IAPP CIPP-C Exam Questions & Answers

In what situation is the federal Privacy Commissioner authorized to proceed to federal court?

A. For a determination on a ruling regarding privacy matters relating to the Charter of Rights and Freedom.

B. For a determination of whether or not personal information was properly withheld from release.

C. For a determination on a ruling by an administrative tribunal regarding privacy.

D. For a determination on a ruling by a provincial Privacy Commissioner.

What is a difference between the Personal Information Protection and Electronic Documents Act (PIPEDA) and the Personal Information Privacy Act (PIPA) of both Alberta and British Columbia?

A. PIPEDA applies to personal information about individuals employed by government institutions; PIPA applies to personal information about individuals employed by public-sector organizations within the provinces.

B. The enforcement powers of the federal Privacy Commissioner of Canada under PIPEDA are greater than those of the provincial privacy commissioners under PIPA.

C. PIPEDA applies to federal undertakings and to inter-provincial organizations engaged in commercial activities; PIPA applies to private organizations.

D. The person in charge of oversight of PIPEDA is a privacy commissioner; the person in charge of oversight of PIPA is an ombudsman.

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