IAPP CIPP-US Online Access

The FTC’s privacy report, titled “Protecting Consumer Privacy in an Era of Rapid Change”, proposed a framework for companies that collect and use consumer data. The framework consisted of three core principles: privacy by design, simplified consumer choice, and greater transparency. Privacy by design means that companies should incorporate privacy protections into their everyday business practices, such as data security, reasonable collection limits, sound retention practices, and data accuracy. Simplified consumer choice means that companies should provide consumers with clear and easy-to-understand choices about the collection and use of their data, and respect their preferences. Greater transparency means that companies should increase the visibility and accessibility of their data practices, such as providing clear and concise privacy notices, educating consumers about the commercial datapractices, and providing consumers with access to their data. Enhancing security measures is not one of the core principles of the FTC’s privacy framework, although it is a component of the privacy by design principle. References:

• IAPP CIPP/US Body of Knowledge, Section I.A.1.a
• IAPP CIPP/US Textbook, Chapter 1, pp. 13-15
• FTC Privacy Report, Executive Summary, pp. i-vii

The Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB) as an independent agency within the Federal Reserve System. The CFPB has the authority to regulate consumer financial products and services, such as mortgages, credit cards, student loans, and payday loans. One of the main objectives of the CFPB is to promote transparency, fairness, and consumer choice in the financial marketplace. The CFPB has issued rules and guidance to require financial institutions to provide clear and accurate information to consumers about the costs, risks, and benefits of their products and services. The CFPB also has the power to enforce consumer protection laws and prohibit unfair, deceptive, or abusive acts or practices by financial institutions123 References: 1: Dodd-Frank Wall Street Reform and Consumer Protection Act, Title X, Subtitle A, Section 1011. 2: Consumer Financial Protection Bureau, Wikipedia. 3: Dodd-Frank Act: What It Does, Major Components, and Criticisms, Investopedia.

The law that is not involved in the regulation of employee background checks is B. The Gramm-Leach-Bliley Act (GLBA). The GLBA is a federal law that regulates the privacy and security of financial information collected, used, or shared by financial institutions, such as banks, insurance companies, or securities firms. The GLBA does not apply to employee background checks, unless the employer is a financial institution that obtains financial information from a consumer reporting agency for employment purposes. In that case, the employer must comply with the GLBA’s notice and opt-out requirements, as well as the FCRA’s requirements for using consumer reports. References:

• [IAPP CIPP/US Study Guide], Chapter 4: Workplace Privacy, pp. 113-114.
• IAPP CIPP/US Body of Knowledge, Section IV: Workplace Privacy, Subsection A: Employee Privacy Expectations, Topic 3: Background Checks.
• IAPP CIPP/US Practice Questions, Question 150.

The Consumer Financial Protection Bureau (CFPB) has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA), as well as other consumer financial laws. The Dodd-Frank Act, enacted in 2010, transferred most of the rulemaking responsibilities added to the FCRA by the FACTA and the Credit CARD Act from the Federal Trade Commission (FTC) to the CFPB. However, the FTC retains its enforcement authority for the FCRA and the FACTA, along with other federal and state agencies1. The CFPB also shares rulemaking authority for some provisions of the FACTA with the FTC, such as the identity theft red flags and address discrepancy rules2. The Department of Commerce and the State Attorneys General do not have rulemaking authority for the FCRA or the FACTA. References: 1: FTC3, Fair Credit Reporting Act; 2: CFPB4, Fair Credit Reporting Act; 3: FTC; 4: CFPB.