IAPP Updated CIPP-US Exam Questions and Answers by bailey

The FTC alleged that Google violated its own privacy policies, engaged in deceptive trade practices, and failed to comply with Safe Harbor principles when it launched Google Buzz, a social networking service that automatically enrolled Gmail users and exposed their email contacts and other personal information without their consent or control. The FTC did not allege that Google failed to employ sufficient security safeguards, although it did require Google to implement a comprehensive privacy program and submit to regular privacy audits as part of the settlement. The other statements are incorrect because:

• A. Violated its own privacy policies: The FTC alleged that Google violated its own privacy policies by using information collected from Gmail users for a purpose that wasincompatible with the purpose for which the information was collected, without obtaining their affirmative consent. Google’s privacy policy stated that "When you sign up for a particular service that requires registration, we ask you to provide personal information. If we use this information in a manner different than the purpose for which it was collected, then we will ask for your consent prior to such use."1
• B. Engaged in deceptive trade practices: The FTC alleged that Google engaged in deceptive trade practices by misrepresenting the extent to which consumers could exercise control over the collection, use, and sharing of their personal information through Google Buzz. For example, Google offered consumers the option to decline or turn off Google Buzz, but the option was ineffective and did not fully remove the consumer from the social network. Google also misled consumers about how their email contacts would be treated on Google Buzz, and failed to disclose that certain information, such as the user’s frequent email contacts, would be made public by default.1
• C. Failed to comply with Safe Harbor principles: The FTC alleged that Google failed to comply with the U.S.-EU Safe Harbor Framework, which provides a method for U.S. companies to transfer personal data from the European Union to the United States in a way that meets EU data protection requirements. Google had self-certified to the Department of Commerce that it adhered to the Safe Harbor Privacy Principles, which include notice, choice, access, and enforcement. The FTC alleged that Google’s conduct violated the notice and choice principles, as well as the requirement to adhere to the Safe Harbor FAQs.1 References: FTC Charges Deceptive Privacy Practices in Google’s Rollout of Its Buzz Social Network, Google, Inc., In the Matter of, Google settles with FTC over Buzz; Privacy policies to be audited for two decades, Google Settles FTC Complaint over Google Buzz Privacy

Privacy by Design is a concept that the FTC endorsed in its 2012 report on protecting consumer privacy1. It seeks to deliver the maximum degree of privacy by ensuring that personal data are automatically protected in any given IT system or business practice2. It asserts that data held by an organization ultimately belongs to the consumer and organizations should ensure that data subjects are properly informed about how their data is collected and used3. Privacy by Design requires companies to build in consumers’ privacy protections at every stage in developing their products, including reasonable security for consumer data, limited collection and retention of such data, and reasonable procedures to promote data accuracy1. References: 1: FTC Report of 2012, p. 22-23; 2: Global Data Review3; 3: Termly4.

A consent decree is a settlement agreement between the FTC and a company that has engaged in unfair or deceptive privacy practices. A consent decreetypically requires the company to stop the unlawful conduct, implement remedial measures, pay a civil penalty, and submit to ongoing monitoring and reporting. A consent decree benefits both parties involved because it spares the expense of going to trial, which can be costly, time-consuming, and uncertain. A consent decree also allows the parties to negotiate the terms of the settlement, rather than having a court impose a judgment. A consent decree does not admit liability or wrongdoing by the company, but it has the force of law and can be enforced by the FTC or the courts if the company violates its terms. References:

• IAPP CIPP/US Body of Knowledge, Section I.A.1.a
• IAPP CIPP/US Textbook, Chapter 1, pp. 10-11
• FTC Consent Decrees