IAPP CIPP-E - Certified Information Privacy Professional/Europe (CIPP/E)

 Article 9 of the GDPR prohibits the processing of special categories of personal data, which are data that reveal sensitive information about the data subject and may pose a high risk to their rights and freedoms. The GDPR defines 10 types of personal data as special categories, which are:

personal data revealing racial or ethnic origin;

personal data revealing political opinions;

personal data revealing religious or philosophical beliefs;

personal data revealing trade union membership;

genetic data;

biometric data (where used for identification purposes);

data concerning health;

data concerning a person’s sex life; and

data concerning a person’s sexual orientation.

Among the answer choices, only option C is not one of these categories, as financial data is not considered to reveal any sensitive information about the data subject. However, financial data is still subject to the general principles and rules of the GDPR, such as lawfulness, fairness, transparency, accuracy, security, etc. References:

Special category data | ICO

Art. 9 GDPR Processing of special categories of personal data

Special Categories of Data - International Association of Privacy Professionals

Article 80(1) of the GDPR states that the data subject shall have the right to mandate a not-for-profit body, organisation or association which has been properly constituted in accordance with the law of a Member State, has statutory objectives which are in the public interest, and is active in the field of the protection of data subjects’ rights and freedoms with regard to the protection of their personal data to lodge the complaint on his or her behalf, to exercise the rights referred to in Articles 77, 78 and 79 on his or her behalf, and to exercise the right to receive compensation referred to in Article 82 on his or her behalf1. These not-for-profit bodies, organisations or associations are commonly referred to as civil society organizations, as they represent the interests of citizens and groups in the public sphere2. The other options are not correct because: (A) Law firm organizations are not necessarily not-for-profit or active in the field of data protection; © Human rights organizations are a subset of civil society organizations, but not all civil society organizations are focused on human rights; (D) Constitutional rights organizations are also a subset of civil society organizations, but not all civil society organizations are concerned with constitutional rights. References: 1: Article 80(1) of the GDPR; 2: Free CIPP/E Study Guide, page 48.

The Universal Declaration of Human Rights (UDHR) was adopted by the United Nations General Assembly in 1948 as a response to the atrocities of World War II. It is considered the first global expression of human rights and fundamental freedoms. Article 12 of the UDHR states that “No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks.” This article is the origin of privacy as a fundamental human right that has influenced many subsequent international and regional instruments, such as the European Convention of Human Rights (ECHR), the OECD Guidelines on the Protection of Privacy, and the Charter of Fundamental Rights of the European Union (CFREU). References:

IAPP CIPP/E Study Guide, page 7

[Universal Declaration of Human Rights]

[Article 12 of the UDHR]

A Data Protection Impact Assessment (DPIA) is required under Article 35 of the GDPR when data processing is likely to result in a high risk to individuals' rights and freedoms. This includes processing involving new technologies, systematic monitoring, or the large-scale processing of sensitive data​.

When should a DPIA be conducted?

Before implementing a new high-risk processing activity (e.g., a biometric access system).

Whenever a significant change in risk occurs (e.g., security updates, regulatory changes, new threats).

Regularly to reassess and mitigate emerging risks​.

Why is B the correct answer?

DPIAs are not a one-time process; they must be reviewed periodically to assess new risks​.

Why are other answers incorrect?

A (After the complaint) → A DPIA is a proactive measure, not something done only after a complaint.

C (At the end of the season) → GDPR does not require assessments to be tied to event cycles.

D (After regulatory notification) → DPIAs must be done before investigations, not as a response.

Conclusion: DPIAs should be conducted periodically when new risks arise, making B the correct answer​.

 According to the GDPR, personal data must be collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes1. This means that data controllers must inform data subjects about the purposes of data processing and obtain their consent or rely on another lawful basis for processing. Data controllers must also respect the principle of data minimisation, which means that they should only collect and process personal data that is adequate, relevant and limited to what is necessary for the purposes for which they are processed2.

In the scenario, Brady transfers his customers’ personal data to Hermes Designs, a third-party contractor, for the purpose of providing web page design services. However, Hermes Designs uses the data for a new purpose, which is creating sample customized banner advertisements and conducting direct marketing to the customers. This new purpose is not compatible with the original purpose for which the data was collected and transferred, and it is not likely that the customers have consented to it or that there is another lawful basis for it. Moreover, Hermes Designs may be processing more personal data than what is necessary for the original purpose, such as the customers’ business plans and preferences. Therefore, Brady should be concerned with Hermes Designs’ handling of customer personal data, as it may violate the GDPR and expose him to legal risks and reputational damages.

References:

1: Art. 5(1)(b) GDPR Principles relating to processing of personal data

2: Art. 5(1)© GDPR Principles relating to processing of personal data

 According to Article 5 of the GDPR, personal data must be processed in a manner that ensures appropriate security of the personal data, including protection against unauthorised or unlawful processing and against accidental loss, destruction or damage, using appropriate technical or organisational measures (‘integrity and confidentiality’)1. The company’s decision to install cameras in the entrance of the building, hallways and offices may violate this principle, as it may expose the personal data of the employees and visitors to unnecessary risks, such as hacking, misuse or disclosure. Moreover, the company must also comply with the other principles of data processing, such as lawfulness, fairness and transparency, purpose limitation, data minimisation, accuracy and storage limitation1. The company must have a legitimate and specific purpose for installing the cameras, and must inform the data subjects about the processing of their personal data. The company must also ensure that the cameras collect only the minimum amount of data necessary for the purpose, and that the data are accurate and kept for no longer than necessary. The company must also respect the rights and freedoms of the data subjects, and provide them with the means to exercise their rights, such as the right to access, rectify, erase, restrict, object or port2.

The most realistic step the company could take to address their security concerns and comply with the personal data processing principles set out in Article 5 of the GDPR is to restrict the camera placement to building entrances only. This would limit the scope and impact of the data processing, and reduce the risks to the personal data of the employees and visitors. The company would still need to inform the data subjects about the processing, and ensure that the footage is securely stored and transferred, especially if it is monitored by the home office in the United States, which is a third country that may not offer adequate protection for personal data3. The company would also need to consider the possibility of obtaining the consent of the data subjects, or relying on another legal basis for the processing, such as the legitimate interests of the company or the performance of a contract4. References:

Article 5 of the GDPR

[Article 12-23 of the GDPR]

[Article 44-50 of the GDPR]

[Article 6 of the GDPR]

 The Privacy and Electronic Communications Regulations (PECR) are derived from the e-privacy Directive 2002/58/EC, which aims to protect the privacy and confidentiality of users of electronic communications services. The PECR cover various aspects of electronic marketing, such as the use of cookies, unsolicited communications, and traffic and location data. According to the PECR, the following marketing-related activities require the consent of the user or subscriber, unless certain exemptions apply:

The use of cookies or similar technologies to store or access information on the user’s device (Regulation 6).

The sending of electronic mail for direct marketing purposes to individual subscribers who have not given their prior consent (Regulation 22).

The making of unsolicited calls for direct marketing purposes to individual subscribers who have registered their number with the Telephone Preference Service or who have objected to such calls from a specific caller (Regulation 21).

The sending of unsolicited communications for direct marketing purposes by means of electronic mail, fax, or automated calling systems to corporate subscribers, unless they have indicated that they do not wish to receive such communications (Regulation 23).

Therefore, among the four options, the one that is least likely to be covered by the provisions of the PECR is the advertisements passively displayed on a website, as they do not involve the use of cookies, the sending of unsolicited communications, or the processing of traffic or location data. However, such advertisements may still be subject to other data protection laws, such as the GDPR, if they involve the processing of personal data of the users.

References:

PECR

e-privacy Directive

ICO guide to PECR

The GDPR defines profiling as any form of automated processing of personal data to evaluate certain personal aspects relating to a natural person, such as their preferences, behaviour, or interests1. Profiling is subject to the general principles and rules of the GDPR, such as lawfulness, fairness, transparency, purpose limitation, data minimisation, accuracy, storage limitation, integrity, and confidentiality2. The GDPR also provides specific rights for data subjects who are subject to profiling, such as the right to be informed, the right to access, the right to rectify, the right to object, and the right to not be subject to a decision based solely on automated processing, including profiling, which produces legal or similarly significant effects on them3.

In the given scenario, the online shop is engaging in profiling by tracking the browsing behaviour of its European customers and predicting future purchases. It is also sharing this information with third parties, which may involve further processing of the personal data. Therefore, the online shop must comply with the GDPR requirements for profiling and ensure that it has a valid legal basis for the processing. According to Article 6 of the GDPR, there are six possible legal bases for processing personal data: consent, contract, legal obligation, vital interests, public interest, or legitimate interests4. However, not all of them are equally applicable or appropriate for profiling activities, especially when they involve sensitive or special categories of data, such as biometric, genetic, or health data, which require additional safeguards under Article 9 of the GDPR5.

In this case, the most relevant and suitable legal basis for the online shop’s profiling is consent, which means that the data subject has given a clear and affirmative indication of their agreement to the processing of their personal data for one or more specific purposes6. Consent must be freely given, specific, informed, and unambiguous, and must be obtained before the processing begins7. The online shop must also inform the data subject about the nature and purpose of the profiling, the logic involved, the consequences, and the rights they have in relation to it. The online shop must also respect the data subject’s right to withdraw their consent at any time and to object to the profiling.

Therefore, the online shop’s primary obligation while engaging in this kind of profiling is to solicit informed consent through a notice on its website, which must be clear, concise, and easily accessible, and must not be bundled with other terms and conditions. The online shop must also provide a simple and effective mechanism for the data subject to give or revoke their consent, such as a checkbox, a slider, or a button. The online shop must also keep records of the consent obtained and be able to demonstrate that it has complied with the GDPR requirements for consent.

The other options (B, C, and D) are not the primary obligation for the online shop, as they are either irrelevant or insufficient for the GDPR compliance. Seeking authorization from the European supervisory authorities is not necessary, unless the online shop is involved in a cross-border processing that requires a prior consultation under Article 36 of the GDPR. Demonstrating a prior business relationship with the customers is not a valid legal basis for the profiling, as it does not imply consent or legitimate interests. Proving that it uses sufficient security safeguards to protect customer data is a general obligation for any processing of personal data, but it does not address the specific issues and risks of profiling, such as discrimination, manipulation, or loss of control. References:

1: What is automated individual decision-making and profiling?

2: Article 5 of the GDPR

3: Rights related to automated decision making including profiling

4: [Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation)]

5: Article 9 of the GDPR

6: Article 4 (11) of the GDPR

7: Article 7 of the GDPR

: Article 13 and 14 of the GDPR

: Article 21 of the GDPR

: Article 12 of the GDPR

: [Guidelines on consent under Regulation 2016/679]

: Article 24 of the GDPR

: Article 36 of the GDPR

: [Guidelines on Automated individual decision-making and Profiling for the purposes of Regulation 2016/679]

: [https://edpb.europa.eu/sites/edpb/files/files/file1/edpb_guidelines_202005_consent_en.pdf]

: [https://edpb.europa.eu/sites/edpb/files/files/file1/20171104_wp251rev01_en.pdf]

This is not a common characteristic of cloud-computing services, as the supplier usually does not assume the vendor’s business risk. In fact, the supplier often limits its liability for data breaches or losses, and the vendor remains responsible for complying with data protection laws and regulations. The other options are common characteristics of cloud-computing services, as they reflect the nature of cloud computing as a flexible, scalable, and cost-effective way of processing data, but also pose challenges for data protection and security. References:

Free CIPP/E Study Guide, page 17, section 2.3.2

CIPP/E Certification, page 12, section 2.3.2

Cipp-e Study guides, Class notes & Summaries, page 23, section 2.3.2