IAPP CIPP-US Exam Questions

Nevada's privacy law, Senate Bill 260 (SB 260), is an amendment to the existing Nevada Revised Statutes (NRS) Chapter 603A that was enacted in June 2021 and will take effect on October 1, 2021. SB 260 expands the scope and definition of ''covered information'' under NRS 603A to include any information that identifies, relates to, describes, or is capable of being associated with a consumer, such as name, address, email, phone number, social security number, biometric data, geolocation data, and online identifiers. SB 260 also grants Nevada consumers the right to opt out of the sale of their covered information by an operator of a website or online service that collects and maintains such information.

Under SB 260, an operator is defined as a person who owns or operates a website or online service for commercial purposes, collects and maintains covered information from consumers who reside in Nevada and use or visit the website or online service, and purposefully directs its activities toward Nevada. A sale is defined as the exchange of covered information for monetary consideration by the operator to a person for the person to license or sell the covered information to additional persons. However, there are some exceptions to the definition of a sale, such as:

If the consumer has consented to the sale after being provided with clear and conspicuous notice of the sale and the opportunity to opt out.

If the sale is to a person who processes the covered information on behalf of the operator.

If the sale is to a person with whom the consumer has a direct relationship for the purposes of providing a product or service requested by the consumer.

If the sale is to a person for purposes that are consistent with the reasonable expectations of the consumer considering the context in which the consumer provided the covered information to the operator.

If the sale is to a person who is an affiliate of the operator.

If the sale is to a person as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the person assumes control of all or part of the operator's assets.

To comply with SB 260, an operator that sells covered information must provide a designated request address through which a consumer may submit a verified request to opt out of the sale. The designated request address may be an email address, a toll-free telephone number, or an Internet website. The operator must respond to the verified request within 60 days, and may extend the response period for an additional 30 days if reasonably necessary. The operator must also provide a notice to the consumer that identifies the categories of covered information that the operator collects and the categories of third parties to whom the operator may disclose the covered information.

Therefore, the best privacy compliance step for SuperMart to comply with SB 260 is to provide a mechanism for consumers to opt out of sales, as this is the core requirement of the law. Option A is the correct answer.

Option B is incorrect, as SB 260 does not grant consumers the right to access or delete their covered information, unlike other state privacy laws such as the California Consumer Privacy Act (CCPA) or the Virginia Consumer Data Protection Act (VCDPA).

Option C is incorrect, as SB 260 does not require operators to provide a notice of financial incentive for any loyalty programs offered to their customers, unlike the CCPA.

Option D is incorrect, as SB 260 does not impose service provider restrictions on the vendors of the operators, unlike the CCPA or the VCDPA.

[IAPP CIPP/US Study Guide], Chapter 10: State Data Security Laws, pp. 229-230.

CIPP/US Practice Questions (Sample Questions), Question 33.

A cure provision in state data privacy laws gives businesses an opportunity to remediate violations of the law within a specified timeframe after receiving notice of the alleged violation. This provision is intended to promote compliance rather than immediately imposing penalties or enforcement actions.

Key Aspects of Cure Provisions:

Notice and Cure Period:

Businesses are given a timeframe (e.g., 30 days) to address the alleged violation before formal enforcement actions are taken by state authorities.

Encouraging Compliance:

Cure provisions incentivize businesses to implement corrective actions and ensure compliance without incurring fines or penalties for minor or first-time violations.

State-Specific Examples:

The California Consumer Privacy Act (CCPA) initially included a 30-day cure provision, though it was later limited under the California Privacy Rights Act (CPRA).

Other state laws, such as Virginia's Consumer Data Protection Act (VCDPA), also include cure provisions.

Explanation of Options:

A. To allow a business a limited timeframe to fix alleged violations before facing enforcement: This is correct. Cure provisions are specifically designed to give businesses an opportunity to address violations before facing enforcement actions.

B. To allow consumers a period of time to discover their data has been mishandled: This describes consumer rights related to data breach notifications, not cure provisions.

C. To allow a state to initiate formal enforcement actions for a fixed time period: Cure provisions delay enforcement actions rather than initiate them.

D. To allow certain provisions of a law to expire after a defined time period: This describes sunset provisions, not cure provisions.

Reference from CIPP/US Materials:

CCPA and CPRA: Discuss the cure provisions and their role in enforcement.

IAPP CIPP/US Certification Textbook: Highlights the purpose and impact of cure provisions in state privacy laws.

While compliance with the Safeguards Rule helps in preventing breaches and ensuring data security, it does not necessarily exempt an entity from having to provide breach notifications as required by state laws. State breach notification laws typically have their own criteria for when notification is required, which may include factors like the type of data compromised, the potential risk of harm to individuals, and other circumstances surrounding the breach. While following the GLBA Safeguards Rule may demonstrate a commitment to data security, it doesn't automatically override the notification obligations imposed by state laws when a data breach occurs.

https://dmv.ny.gov/forms/mv15dppa.pdf