longer adequate2.The data exporter should also cooperate with the competent supervisory authority and inform it of any issues that may affect the compliance with the adequacy decision2. Therefore, option D is the correct answer.Reference:Art. 45 GDPR -- Transfers on the basis of an adequacy decision,Recommendations 01/2020 on measures that supplement transfer tools to ensure compliance with the EU level of protection of personal data