When does the Telemarketing Sales Rule require an entity to share a do-not-call request across its organization?

A.

When the operational structures of its divisions are not transparent

B.

When the goods and services sold by its divisions are very similar

C.

When a call is not the result of an error or other unforeseen cause

D.

When the entity manages user preferences through multiple platforms

SCENARIO -
Please use the following to answer the next question:
Miraculous Healthcare is a large medical practice with multiple locations in California and Nevada. Miraculous normally treats patients in person, but has recently decided to start offering telehealth appointments, where patients can have virtual appointments with on-site doctors via a phone app.
For this new initiative, Miraculous is considering a product built by MedApps, a company that makes quality telehealth apps for healthcare practices and licenses them to be used with the practices’ branding. MedApps provides technical support for the app, which it hosts in the cloud. MedApps also offers an optional benchmarking service for providers who wish to compare their practice to others using the service.
Riya is the Privacy Officer at Miraculous, responsible for the practice's compliance with HIPAA and other applicable laws, and she works with the Miraculous procurement team to get vendor agreements in place. She occasionally assists procurement in vetting vendors and inquiring about their own compliance practices, as well as negotiating the terms of vendor agreements. Riya is currently reviewing the suitability of the MedApps app from a privacy perspective.
Riya has also been asked by the Miraculous Healthcare business operations team to review the MedApps’ optional benchmarking service. Of particular concern is the requirement that Miraculous Healthcare upload information about the appointments to a portal hosted by MedApps.
What HIPAA compliance issue would Miraculous have to consider before using the telehealth app?

A.

HIPAA does not permit healthcare providers to use cloud hosting services. 

B.

HIPAA does not permit in-person appointment data to be hosted in the cloud.

C.

HIPAA would require Miraculous and MedApps to enter into a Business Associate Agreement.

D.

HIPAA would require Miraculous to obtain patient consent before in-person appointment data can be shared with third parties.

The “Consumer Privacy Bill of Rights” presented in a 2012 Obama administration report is generally based on?

A.

The 1974 Privacy Act

B.

Common law principles

C.

European Union Directive

D.

Traditional fair information practices

SCENARIO
Please use the following to answer the next QUESTION:
You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo’s business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to
implement security measures, including industry standard encryption practices, to adequately protect the data.
However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth’s security measures. A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals – ones that exposed the PHI of public figures including celebrities and politicians. During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual’s ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient’s attorney has submitted a discovery request for the ePHI exposed in the breach.
What is the most significant reason that the U.S. Department of Health and Human Services (HHS) might impose a penalty on HealthCo?

A.

Because HealthCo did not require CloudHealth to implement appropriate physical and administrative measures to safeguard the ePHI

B.

Because HealthCo did not conduct due diligence to verify or monitor CloudHealth’s security measures

C.

Because HIPAA requires the imposition of a fine if a data breach of this magnitude has occurred

D.

Because CloudHealth violated its contract with HealthCo by not encrypting the ePHI

The FTC often negotiates consent decrees with companies found to be in violation of privacy principles. How does this benefit both parties involved?

A.

It standardizes the amount of fines.

B.

It simplifies the audit requirements.

C.

It avoids potentially harmful publicity.

D.

It spares the expense of going to trial.

In what way does the “Red Flags Rule” under the Fair and Accurate Credit Transactions Act (FACTA) relate to the owner of a grocery store who uses a money wire service?

A.

It mandates the use of updated technology for securing credit records

B.

It requires the owner to implement an identity theft warning system

C.

It is not usually enforced in the case of a small financial institution

D.

It does not apply because the owner is not a creditor

SCENARIO
Please use the following to answer the next QUESTION
Felicia has spent much of her adult life overseas, and has just recently returned to the U.S. to help her friend Celeste open a jewelry store in California. Felicia, despite being excited at the prospect, has a number of security concerns, and has only grudgingly accepted the need to hire other employees. In order to guard against the loss of valuable merchandise, Felicia wants to carefully screen applicants. With their permission, Felicia would like to run credit checks, administer polygraph tests, and scrutinize videos of interviews. She intends to read applicants’ postings on social media, ask QUESTION NO:s about drug addiction, and solicit character references. Felicia believes that if potential employees are serious about becoming part of a dynamic new business, they will readily agree to these requirements.
Felicia is also in favor of strict employee oversight. In addition to protecting the inventory, she wants to prevent mistakes during transactions, which will require video monitoring. She also wants to regularly check the company vehicle’s GPS for locations visited by employees. She also believes that employees who use their own devices for work-related purposes should agree to a certain amount of supervision.
Given her high standards, Felicia is skeptical about the proposed location of the store. She has been told that many types of background checks are not allowed under California law. Her friend Celeste thinks these worries are unfounded, as long as applicants verbally agree to the checks and are offered access to the results. Nor does Celeste share Felicia’s concern about state breach notification laws, which, she claims, would be costly to implement even on a minor scale. Celeste believes that even if the business grows a customer database of a few thousand, it’s unlikely that a state agency would hassle an honest business if an accidental security incident were to occur.
In any case, Celeste feels that all they need is common sense – like remembering to tear up sensitive documents before throwing them in the recycling bin. Felicia hopes that she’s right, and that all of her concerns will be put to rest next month when their new business consultant (who is also a privacy professional) arrives from North Carolina.
Which law will be most relevant to Felicia’s plan to ask applicants about drug addiction?

A.

The Americans with Disabilities Act (ADA).

B.

The Occupational Safety and Health Act (OSHA).

C.

The Genetic Information Nondiscrimination Act of 2008.

D.

The Health Insurance Portability and Accountability Act (HIPAA).

A financial services company install "bossware" software on its employees' remote computers to monitor performance. The software logs screenshots, mouse movements, and keystrokes to determine whether an employee is being productive. The software can also enable the computer webcams to record video footage.
Which of the following would best support an employee claim for an intrusion upon seclusion tort?

A.

The webcam is enabled to record video any time the computer is turned on.

B.

The company creates and saves a biometric template for each employee based upon keystroke dynamics.

C.

The software automatically sends a notification to a supervisor any time the employee's mouse is dormant for more than five minutes.

D.

The webcam records video of an employee using a company laptop to perform personal business while at a coffee shop during work hours.

Which of the following best describes what a “private right of action” is?

A.

The right of individuals to keep their information private. 

B.

The right of individuals to submit a request to access their information.

C.

The right of individuals harmed by data processing to have their information deleted.

D.

The right of individuals harmed by a violation of a law to file a lawsuit against the violation.

The U.S. Supreme Court has recognized an individual’s right to privacy over personal issues, such as contraception, by acknowledging which of the following?

A.

Federal preemption of state constitutions that expressly recognize an individual right to privacy.

B.

A “penumbra” of unenumerated constitutional rights as well as more general protections of due process of law.

C.

An interpretation of the U.S. Constitution’s explicit definition of privacy that extends to personal issues.

D.

The doctrine of stare decisis, which allows the U.S. Supreme Court to follow the precedent of previously decided case law.