If a multi-national company wanted to conduct background checks on all current and potential employees, including those based in Europe, what key provision would the company have to follow?
SCENARIO
Please use the following to answer the next question:
Joe is the new privacy manager for Who-R-U, a Canadian business that provides DNA analysis. The company is headquartered in Montreal, and all of its employees are located there. The company offers its services to Canadians only: Its website is in English and French, it accepts only Canadian currency, and it blocks internet traffic from outside of Canada (although this solution doesn’t prevent all non-Canadian traffic). It also declines to process orders that request the DNA report to be sent outside of Canada, and returns orders that show a non-Canadian return address.
Bob, the President of Who-R-U, thinks there is a lot of interest for the product in the EU, and the company is exploring a number of plans to expand its customer base.
The first plan, collegially called We-Track-U, will use an app to collect information about its current Canadian customer base. The expansion will allow its Canadian customers to use the app while traveling abroad. He suggests that the company use this app to gather location information. If the plan shows promise, Bob proposes to use push notifications and text messages to encourage existing customers to pre-register for an EU version of the service. Bob calls this work plan, We-Text-U. Once the company has gathered enough pre- registrations, it will develop EU-specific content and services.
Another plan is called Customer for Life. The idea is to offer additional services through the company’s app, like storage and sharing of DNA information with other applications and medical providers. The company’s contract says that it can keep customer DNA indefinitely, and use it to offer new services and market them to customers. It also says that customers agree not to withdraw direct marketing consent. Paul, the marketing director, suggests that the company should fully exploit these provisions, and that it can work around customers’ attempts to withdraw consent because the contract invalidates them.
The final plan is to develop a brand presence in the EU. The company has already begun this process. It is in the process of purchasing the naming rights for a building in Germany, which would come with a few offices that Who-R-U executives can use while traveling internationally. The office doesn’t include any technology or infrastructure; rather, it’s simply a room with a desk and some chairs.
On a recent trip concerning the naming-rights deal, Bob’s laptop is stolen. The laptop held unencrypted DNA reports on 5,000 Who-R-U customers, all of whom are residents of Canada. The reports include customer name, birthdate, ethnicity, racial background, names of relatives, gender, and occasionally health information.
The Customer for Life plan may conflict with which GDPR provision?
An employee of company ABCD has just noticed a memory stick containing records of client data, including their names, addresses and full contact details has disappeared. The data on the stick is unencrypted and in clear text. It is uncertain what has happened to the stick at this stage, but it likely was lost during the travel of an employee. What should the company do?
SCENARIO
Please use the following to answer the next question:
ProStorage is a multinational cloud storage provider headquartered in the Netherlands. Its CEO. Ruth Brown, has developed a two-pronged strategy for growth: 1) expand ProStorage s global customer base and 2) increase ProStorage's sales force by efficiently onboarding effective teams. Enacting this strategy has recently been complicated by Ruth's health condition, which has limited her working hours, as well as her ability to travel to meet potential customers. ProStorage's Human Resources department and Ruth's Chief of Staff now work together to manage her schedule and ensure that she is able to make all her medical appointments The latter has become especially crucial after Ruth's last trip to India, where she suffered a medical emergency and was hospitalized m New Delhi Unable to reach Ruths family, the hospital reached out to ProStorage and was able to connect with her Chief of Staff, who in coordination with Mary, the head of HR. provided information to the doctors based on accommodate on requests Ruth made when she started a: ProStorage
In support of Ruth's strategic goals of hiring more sales representatives, the Human
Resources team is focused on improving its processes to ensure that new
employees are sourced, interviewed, hired, and onboarded efficiently. To help with
this, Mary identified two vendors, HRYourWay, a German based company, and
InstaHR, an Australian based company. She decided to have both vendors go
through ProStorage's vendor risk review process so she can work with Ruth to
make the final decision. As part of the review process, Jackie, who is responsible
for maintaining ProStorage's privacy program (including maintaining controller
BCRs and conducting vendor risk assessments), reviewed both vendors but
completed a transfer impact assessment only for InstaHR. After her review of both
vendors, she determined that InstaHR satisfied more of the requirements as it
boasted a more established privacy program and provided third-party attestations,
whereas HRYourWay was a small vendor with minimal data protection operations.
Thus, she recommended InstaHR.
ProStorage's marketing team also worked to meet the strategic goals of the
company by focusing on industries where it needed to grow its market share. To
help with this, the team selected as a partner UpFinance, a US based company
with deep connections to financial industry customers. During ProStorage's
diligence process, Jackie from the privacy team noted in the transfer impact
assessment that UpFinance implements several data protection measures
including end-to-end encryption, with encryption keys held by the customer.
Notably, UpFinance has not received any government requests in its 7 years of
business. Still, Jackie recommended that the contract require UpFinance to notify
ProStorage if it receives a government request for personal data UpFinance
processes on its behalf prior to disclosing such data.
Why is the additional measure recommended by Jackie sufficient foe using UpFinance?
TESTED 19 May 2024
