IAPP Updated CIPP-E Exam Questions and Answers by miya

 According to the GDPR, the right of access by the data subject is one of the rights granted to individuals to obtain information about the processing of their personal data by a data controller1. The data controller must provide a copy of the personal data undergoing processing and additional information, such as the purposes, the categories, the recipients, the retention period, the rights, the source, and the automated decision-making of the processing1. The data controller must also inform the data subject of the existence of the right to access and the means to exercise it2.

The GDPR also specifies the time limit for responding to a data subject access request. The data controller must provide the information without undue delay and in any event within one month of receipt of the request1. This period may be extended by two further months where necessary, taking into account the complexity and number of the requests, but the data controller must inform the data subject of any such extension within one month of receipt of the request, together with the reasons for the delay1. The data controller must also verify the identity of the data subject before providing the information, but this verification should not extend the time limit for responding to the request3.

In this scenario, Mike is an EU resident who has booked travel itineraries through XYZ Travel Agency and stayed at ABC Hotel Chain’s locations. Both companies are U.S.-based multinational companies that use a common platform for collecting and sharing their customer data. Mike has signed the agreement to be a rewards program member of XYZ Travel Agency. Mike wants to know what personal information the company holds about him and sends an email requesting access to his data.

Assuming that both companies are subject to the GDPR, either because they offer goods or services to individuals in the EU or because they monitor the behavior of individuals in the EU4, they must comply with the right of access by the data subject and provide Mike with the information he requests. The time period in which Mike should receive a response to his request is not more than one month of receipt of his request, unless there are grounds for extending the period by two further months. The companies must also verify Mike’s identity before providing the information, but this verification should not affect the time limit for responding to the request.

Therefore, the correct answer is A. Not more than one month of receipt of Mike’s request.

References: 1 Article 15 of the GDPR2 Article 13 and 14 of the GDPR3 Guidelines on the right to data portability | European Data Protection Board34 Article 3 of the GDPR.

According to the E-Commerce Directive 2000/31/EC, the place of establishment for a company providing services via an Internet website is the place where the service provider effectively pursues an economic activity through a fixed establishment for an indefinite period of time. The presence and use of the technical means and technologies required to provide the service do not, in themselves, constitute an establishment of the provider. The place of establishment is determined by the place where the decisions about processing are made, not by the place where the technology supporting the website is located, where the website is accessed, or where the customer’s Internet service provider is located. This is confirmed by the GDPR, which applies to the processing of personal data in the context of the activities of an establishment of a controller or a processor in the EU, regardless of whether the processing takes place in the EU or not. References:

E-Commerce Directive 2000/31/EC, Article 2(a), Recital 191

GDPR, Article 3(1)2

Binding Corporate Rules (BCRs) are a data transfer mechanism under the GDPR that allow multinational companies to transfer personal data within their group entities outside the EU, provided that they comply with the data protection principles and rights of the GDPR. BCRs are internal codes of conduct that must be legally binding and enforced by every member of the group.

According to Article 47 of the GDPR, BCRs must be approved by the competent Data Protection Authority (DPA) in the EU, following the consistency mechanism set out in Article 63 of the GDPR. This means that the DPA that receives the application for approval of the BCRs must communicate its draft decision to the European Data Protection Board (EDPB), which will issue its opinion on the BCRs. The EDPB is an independent body composed of representatives of the national DPAs and the European Data Protection Supervisor. The EDPB ensures the consistent application of the GDPR across the EU and issues guidelines, recommendations, and best practices on various aspects of the GDPR.

Therefore, the data transfer mechanism that Alice drafted violates the GDPR because the company did not first get approval from the Data Protection Authority, which is the supervisory authority responsible for authorising and monitoring the BCRs. The company cannot rely on the BCRs as a valid legal basis for transferring personal data from the EU to the US without the DPA’s approval.

The other options are not correct, as they are not the authorities that approve the BCRs under the GDPR. The Court of Justice of the European Union (CJEU) is the judicial body of the EU that interprets and applies EU law and ensures its uniformity across the EU. The CJEU does not approve the BCRs, but it may rule on the validity or interpretation of the GDPR or other EU laws that affect data protection. The European Data Protection Board (EDPB) is an independent body that ensures the consistent application of the GDPR and issues opinions on the BCRs, but it does not approve them. The EDPB’s opinions are not binding, but they must be taken into account by the DPAs. The European Commission is the executive branch of the EU that proposes and implements EU laws and policies. The European Commission does not approve the BCRs, but it may adopt adequacy decisions that recognise that a third country or an international organisation ensures an adequate level of data protection, which is another data transfer mechanism under the GDPR.

References:

GDPR

Binding Corporate Rules (BCR)

Binding Corporate Rules - PwC

Binding Corporate Rules - GDPR Summary

A Guide for Binding Corporate Rules - Hunton Andrews Kurth

Personal data transfers: binding corporate rules (BCRs) under the GDPR

ISO 31700 is an international standard that provides high-level requirements and recommendations for organizations that use privacy by design (PbD) in the development, maintenance and operation of consumer goods and services. PbD is a concept that aims to integrate privacy into products, services and systems by default, following seven main principles: proactive not reactive, privacy as the default, privacy embedded into design, full functionality, end-to-end security, visibility and transparency, and respect for user privacy. PbD is also a legal requirement under many prominent privacy regulations across the world, such as the GDPR. ISO 31700 is based on a consumer-centric approach, where the consumer’s privacy rights and preferences are placed at the center of product development and operation.

References: Meet the new ISO 31700 standard for Privacy by Design (PbD); 7 Steps to Comply with ISO 31700-1:2023; Privacy by Design: Embracing ISO 31700-1:2023’s Consumer Protection Guidelines.