IAPP CIPP-US Exam Dumps

The federal act that does NOT contain provisions for preempting stricter state laws is theTelemarketing Consumer Protection and Fraud Prevention Act1.This act authorizes the Federal Trade Commission (FTC) to establish and enforce rules for telemarketing practices, such as the Do Not Call Registry, the prohibition of robocalls, and the disclosure of material information2.However, the act also explicitly states that it does not 'annul, alter, or affect, or exempt any person subject to the provisions of this section from complying with, the laws of any State with respect to telemarketing practices, except to the extent that those laws are inconsistent with any provision of this section, and then only to the extent of the inconsistency'1. This means that states can enact and enforce their own laws regarding telemarketing, as long as they are not less protective than the federal law.In contrast, the other three acts listed in the question do contain preemption clauses that limit or override the authority of states to regulate certain aspects of electronic communications, online privacy, and credit transactions345.Reference:1:Telemarketing Consumer Protection and Fraud Prevention Act2:Telemarketing Sales Rule | Federal Trade Commission3:CAN-SPAM Act: A Compliance Guide for Business4:Children's Online Privacy Protection Rule (''COPPA'') | Federal Trade Commission5:Fair and Accurate Credit Transactions Act of 2003 - Wikipedia: IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 5: Federal Trade Commission and Consumer Privacy, p. 144-145, 149-150, 154-155

Contact tracing apps are designed to help public health authorities track and contain the spread of COVID-19 or any other diagnosed virus by notifying users who have been in close contact with an infected person. However, these apps also raise privacy concerns, as they collect and process sensitive personal data, such as health status and location information. Therefore, contact tracing apps should follow the principles of privacy by design and default, which means that they should incorporate privacy measures into their development and operation, and offer the highest level of privacy protection to users.

Some of the privacy measures that should be considered when designing contact tracing apps are:

Data retention: Contact tracing apps should only retain the personal data they collect for as long as necessary to achieve their public health purpose, and delete or anonymize the data afterwards. Data retention periods should be clearly communicated to users and based on scientific evidence and legal requirements.

Use limitations: Contact tracing apps should only use the personal data they collect for the specific and legitimate purpose of contact tracing, and not for any other purposes, such as commercial, law enforcement, or surveillance. Use limitations should be enforced by technical and organizational measures, such as encryption, access controls, and audits.

User confidentiality: Contact tracing apps should protect the confidentiality of users' personal data and identity, and not disclose them to third parties without their consent or legal authorization. User confidentiality should be ensured by technical and organizational measures, such as pseudonymization, aggregation, and data minimization.

Opt-out choice, on the other hand, is not a privacy measure that should be considered when designing contact tracing apps, as it would undermine their effectiveness and public health objective. Contact tracing apps rely on voluntary participation and widespread adoption by users to function properly and achieve their purpose. Therefore, offering users the option to opt out of the app or certain features, such as data sharing or notifications, would reduce the app's coverage and accuracy, and potentially expose users and others to greater health risks. Instead of opt-out choice, contact tracing apps should provide users with clear and transparent information about how the app works, what data it collects and how it uses it, what benefits and risks it entails, and what rights and controls users have over their data. This way, users can make an informed and voluntary decision to use the app or not, based on their own preferences and values.

[IAPP CIPP/US Study Guide], Chapter 2: Privacy by Design and Default, pp. 35-36.

[IAPP CIPP/US Body of Knowledge], Section II: Limits on Private-sector Collection and Use of Data, Subsection B: Privacy by Design, pp. 9-10.

[IAPP Glossary], Terms: Contact Tracing, Privacy by Design, Privacy by Default.

According to the Privacy Shield Framework, an organization that transfers personal data to a third party acting as an agent must ensure that the agent does all of the following1:

Uses the transferred data only for limited and specified purposes;

Provides the same level of privacy protection as is required by the Privacy Shield Principles;

Takes reasonable and appropriate steps to ensure that the agent effectively processes the personal information transferred in a manner consistent with the organization's obligations under the Principles;

Requires the agent to notify the organization if it makes a determination that it can no longer meet its obligation to provide the same level of protection as is required by the Principles;

Upon notice, takes reasonable and appropriate steps to stop and remediate unauthorized processing; and

Provides a summary or a representative copy of the relevant privacy provisions of its contract with that agent to the Department of Commerce upon request.

Therefore, the only option that is not required by the Privacy Shield Framework is D. Enters a contract with the organization that states the third party will process data according to the consent agreement. While the organization must obtain the individual's consent for certain types of data transfers, such as those involving sensitive data or onward transfers to controllers, the organization does not have to include the consent agreement in the contract with the agent.The contract must, however, ensure that the agent will process the data in accordance with the individual's choices and expectations, as well as the Privacy Shield Principles2.

According to Section 5 of the FTC Act, self-regulation primarily involves a company's right to adhere to its industry's code of conduct. Self-regulation is a process by which an industry or a group of companies voluntarily adopts and enforces standards or guidelines to protect consumers and promote fair competition. The FTC encourages self-regulation as a way to complement its enforcement efforts and address emerging issues in the marketplace. The FTC also monitors self-regulatory programs and may take action against companies that fail to comply with their own codes of conduct or misrepresent their participation in such programs.Reference:

Federal Trade Commission Act, Section 5 of

Self-Regulation | Federal Trade Commission

[IAPP CIPP/US Certified Information Privacy Professional Study Guide], Chapter 3, page 79

Data brokers are companies that collect, analyze, and share personal information about consumers for various purposes, such as marketing, risk mitigation, and research. The U.S. Federal Trade Commission (FTC) conducted a study of nine data brokers in 2012 and published a report in 2014, titled ''Data Brokers: A Call for Transparency and Accountability''. In the report, the FTC identified three broad categories of products offered by data brokers, based on the primary purposes for which the products are used by their customers.The three categories are:12

Marketing products: These products help customers target potential customers, tailor marketing offers, measure the effectiveness of marketing campaigns, and improve customer relationships. Marketing products include data elements, segments, scores, lists, and analytics that are derived from consumer data.Data brokers may provide marketing products through direct marketing (such as postal mail, e-mail, or phone), online marketing (such as online display ads, social media, or mobile apps), or marketing analytics (such as measuring consumer behavior, preferences, and trends)12

Risk mitigation products: These products help customers verify and authenticate consumers' identities, prevent fraud, and comply with legal obligations. Risk mitigation products include identity verification, identity authentication, fraud prevention, and compliance products that are based on consumer data.Data brokers may provide risk mitigation products through various methods, such as matching consumer-provided information with data broker records, generating questions or challenges based on consumer data, or providing scores or indicators of fraud risk or compliance status12

Research products: These products help customers understand consumer behavior, preferences, and trends, as well as market conditions, industry developments, and economic factors. Research products include reports, studies, statistics, and insights that are derived from consumer data.Data brokers may provide research products through various formats, such as online portals, dashboards, newsletters, or custom reports12

The FTC report did not include location of individuals as one of the three broad categories of products offered by data brokers. Location of individuals may be a specific type of product or service that some data brokers provide, but it is not a primary purpose for which data brokers use consumer data. Therefore, the correct answer is C. Location of individuals (such as identifying an individual from partial information).

Data Brokers: A Call For Transparency and Accountability: A Report of the Federal Trade Commission (May 2014)

IAPP CIPP/US Certified Information Privacy Professional Study Guide, Chapter 5: State Privacy Laws, Section 5.3: Data Broker Laws