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

SCENARIO -
Please use the following to answer the next question:
Jane is a U.S. citizen and a senior software engineer at California-based Jones Labs, a major software supplier to the U.S. Department of Defense and other U.S. federal agencies. Jane's manager, Patrick, is a French citizen who has been living in California for over a decade. Patrick has recently begun to suspect that Jane is an insider secretly transmitting trade secrets to foreign intelligence. Unbeknownst to Patrick, the FBI has already received a hint from anonymous whistleblower, and jointly with the National Security Agency is investigating Jane's possible implication in a sophisticated foreign espionage campaign.
Ever since the pandemic, Jane has been working from home. To complete her daily tasks she uses her corporate laptop, which after each login conspicuously provides notice that the equipment belongs to Jones Labs and may be monitored according to the enacted privacy policy and employment handbook. Jane also has a corporate mobile phone that she uses strictly for business, the terms of which are defined in her employment contract and elaborated upon in her employee handbook. Both the privacy policy and the employee handbook are revised annually by a reputable California law firm specializing in privacy law. Jane also has a personal iPhone that she uses for private purposes only.
Jones Labs has its primary data center in San Francisco, which is managed internally by Jones Labs engineers. The secondary data center, managed by Amazon AWS, is physically located in the UK for disaster recovery purposes. Jones Labs' mobile devices backup is managed by a mid-sized mobile defense company located in Denver, which physically stores the data in Canada to reduce costs. Jones Labs MS Office documents are securely stored in a Microsoft Office 365 data center based in Ireland. Manufacturing data of Jones Labs is stored in Taiwan and managed by a local supplier that has no presence in the U.S.
Before inspecting any GPS geolocation data from Jane's corporate mobile phone, Patrick should first do what?

A.

Obtain prior consent from Jane pursuant to the Telephone Consumer Protection Act

B.

Revise emerging workplace privacy best practices with a reputable advocacy organization.

C.

Obtain a subpoena from law enforcement, or a court order, directing Jones Labs to collect the GPS geolocation data.

D.

Ensure that such activity is permitted under Jane's employment contract or the company's employee privacy policy.

Under the Fair Credit Reporting Act (FCRA), what must a person who is denied employment based upon his credit history receive?

A.

A prompt notification from the employer.

B.

An opportunity to reapply with the employer.

C.

Information from several consumer reporting agencies (CRAs).

D.

A list of rights from the Consumer Financial Protection Bureau (CFPB).

SCENARIO
Please use the following to answer the next QUESTION
Matt went into his son’s bedroom one evening and found him stretched out on his bed typing on his laptop. “Doing your homework?” Matt asked hopefully.
“No,” the boy said. “I’m filling out a survey.”
Matt looked over his son’s shoulder at his computer screen. “What kind of survey?” “It’s asking QUESTION NO:s about my opinions.”
“Let me see,” Matt said, and began reading the list of QUESTION NO:s that his son had already answered. “It’s asking your opinions about the government and citizenship. That’s a little odd. You’re only ten.”
Matt wondered how the web link to the survey had ended up in his son’s email inbox.
Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.
To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer QUESTION NO:s about his favorite games and toys.
Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son’s inbox, and he decided it was time to report the incident to the proper authorities.
Depending on where Matt lives, the marketer could be prosecuted for violating which of the following?

A.

Investigative Consumer Reporting Agencies Act.

B.

Unfair and Deceptive Acts and Practices laws.

C.

Consumer Bill of Rights.

D.

Red Flag Rules.

Which of the following practices is NOT a key component of a data ethics framework?

A.

Automated decision-making.

B.

Preferability testing.

C.

Data governance.

D.

Auditing.

Which venture would be subject to the requirements of Section 5 of the Federal Trade Commission Act?

A.

A local nonprofit charity’s fundraiser

B.

An online merchant’s free shipping offer

C.

A national bank’s no-fee checking promotion

D.

A city bus system’s frequent rider program