SCENARIO
Please use the following to answer the next question:
Joe started the Gummy Bear Company in 2000 from his home in Vermont, USA. Today, it is a multi-billion-dollar candy company operating in every continent. All of the company’s IT servers are located in Vermont. This year Joe hires his son Ben to join the company and head up Project Big, which is a major marketing strategy to triple gross revenue in just 5 years. Ben graduated with a PhD in computer software from a top university. Ben decided to join his father’s company, but is also secretly working on launching a new global online dating website company called Ben Knows Best.
Ben is aware that the Gummy Bear Company has millions of customers and believes that many of them might also be interested in finding their perfect match. For Project Big, Ben redesigns the company’s online web portal and requires customers in the European Union and elsewhere to provide additional personal information in order to remain a customer. Project Ben begins collecting data about customers’ philosophical beliefs, political opinions and marital status.
If a customer identifies as single, Ben then copies all of that customer’s personal data onto a separate database for Ben Knows Best. Ben believes that he is not doing anything wrong, because he explicitly asks each customer to give their consent by requiring them to check a box before accepting their information. As Project Big is an important project, the company also hires a first year college student named Sam, who is studying computer science to help Ben out.
Ben calls out and Sam comes across the Ben Knows Best database. Sam is planning on going to Ireland over Spring Beak with 10 of his friends, so he copies all of the customer information of people that reside in Ireland so that he and his friends can contact people when they are in Ireland.
Joe also hires his best friend’s daughter, Alice, who just graduated from law school in the U.S., to be the company’s new General Counsel. Alice has heard about the GDPR, so she does some research on it. Alice approaches Joe and informs him that she has drafted up Binding Corporate Rules for everyone in the company to follow, as it is important for the company to have in place a legal mechanism to transfer data internally from the company’s operations in the European Union to the U.S.
Joe believes that Alice is doing a great job, and informs her that she will also be in-charge of handling a major lawsuit that has been brought against the company in federal court in the U.S. To prepare for the lawsuit, Alice instructs the company’s IT department to make copies of the computer hard drives from the entire global sales team, including the European Union, and send everything to her so that she can review everyone’s information. Alice believes that Joe will be happy that she did the first level review, as it will save the company a lot of money that would otherwise be paid to its outside law firm.
In preparing the company for its impending lawsuit, Alice’s instruction to the company’s IT Department violated Article 5 of the GDPR because the company failed to first do what?
SCENARIO
Please use the following to answer the next question:
Gentle Hedgehog Inc. is a privately owned website design agency incorporated in
Italy. The company has numerous remote workers in different EU countries. Recently,
the management of Gentle Hedgehog noticed a decrease in productivity of their sales
team, especially among remote workers. As a result, the company plans to implement
a robust but privacy-friendly remote surveillance system to prevent absenteeism,
reward top performers, and ensure the best quality of customer service when sales
people are interacting with customers.
Gentle Hedgehog eventually hires Sauron Eye Inc., a Chinese vendor of employee
surveillance software whose European headquarters is in Germany. Sauron Eye's
software provides powerful remote-monitoring capabilities, including 24/7 access to
computer cameras and microphones, screen captures, emails, website history, and
keystrokes. Any device can be remotely monitored from a central server that is
securely installed at Gentle Hedgehog headquarters. The monitoring is invisible by
default; however, a so-called Transparent Mode, which regularly and conspicuously
notifies all users about the monitoring and its precise scope, also exists. Additionally,
the monitored employees are required to use a built-in verification technology
involving facial recognition each time they log in.
After fixing the privacy problems, how long may Gentle Hedgehog store the
monitoring data, assuming that no valid data erasure request is received?
.
A news website based m (he United Slates reports primarily on North American events The website is accessible to any user regardless of location, as the website operator does not block connections from outside of the U.S. The website offers a pad subscription that requires the creation of a user account; this subscription can only be paid in U.S. dollars.
Which of the following explains why the website operator, who is the responsible for all processing related to account creation and subscriptions, is NOT required to comply with the GDPR?
Under Article 21 of the GDPR, a controller must stop profiling when requested by a data subject, unless it can demonstrate compelling legitimate grounds that override the interests of the individual. In the Guidelines on Automated individual decision-making and Profiling, the WP 29 says the controller needs to do all of the following to demonstrate that it has such legitimate grounds EXCEPT?
A data controller appoints a data protection officer. Which of the following conditions would NOT result in an infringement of Articles 37 to 39 of the GDPR?
SCENARIO
Please use the following to answer the next question:
Due to rapidly expanding workforce, Company A has decided to outsource its payroll function to Company B. Company B is an established payroll service provider with a sizable client base and a solid reputation in the industry.
Company B’s payroll solution for Company A relies on the collection of time and attendance data obtained via a biometric entry system installed in each of Company A’s factories. Company B won’t hold any biometric data itself, but the related data will be uploaded to Company B’s UK servers and used to provide the payroll service. Company B’s live systems will contain the following information for each of Company A’s employees:
Name
Address
Date of Birth
Payroll number
National Insurance number
Sick pay entitlement
Maternity/paternity pay entitlement
Holiday entitlement
Pension and benefits contributions
Trade union contributions
Jenny is the compliance officer at Company A. She first considers whether Company A needs to carry out a data protection impact assessment in relation to the new time and attendance system, but isn’t sure whether or not this is required.
Jenny does know, however, that under the GDPR there must be a formal written agreement requiring Company B to use the time and attendance data only for the purpose of providing the payroll service, and to apply appropriate technical and organizational security measures for safeguarding the data. Jenny suggests that Company B obtain advice from its data protection officer. The company doesn’t have a DPO but agrees, in the interest of finalizing the contract, to sign up for the provisions in full. Company A enters into the contract.
Weeks later, while still under contract with Company A, Company B embarks upon a separate project meant to enhance the functionality of its payroll service, and engages Company C to help. Company C agrees to extract all personal data from Company B’s live systems in order to create a new database for Company B.
This database will be stored in a test environment hosted on Company C’s U.S. server. The two companies agree not to include any data processing provisions in their services agreement, as data is only being used for IT testing purposes.
Unfortunately, Company C’s U.S. server is only protected by an outdated IT security system, and suffers a cyber security incident soon after Company C begins work on the project. As a result, data relating to Company A’s employees is visible to anyone visiting Company C’s website. Company A is unaware of this until Jenny receives a letter from the supervisory authority in connection with the investigation that ensues. As soon as Jenny is made aware of the breach, she notifies all affected employees.
The GDPR requires sufficient guarantees of a company’s ability to implement adequate technical and organizational measures. What would be the most realistic way that Company B could have fulfilled this requirement?
SCENARIO
Please use the following to answer the next question:
Financially, it has been a very good year at ARRA Hotels: Their 21 hotels, located in
Greece (5), Italy (15) and Spain (1), have registered their most profitable results
ever. To celebrate this achievement, ARRA Hotels' Human Resources office, based
in ARRA's main Italian establishment, has organized a team event for its 420
employees and their families at its hotel in Spain.
Upon arrival at the hotel, each employee and family member is given an electronic
wristband at the reception desk. The wristband serves a number of functions:
. Allows access to the "party zone" of the hotel, and emits a buzz if the user
approaches any unauthorized areas
. Allows up to three free drinks for each person of legal age, and emits a
buzz once this limit has been reached
. Grants a unique ID number for participating in the games and contests that
have been planned.
Along with the wristband, each guest receives a QR code that leads to the online
privacy notice describing the use of the wristband. The page also contains an
unchecked consent checkbox. In the case of employee family members under the
age of 16, consent must be given by a parent.
Among the various activities planned for the event, ARRA Hotels' HR office has
autonomously set up a photocall area, separate from the main event venue, where
employees can come and have their pictures taken in traditional carnival costume.
The photos will be posted on ARRA Hotels' main website for general marketing
purposes.
On the night of the event, an employee from one of ARRA's Greek hotels is
displeased with the results of the photos in which he appears. He intends to file a
complaint with the relevant supervisory authority in regard to the following:
. The lack of any privacy notice in the separate photocall area
The unlawful cross-border processing of his personal data
. The unacceptable aesthetic outcome of his photos
Assuming that there is a cross-border processing of personal data, which of the
following criteria would NOT be useful to the lead supervisory authority responsible
for the Greek employee's complaint when trying to determine the location of the
controller's main establishment?
Which mechanism, introduced by the GDPR as a means of ensuring both compliance and transparency, allows for the possibility of personal data transfers to third countries under Article 42?
TESTED 04 Jun 2025
