CIPP-US Practice Test

Federal laws establish which of the following requirements for collecting personal information of minors under the age of 13?

A.

Implied consent from a minor’s parent or guardian, or affirmative consent from the minor.

B.

Affirmative consent from a minor’s parent or guardian before collecting the minor’s personal information online.

C.

Implied consent from a minor’s parent or guardian before collecting a minor’s personal information online, such as when they permit the minor to use the internet.

D.

Affirmative consent of a parent or guardian before collecting personal information of a minor offline (e.g., in person), which also satisfies any requirements for online consent.

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

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

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

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