Exam4Training

IAPP CIPP-US Certified Information Privacy Professional/United States (CIPP/US) Online Training

Question #1

Which jurisdiction must courts have in order to hear a particular case?

  • A . Subject matter jurisdiction and regulatory jurisdiction
  • B . Subject matter jurisdiction and professional jurisdiction
  • C . Personal jurisdiction and subject matter jurisdiction
  • D . Personal jurisdiction and professional jurisdiction

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Correct Answer: C
C

Explanation:

Reference: https://webcache.googleusercontent.com/search?q=cache:kG3AN4srIh8J:https://www.shsu.edu/~klett/chapter%25202%2520bl281%2520judicial%2520review%2520new.htm+&cd=1&hl=en&ct=clnk&gl=pk&client=firefox-b-e

Question #2

Which authority supervises and enforces laws regarding advertising to children via the Internet?

  • A . The Office for Civil Rights
  • B . The Federal Trade Commission
  • C . The Federal Communications Commission
  • D . The Department of Homeland Security

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Correct Answer: B
B

Explanation:

Reference: https://www.ftc.gov/sites/default/files/documents/public_statements/advertising-kids-and-ftc-regulatory-retrospective-advises-present/040802adstokids.pdf

Question #3

According to Section 5 of the FTC Act, self-regulation primarily involves a company’s right to do what?

  • A . Determine which bodies will be involved in adjudication
  • B . Decide if any enforcement actions are justified
  • C . Adhere to its industry’s code of conduct
  • D . Appeal decisions made against it

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Correct Answer: C
C

Explanation:

See IAPP book, Section 3.10, paragraph 2.

Reference: https://www.ftc.gov/about-ftc/what-we-do/enforcement-authority

Question #4

Which was NOT one of the five priority areas listed by the Federal Trade Commission in its 2012 report, “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers”?

  • A . International data transfers
  • B . Large platform providers
  • C . Promoting enforceable self-regulatory codes
  • D . Do Not Track

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Correct Answer: A
A

Explanation:

Reference: https://www.ftc.gov/news-events/press-releases/2012/03/ftc-issues-final-commission-report-protecting-consumer-privacy

Question #5

The “Consumer Privacy Bill of Rights” presented in a 2012 Obama administration report is generally based on?

  • A . The 1974 Privacy Act
  • B . Common law principles
  • C . European Union Directive
  • D . Traditional fair information practices

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Correct Answer: D
D

Explanation:

"he 2012 White House Report contains a preface signed by President Obama and defines the “Consumer Privacy Bill of Rights” based on traditional fair information practices (FIPs)."

Reference: https://obamawhitehouse.archives.gov/sites/default/files/privacy-final.pdf

Question #6

What is a legal document approved by a judge that formalizes an agreement between a governmental agency and an adverse party called?

  • A . A consent decree
  • B . Stare decisis decree
  • C . A judgment rider
  • D . Common law judgment

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Correct Answer: A
Question #7

Read this notice:

Our website uses cookies. Cookies allow us to identify the computer or device you’re using to access the site, but they don’t identify you personally. For instructions on setting your Web browser to refuse cookies, click here.

What type of legal choice does not notice provide?

  • A . Mandatory
  • B . Implied consent
  • C . Opt-in
  • D . Opt-out

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Correct Answer: D
Question #8

SCENARIO

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 best reason for Cheryl to follow Janice’s suggestion about classifying customer data?

  • A . It will help employees stay better organized
  • B . It will help the company meet a federal mandate
  • C . It will increase the security of customers’ personal information (PI)
  • D . It will prevent the company from collecting too much personal information (PI)

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Correct Answer: C
C

Explanation:

Reference: https://eits.uga.edu/access_and_security/infosec/pols_regs/policies/dcps/

Question #9

SCENARIO

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

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Correct Answer: A
Question #10

SCENARIO

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 main problem with Cheryl’s suggested method of communicating the new privacy policy?

  • A . The policy would not be considered valid if not communicated in full.
  • B . The policy might not be implemented consistency across departments.
  • C . Employees would not be comfortable with a policy that is put into action over time.
  • D . Employees might not understand how the documents relate to the policy as a whole.

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Correct Answer: B

Question #11

SCENARIO

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.

Based on the scenario, which of the following would have helped Janice to better meet the company’s needs?

  • A . Creating a more comprehensive plan for implementing a new policy
  • B . Spending more time understanding the company’s information goals
  • C . Explaining the importance of transparency in implementing a new policy
  • D . Removing the financial burden of the company’s employee training program

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Correct Answer: B
Question #12

According to the FTC Report of 2012, what is the main goal of Privacy by Design?

  • A . Obtaining consumer consent when collecting sensitive data for certain purposes
  • B . Establishing a system of self-regulatory codes for mobile-related services
  • C . Incorporating privacy protections throughout the development process
  • D . Implementing a system of standardization for privacy notices

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Correct Answer: C
C

Explanation:

Reference: https://www.ftc.gov/sites/default/files/documents/reports/federal-trade-commission-report-protecting-consumer-privacy-era-rapid-change-recommendations/120326privacyreport.pdf

Question #13

What is the main reason some supporters of the European approach to privacy are skeptical about self-regulation of privacy practices?

  • A . A large amount of money may have to be sent on improved technology and security
  • B . Industries may not be strict enough in the creation and enforcement of rules
  • C . A new business owner may not understand the regulations
  • D . Human rights may be disregarded for the sake of privacy

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Correct Answer: B
Question #14

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

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Correct Answer: A
A

Explanation:

Reference: https://en.wikipedia.org/wiki/Global_Privacy_Enforcement_Network

Question #15

In 2014, Google was alleged to have violated the Family Educational Rights and Privacy Act (FERPA) through its Apps for Education suite of tools. For what specific practice did students sue the company?

  • A . Scanning emails sent to and received by students
  • B . Making student education records publicly available
  • C . Relying on verbal consent for a disclosure of education records
  • D . Disclosing education records without obtaining required consent

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Correct Answer: A
A

Explanation:

Reference: https://www.edweek.org/ew/articles/2014/03/13/26google.h33.html

Question #16

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 . An online merchant’s free shipping offer
  • C . A national bank’s no-fee checking promotion
  • D . A city bus system’s frequent rider program

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Correct Answer: B
Question #17

An organization self-certified under Privacy Shield must, upon request by an individual, do what?

  • A . Suspend the use of all personal information collected by the organization to fulfill its original purpose.
  • B . Provide the identities of third parties with whom the organization shares personal information.
  • C . Provide the identities of third and fourth parties that may potentially receive personal information.
  • D . Identify all personal information disclosed during a criminal investigation.

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Correct Answer: B
B

Explanation:

Reference: https://www.lakesidesoftware.com/sites/default/files/Privacy_Shield_Privacy_Statement.pdf

Question #18

Which of the following federal agencies does NOT enforce the Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA)?

  • A . The Office of the Comptroller of the Currency
  • B . The Consumer Financial Protection Bureau
  • C . The Department of Health and Human Services
  • D . The Federal Trade Commission

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Correct Answer: C
C

Explanation:

Reference: https://en.wikipedia.org/wiki/Fair_and_Accurate_Credit_Transactions_Act

Question #19

SCENARIO

Please use the following to answer the next question:

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer’s data handling practices.

The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: “Please act immediately by identifying all personal data received from our company.”

This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup’s rapid market penetration.

As the Company’s data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

At this stage of the investigation, what should the data privacy leader review first?

  • A . Available data flow diagrams
  • B . The text of the original complaint
  • C . The company’s data privacy policies
  • D . Prevailing regulation on this subject

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Correct Answer: D
Question #20

SCENARIO

Please use the following to answer the next question:

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer’s data handling practices.

The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: “Please act immediately by identifying all personal data received from our company.”

This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup’s rapid market penetration.

As the Company’s data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

Upon review, the data privacy leader discovers that the Company’s documented data inventory is obsolete.

What is the data privacy leader’s next best source of information to aid the investigation?

  • A . Reports on recent purchase histories
  • B . Database schemas held by the retailer
  • C . Lists of all customers, sorted by country
  • D . Interviews with key marketing personnel

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Correct Answer: C

Question #21

SCENARIO

Please use the following to answer the next question:

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer’s data handling practices.

The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: “Please act immediately by identifying all personal data received from our company.”

This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup’s rapid market penetration.

As the Company’s data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

Under the General Data Protection Regulation (GDPR), how would the U.S.-based startup company most likely be classified?

  • A . As a data supervisor
  • B . As a data processor
  • C . As a data controller
  • D . As a data manager

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Correct Answer: B
B

Explanation:

Processor is the answer and correct based on the fact that the EU retailer was collecting consents and sending data internationally to US. The distractor of lack of consent and the instruction somehow implied that it now needs to be adhered to by the processor despite controller EU Retailer messing up should be mindfully sidestepped. Supervisor and Controller are synonymous with both terms used in the GDPR. Data manager is not a term used in GDPR.

Reference: https://www.i-scoop.eu/gdpr/data-processor-gdpr/

Question #22

SCENARIO

Please use the following to answer the next question:

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer’s data handling practices.

The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: “Please act immediately by identifying all personal data received from our company.”

This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup’s rapid market penetration.

As the Company’s data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

Under the GDPR, the complainant’s request regarding her personal information is known as what?

  • A . Right of Access
  • B . Right of Removal
  • C . Right of Rectification
  • D . Right to Be Forgotten

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Correct Answer: B
Question #23

In which situation would a policy of “no consumer choice” or “no option” be expected?

  • A . When a job applicant’s credit report is provided to an employer
  • B . When a customer’s financial information is requested by the government
  • C . When a patient’s health record is made available to a pharmaceutical company
  • D . When a customer’s street address is shared with a shipping company

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Correct Answer: D
D

Explanation:

“For example, a consumer who orders a product online expects their personal information to be shared with the shipping company, the credit card processor, and others who are engaged in fulfilling the transactions. The consumer does not expect to have to sign an opt-in or be offered an opt-out option for the shipping company to learn the address”

Excerpt From

IAPP_US_TB_US-Private-Sector-Privacy-3E_1.0

Reference: https://privacyproficient.com/what-is-no-option-or-no-consumer-choice/

Question #24

What is the main challenge financial institutions face when managing user preferences?

  • A . Ensuring they are in compliance with numerous complex state and federal privacy laws
  • B . Developing a mechanism for opting out that is easy for their consumers to navigate
  • C . Ensuring that preferences are applied consistently across channels and platforms
  • D . Determining the legal requirements for sharing preferences with their affiliates

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Correct Answer: C
Question #25

A large online bookseller decides to contract with a vendor to manage Personal Information (PI).

What is the least important factor for the company to consider when selecting the vendor?

  • A . The vendor’s reputation
  • B . The vendor’s financial health
  • C . The vendor’s employee retention rates
  • D . The vendor’s employee training program

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Correct Answer: C
C

Explanation:

While it is important for a company to consider the reputation and financial health of a vendor, as well as their employee training program, the retention rates of the vendor’s employees are not a direct indicator of the vendor’s ability to protect personal information. It is important for the company to ensure that the vendor has appropriate security measures in place to protect personal information, such as access controls, encryption, and data breach response procedures. The company should also consider the vendor’s compliance with applicable privacy and data protection laws, as well as their experience working with sensitive personal information. Overall, while employee retention rates may indirectly reflect the quality of the vendor’s services, they are not a direct factor in assessing the vendor’s ability to manage personal information.

Question #26

In which situation is a company operating under the assumption of implied consent?

  • A . An employer contacts the professional references provided on an applicant’s resume
  • B . An online retailer subscribes new customers to an e-mail list by default
  • C . A landlord uses the information on a completed rental application to run a credit report
  • D . A retail clerk asks a customer to provide a zip code at the check-out counter

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Correct Answer: A
A

Explanation:

Reference: https://en.wikipedia.org/wiki/Implied_consent

Question #27

All of the following are tasks in the “Discover” phase of building an information management program EXCEPT?

  • A . Facilitating participation across departments and levels
  • B . Developing a process for review and update of privacy policies
  • C . Deciding how aggressive to be in the use of personal information
  • D . Understanding the laws that regulate a company’s collection of information

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Correct Answer: D
Question #28

Which of the following describes the most likely risk for a company developing a privacy policy with standards that are much higher than its competitors?

  • A . Being more closely scrutinized for any breaches of policy
  • B . Getting accused of discriminatory practices
  • C . Attracting skepticism from auditors
  • D . Having a security system failure

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Correct Answer: A
Question #29

If an organization certified under Privacy Shield wants to transfer personal data to a third party acting as an agent, the organization must ensure the third party does all of the following EXCEPT?

  • A . Uses the transferred data for limited purposes
  • B . Provides the same level of privacy protection as the organization
  • C . Notifies the organization if it can no longer meet its requirements for proper data handling
  • D . Enters a contract with the organization that states the third party will process data according to the consent agreement

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Correct Answer: D
D

Explanation:

Reference: https://www.privacyshield.gov/Key-New-Requirements

Question #30

What was the original purpose of the Federal Trade Commission Act?

  • A . To ensure privacy rights of U.S. citizens
  • B . To protect consumers
  • C . To enforce antitrust laws
  • D . To negotiate consent decrees with companies violating personal privacy

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Correct Answer: C
C

Explanation:

IAPP book, Section 3.3, first sentence. "The FTC was founded in 1914 to enforce antitrust laws, and its general consumer protection mission was established by a statutory change in 1938." In particular in considering this answer, note that the FTC Act was initially passed in 1914.

Reference: https://www.ftc.gov/about-ftc

Question #31

SCENARIO

Please use the following to answer the next question:

Matt went into his son’s bedroom one evening and found him stretched out on his bed typing on his laptop. “Doing your network?” Matt asked hopefully. “No,” the boy said. “I’m filling out a survey.”

Matt looked over his son’s shoulder at his computer screen. “What kind of survey?” “It’s asking questions about my opinions.”

“Let me see,” Matt said, and began reading the list of questions that his son had already answered. “It’s asking your opinions about the government and citizenship. That’s a little odd. You’re only ten.”

Matt wondered how the web link to the survey had ended up in his son’s email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.

To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer questions about his favorite games and toys.

Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son’s inbox, and he decided it was time to report the incident to the proper authorities.

Based on the incident, the FTC’s enforcement actions against the marketer would most likely include what violation?

  • A . Intruding upon the privacy of a family with young children.
  • B . Collecting information from a child under the age of thirteen.
  • C . Failing to notify of a breach of children’s private information.
  • D . Disregarding the privacy policy of the children’s marketing industry.

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Correct Answer: B
B

Explanation:

Reference: https://www.ftc.gov/system/files/2012-31341.pdf

Question #32

SCENARIO

Please use the following to answer the next question:

Matt went into his son’s bedroom one evening and found him stretched out on his bed typing on his laptop. “Doing your network?” Matt asked hopefully. “No,” the boy said. “I’m filling out a survey.”

Matt looked over his son’s shoulder at his computer screen. “What kind of survey?” “It’s asking questions about my opinions.”

“Let me see,” Matt said, and began reading the list of questions that his son had already answered. “It’s asking your opinions about the government and citizenship. That’s a little odd. You’re only ten.”

Matt wondered how the web link to the survey had ended up in his son’s email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.

To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer questions about his favorite games and toys.

Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son’s inbox, and he decided it was time to report the incident to the proper authorities.

How does Matt come to the decision to report the marketer’s activities?

  • A . The marketer failed to make an adequate attempt to provide Matt with information
  • B . The marketer did not provide evidence that the prize books were appropriate for children
  • C . The marketer seems to have distributed his son’s information without Matt’s permission
  • D . The marketer failed to identify himself and indicate the purpose of the messages

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

Reference: https://www.ftc.gov/system/files/2012-31341.pdf

Question #33

SCENARIO

Please use the following to answer the next question:

Matt went into his son’s bedroom one evening and found him stretched out on his bed typing on his laptop. “Doing your network?” Matt asked hopefully. “No,” the boy said. “I’m filling out a survey.”

Matt looked over his son’s shoulder at his computer screen. “What kind of survey?” “It’s asking questions about my opinions.”

“Let me see,” Matt said, and began reading the list of questions that his son had already answered. “It’s asking your opinions about the government and citizenship. That’s a little odd. You’re only ten.”

Matt wondered how the web link to the survey had ended up in his son’s email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.

To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer questions about his favorite games and toys.

Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son’s inbox, and he decided it was time to report the incident to the proper authorities.

How could the marketer have best changed its privacy management program to meet COPPA “Safe Harbor” requirements?

  • A . By receiving FTC approval for the content of its emails
  • B . By making a COPPA privacy notice available on website
  • C . By participating in an approved self-regulatory program
  • D . By regularly assessing the security risks to consumer privacy

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

COPPA safe harbor programs comprise industry groups that self-regulate their member-operators and establish their own guidelines and requirements that must guarantee the same or greater protection for children as the standards set forth in the COPPA rule.

Question #34

What important action should a health care provider take if the she wants to qualify for funds under the Health Information Technology for Economic and Clinical Health Act (HITECH)?

  • A . Make electronic health records (EHRs) part of regular care
  • B . Bill the majority of patients electronically for their health care
  • C . Send health information and appointment reminders to patients electronically
  • D . Keep electronic updates about the Health Insurance Portability and Accountability Act

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

What funding did the HITECH Act provide healthcare? The Department of Health & Human Services (HHS) was given a budget in excess of $25 billion to achieve the goals of the HITECH Act. The HHS used some of that budget to fund the Meaningful Use program C a program that incentivized care providers to adopt certified EHRs by offering monetary incentives

Reference: https://www.healthaffairs.org/do/10.1377/hblog20150304.045199/full/

Question #35

All of the following organizations are specified as covered entities under the Health Insurance Portability and Accountability Act (HIPAA) EXCEPT?

  • A . Healthcare information clearinghouses
  • B . Pharmaceutical companies
  • C . Healthcare providers
  • D . Health plans

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

Reference: https://www.hhs.gov/hipaa/for-professionals/covered-entities/index.html

Question #36

A covered entity suffers a ransomware attack that affects the personal health information (PHI) of more than 500 individuals.

According to Federal law under HIPAA, which of the following would the covered entity NOT have to report the breach to?

  • A . Department of Health and Human Services
  • B . The affected individuals
  • C . The local media
  • D . Medical providers

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

https://www.hhs.gov/hipaa/for-professionals/breach-notification/index.html Following a breach of unsecured protected health information, covered entities must provide notification of the breach to affected individuals, the Secretary, and, in certain circumstances, to the media. In addition, business associates must notify covered entities if a breach occurs at or by the business associate.

Reference: https://www.hhs.gov/sites/default/files/RansomwareFactSheet.pdf (page 6)

Question #37

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

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

Reference: https://www.investopedia.com/terms/f/facta.asp

Question #38

Who has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA)?

  • A . State Attorneys General
  • B . The Federal Trade Commission
  • C . The Department of Commerce
  • D . The Consumer Financial Protection Bureau

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

Reference: https://www.ftc.gov/enforcement/statutes/fair-accurate-credit-transactions-act-2003

Question #39

Under the Fair and Accurate Credit Transactions Act (FACTA), what is the most appropriate action for a car dealer holding a paper folder of customer credit reports?

  • A . To follow the Disposal Rule by having the reports shredded
  • B . To follow the Red Flags Rule by mailing the reports to customers
  • C . To follow the Privacy Rule by notifying customers that the reports are being stored
  • D . To follow the Safeguards Rule by transferring the reports to a secure electronic file

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

"The Disposal Rule requires any individual or entity that uses a consumer report, or information derived from a consumer report, for a business purpose to dispose of that consumer information in a way that prevents unauthorized access and misuse of the data. Consumer reports can be electronic or written. The rule applies to both small and large organizations, including consumer reporting agencies, lenders, employers, insurers, landlords, car dealers, attorneys, debt collectors, and government agencies." and "Examples of acceptable, reasonable measures include developing and complying with policies to: Burn, pulverize or shred papers containing consumer report information so that the information cannot be read or reconstructed Destroy or erase electronic files or media containing consumer report information so that the information cannot be read or reconstructed Conduct due diligence and hire a document destruction contractor to dispose of material specifically identified as consumer report information consistent with the rule"

Question #40

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.

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

https://www.ftc.gov/business-guidance/resources/how-comply-privacy-consumer-financial-

information-rule-gramm-leach-bliley-act "If you share their NPI with nonaffiliated third parties outside of three exceptions (see "Exceptions"), you must give your consumers and customers an "opt-out notice" that clearly and conspicuously describes their right to opt out of the information being shared. An opt-out notice must be delivered with a privacy notice, and it can be part of the privacy notice."

Reference: https://www.ftc.gov/tips-advice/business-center/guidance/how-comply-privacy-consumer-financial-information-rule-gramm

Question #41

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

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

Reference: https://www.investopedia.com/terms/g/glba.asp

Question #42

SCENARIO

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.

What is the most likely way that Declan might directly violate the Health Insurance Portability and Accountability Act (HIPAA)?

  • A . By being present when patients are checking in
  • B . By speaking to a patient without prior authorization
  • C . By ignoring the conversation about a potential breach
  • D . By following through with his plans for his upcoming paper

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

"Other than for treatment, covered entities must make reasonable efforts to limit the use and disclosure of PHI to the minimum necessary in order to accomplish the intended purpose." He isn’t involved in the potential breach, which is why he isn’t trained for it, and doesn’t know all the facts of the situation. He has not obligation doesn’t need to investigate any further based on anything that he heard.

Question #43

SCENARIO

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

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

It is important for test takers to not add additional information to the prompt by assuming information. By choosing D, you are assuming that Declan will stay long enough in the position that he will personally see to it that every first time patient receives a privacy notice. By choosing C, you are answering the exact question by addressing the paper waste concern and complying with HIPAA which allows covered entities to post privacy notices on websites. Model Notices of Privacy Practices on the HHS website outlines two requirements: A covered entity must make its notice available to any person who asks for it (satisfies pointing the person in the direction of the covered entity website); A covered entity must prominently post and make available its notice on any web site it maintains that provides information about its customer services or benefits (satisfies pointing the person to the covered entity website to view privacy notice).

Question #44

SCENARIO

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.

Based on the scenario, what is the most likely way Declan’s supervisor would answer his question about the hospital’s use of a billing company?

  • A . By suggesting that Declan look at the hospital’s publicly posted privacy policy
  • B . By assuring Declan that third parties are prevented from seeing Private Health Information (PHI)
  • C . By pointing out that contracts are in place to help ensure the observance of minimum security standards
  • D . By describing how the billing system is integrated into the hospital’s electronic health records (EHR) system

Reveal Solution Hide Solution

Correct Answer: C
Question #45

Which entities must comply with the Telemarketing Sales Rule?

  • A . For-profit organizations and for-profit telefunders regarding charitable solicitations
  • B . Nonprofit organizations calling on their own behalf
  • C . For-profit organizations calling businesses when a binding contract exists between them
  • D . For-profit and not-for-profit organizations when selling additional services to establish customers

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

Some types of businesses are not covered by the TSR even though they conduct telemarketing campaigns that may involve some interstate telephone calls to sell goods or services. These three types of entities are not subject to the FTC’s jurisdiction, and are not covered by the TSR:

Question #45

Which entities must comply with the Telemarketing Sales Rule?

  • A . For-profit organizations and for-profit telefunders regarding charitable solicitations
  • B . Nonprofit organizations calling on their own behalf
  • C . For-profit organizations calling businesses when a binding contract exists between them
  • D . For-profit and not-for-profit organizations when selling additional services to establish customers

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

Some types of businesses are not covered by the TSR even though they conduct telemarketing campaigns that may involve some interstate telephone calls to sell goods or services. These three types of entities are not subject to the FTC’s jurisdiction, and are not covered by the TSR:

Question #45

Which entities must comply with the Telemarketing Sales Rule?

  • A . For-profit organizations and for-profit telefunders regarding charitable solicitations
  • B . Nonprofit organizations calling on their own behalf
  • C . For-profit organizations calling businesses when a binding contract exists between them
  • D . For-profit and not-for-profit organizations when selling additional services to establish customers

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

Some types of businesses are not covered by the TSR even though they conduct telemarketing campaigns that may involve some interstate telephone calls to sell goods or services. These three types of entities are not subject to the FTC’s jurisdiction, and are not covered by the TSR:

Question #45

Which entities must comply with the Telemarketing Sales Rule?

  • A . For-profit organizations and for-profit telefunders regarding charitable solicitations
  • B . Nonprofit organizations calling on their own behalf
  • C . For-profit organizations calling businesses when a binding contract exists between them
  • D . For-profit and not-for-profit organizations when selling additional services to establish customers

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

Some types of businesses are not covered by the TSR even though they conduct telemarketing campaigns that may involve some interstate telephone calls to sell goods or services. These three types of entities are not subject to the FTC’s jurisdiction, and are not covered by the TSR:

Question #49

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

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

https://www.ftc.gov/business-guidance/resources/complying-telemarketing-sales-rule#writtenagreement What must the written agreement contain? A written agreement need only contain: – unambiguous evidence that a call recipient is willing to receive telephone calls that deliver a – prerecorded message by or on behalf of a specific seller; the telephone number to which such messages may be delivered; and – the call recipient’s signature.

Question #50

When does the Telemarketing Sales Rule require an entity to share a do-not-call request across its organization?

  • A . When the operational structures of its divisions are not transparent
  • B . When the goods and services sold by its divisions are very similar
  • C . When a call is not the result of an error or other unforeseen cause
  • D . When the entity manages user preferences through multiple platforms

Reveal Solution Hide Solution

Correct Answer: C

Question #51

Within what time period must a commercial message sender remove a recipient’s address once they have asked to stop receiving future e-mail?

  • A . 7 days
  • B . 10 days
  • C . 15 days
  • D . 21 days

Reveal Solution Hide Solution

Correct Answer: B
B

Explanation:

Reference: https://www.ftc.gov/tips-advice/business-center/guidance/can-spam-act-compliance-guide- business

Question #52

A student has left high school and is attending a public postsecondary institution.

Under what condition may a school legally disclose educational records to the parents of the student without consent?

  • A . If the student has not yet turned 18 years of age
  • B . If the student is in danger of academic suspension
  • C . If the student is still a dependent for tax purposes
  • D . If the student has applied to transfer to another institution

Reveal Solution Hide Solution

Correct Answer: C
C

Explanation:

https://es.vccs.edu/about/family-educational-rights-and-privacy-act-ferpa/ The disclosure is to a parent who legally declares the student as a dependent, as defined by 20 U.S.C. § 1232g. (NOTE: Regardless of the student’s age, a parent seeking access to their son or daughter’s educational record must present proof upon each request of their child’s dependency to the Registrar’s Office by way of the most recent year’s federal tax return.)

Reference: https://www2.ed.gov/policy/gen/guid/fpco/pdf/ferpafaq.pdf

Question #53

In what way does the “Red Flags Rule” under the Fair and Accurate Credit Transactions Act (FACTA) relate to the owner of a grocery store who uses a money wire service?

  • A . It mandates the use of updated technology for securing credit records
  • B . It requires the owner to implement an identity theft warning system
  • C . It is not usually enforced in the case of a small financial institution
  • D . It does not apply because the owner is not a creditor

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

https://www.ftc.gov/business-guidance/resources/fighting-identity-theft-red-flags-rule-how-guide-business#who

Question #54

Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

  • A . Financial institutions must avoid collecting a customer’s sensitive personal information
  • B . Financial institutions must help ensure a customer’s understanding of products and services
  • C . Financial institutions must use a prescribed level of encryption for most types of customer records
  • D . Financial institutions must cease sending e-mails and other forms of advertising to customers who opt out of direct marketing

Reveal Solution Hide Solution

Correct Answer: B
Question #55

Which act violates the Family Educational Rights and Privacy Act of 1974 (FERPA)?

  • A . A K-12 assessment vendor obtains a student’s signed essay about her hometown from her school to use as an exemplar for public release
  • B . A university posts a public student directory that includes names, hometowns, e-mail addresses, and majors
  • C . A newspaper prints the names, grade levels, and hometowns of students who made the quarterly honor roll
  • D . University police provide an arrest report to a student’s hometown police, who suspect him of a similar crime

Reveal Solution Hide Solution

Correct Answer: A
Question #56

According to FERPA, when can a school disclose records without a student’s consent?

  • A . If the disclosure is not to be conducted through email to the third party
  • B . If the disclosure would not reveal a student’s student identification number
  • C . If the disclosure is to practitioners who are involved in a student’s health care
  • D . If the disclosure is to provide transcripts to a school where a student intends to enroll

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

Reference: https://www2.ed.gov/policy/gen/guid/fpco/ferpa/index.html

Question #57

What is the main purpose of the CAN-SPAM Act?

  • A . To diminish the use of electronic messages to send sexually explicit materials
  • B . To authorize the states to enforce federal privacy laws for electronic marketing
  • C . To empower the FTC to create rules for messages containing sexually explicit content
  • D . To ensure that organizations respect individual rights when using electronic advertising

Reveal Solution Hide Solution

Correct Answer: D
D

Explanation:

Reference: https://www.ftc.gov/tips-advice/business-center/guidance/can-spam-act-compliance-guide-business

Question #58

The Video Privacy Protection Act of 1988 restricted which of the following?

  • A . Which purchase records of audio visual materials may be disclosed
  • B . When downloading of copyrighted audio visual materials is allowed
  • C . When a user’s viewing of online video content can be monitored
  • D . Who advertisements for videos and video games may target

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

Reference: https://searchcompliance.techtarget.com/definition/Video-Privacy-Protection-Act-of-1988

Question #59

The Cable Communications Policy Act of 1984 requires which activity?

  • A . Delivery of an annual notice detailing how subscriber information is to be used
  • B . Destruction of personal information a maximum of six months after it is no longer needed
  • C . Notice to subscribers of any investigation involving unauthorized reception of cable services
  • D . Obtaining subscriber consent for disseminating any personal information necessary to render cable services

Reveal Solution Hide Solution

Correct Answer: A
A

Explanation:

Reference: https://www.fcc.gov/media/engineering/cable-television

Question #60

What is the main purpose of requiring marketers to use the Wireless Domain Registry?

  • A . To access a current list of wireless domain names
  • B . To prevent unauthorized emails to mobile devices
  • C . To acquire authorization to send emails to mobile devices
  • D . To ensure their emails are sent to actual wireless subscribers

Reveal Solution Hide Solution

Correct Answer: B

Question #61

SCENARIO

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 C 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.

What is the most significant reason that the U.S. Department of Health and Human Services (HHS) might impose a penalty on HealthCo?

  • A . Because HealthCo did not require CloudHealth to implement appropriate physical and administrative measures to safeguard the ePHI
  • B . Because HealthCo did not conduct due diligence to verify or monitor CloudHealth’s security measures
  • C . Because HIPAA requires the imposition of a fine if a data breach of this magnitude has occurred
  • D . Because CloudHealth violated its contract with HealthCo by not encrypting the ePHI

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Correct Answer: B
Question #62

SCENARIO

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 C 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.

What is the most effective kind of training CloudHealth could have given its employees to help prevent this type of data breach?

  • A . Training on techniques for identifying phishing attempts
  • B . Training on the terms of the contractual agreement with HealthCo
  • C . Training on the difference between confidential and non-public information
  • D . Training on CloudHealth’s HR policy regarding the role of employees involved data breaches

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Correct Answer: A
Question #63

SCENARIO

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 C 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.

Of the safeguards required by the HIPAA Security Rule, which of the following is NOT at issue due to HealthCo’s actions?

  • A . Administrative Safeguards
  • B . Technical Safeguards
  • C . Physical Safeguards
  • D . Security Safeguards

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Correct Answer: C
C

Explanation:

Section 8.1.2 of the textbook lists the Security Rule Safeguards as admin, technical and physical.

Security safeguards are not considered one of the three categories.

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