SCENARIO
Please use the following to answer the next question:
Brady is a computer programmer based in New Zealand who has been running his own business for two years. Brady’s business provides a low-cost suite of services to customers throughout the European Economic Area (EEA). The services are targeted towards new and aspiring small business owners. Brady’s company, called Brady Box, provides web page design services, a Social Networking Service (SNS) and consulting services that help people manage their own online stores.
Unfortunately, Brady has been receiving some complaints. A customer named Anna recently uploaded her plans for a new product onto Brady Box’s chat area, which is open to public viewing. Although she realized her mistake two weeks later and removed the document, Anna is holding Brady Box responsible for not noticing the error through regular monitoring of the website. Brady believes he should not be held liable.
Another customer, Felipe, was alarmed to discover that his personal information was transferred to a third- party contractor called Hermes Designs and worries that sensitive information regarding his business plans may be misused. Brady does not believe he violated European privacy rules. He provides a privacy notice to all of his customers explicitly stating that personal data may be transferred to specific third parties in fulfillment of a requested service. Felipe says he read the privacy notice but that it was long and complicated
Brady continues to insist that Felipe has no need to be concerned, as he can personally vouch for the integrity of Hermes Designs. In fact, Hermes Designs has taken the initiative to create sample customized banner advertisements for customers like Felipe. Brady is happy to provide a link to the example banner ads, now posted on the Hermes Designs webpage. Hermes Designs plans on following up with direct marketing to these customers.
Brady was surprised when another customer, Serge, expressed his dismay that a quotation by him is being used within a graphic collage on Brady Box’s home webpage. The quotation is attributed to Serge by first and last name. Brady, however, was not worried about any sort of litigation. He wrote back to Serge to let him know that he found the quotation within Brady Box’s Social Networking Service (SNS), as Serge himself had posted the quotation. In his response, Brady did offer to remove the quotation as a courtesy.
Despite some customer complaints, Brady’s business is flourishing. He even supplements his income through online behavioral advertising (OBA) via a third-party ad network with whom he has set clearly defined roles. Brady is pleased that, although some customers are not explicitly aware of the OBA, the advertisements contain useful products and services.
Under the General Data Protection Regulation (GDPR), what is the most likely reason Serge may have grounds to object to the use of his quotation?
MagicClean is a web-based service located in the United States that matches home cleaning services to customers. It otters its services exclusively in the United States It uses a processor located in France to optimize its data. Is MagicClean subject to the GDPR?
According to the European Data Protection Board, if a controller that is not established in the EU but still subject to the GDPR becomes aware of a personal data breach, which supervisory authority or authorities must be notified?
In which of the following cases, cited as an example by a WP29 guidance, would conducting a single data protection impact assessment to address multiple processing operations be allowed?
The transparency principle is most directly related to which of the following rights?
SCENARIO
Please use the following to answer the next question:
Jane starts her new role as a Data Protection Officer (DPO) at a Malta-based
company that allows anyone to buy and sell cryptocurrencies via its online platform.
The company stores and processes the personal data of its customers in a
dedicated data center located in Malta (EU).
People wishing to trade cryptocurrencies are required to open an online account on
the platform. They then must successfully pass a Know Your Customer (KYC) due
diligence procedure aimed at preventing money laundering and ensuring
compliance with applicable financial regulations.
The non-European customers are also required to waive all their GDPR rights by
reading a disclaimer written in bold and ticking a checkbox on a separate page in
order to get their account approved on the platform.
All customers must likewise accept the terms of service of the platform. The terms
of service also include a privacy policy section, saying, among other things, that if a
customer fails the KYC process, its KYC data will be automatically shared with the
national anti-money laundering agency.
The KYC procedure requires customers to answer many questions, including
whether they have any criminal convictions, whether they use recreational drugs or
have problems with alcohol, and whether they have a terminal illness. While
providing this data, customers see a conspicuous message saying that this data is
meant only to prevent fraud and account takeover, and will be never shared with
private third parties.
The company regularly conducts external security testing of its online systems by
independent cybersecurity companies from the EU. At the final stage of testing, the
company provides cybersecurity assessors with access to its central database to
review security permissions, roles and policies. Personal data in the database is
encrypted; however, cybersecurity assessors usually have access to the decryption
keys obtained while running initial security testing. The assessors must strictly
follow the guidelines imposed by the company during the entire testing and auditing
process.
All customer data, including trading activities and all internal communications with
technical support, are permanently stored in a secured AWS S3 Glacier cloud data
storage, located in Ireland, for backup and compliance purposes. The data is
securely transferred to the cloud and then is properly encrypted while at rest by
using AWS-native encryption mechanisms. These mechanisms give AWS the
necessary technical means to encrypt and decrypt the data when such is required
by the company. There is no data processing agreement between AWS and the
company.
Should Jane modify the required GDPR rights waiver for non-European residents?
In addition to the European Commission, who can adopt standard contractual clauses, assuming that all required conditions are met?
What is an important difference between the European Court of Human Rights (ECHR) and the Court of Justice of the European Union (CJEU) in relation to their roles and functions?