IAPP CIPP-US Exam Dumps

Which entities must comply with the Telemarketing Sales Rule?

In what way is the Controlling the Assault of Non-Solicited Pornography and Marketing
(CAN-SPAM) Act intended to help consumers?

Please use the following to answer the next QUESTION:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps
individuals realize their physical fitness goals through classes, individual instruction, and
access to an extensive indoor gym. She has owned the company for ten years and has
always been concerned about protecting customer’s privacy while maintaining the highest
level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company
has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her
develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the
draft and was concerned about the many changes the policy would bring throughout the
company. For example, the draft policy stipulates that a customer’s personal information
can only be held for one year after paying for a service such as a session with personal
trainer. It also promises that customer information will not be shared with third parties
without the written consent of the customer. The wording of these rules worry Cheryl since
stored personal information often helps her company to serve her customers, even if there
are long pauses between their visits. In addition, there are some third parties that provide
crucial services, such as aerobics instructors who teach classes on a contract basis.
Having access to customer files and understanding the fitness levels of their students helps
instructors to organize their classes.
Janice understood Cheryl’s concerns and was already formulating some ideas for revision.
She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that
it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It
seemed that classifying data and treating each type differently would cause undue
difficulties in the company’s day-to-day operations. Cheryl wants one simple data storage
and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes
within her company were going to be necessary. She told Janice that she would be more
comfortable with implementing the new policy gradually over a period of several months,
one department at a time. She was also interested in a layered approach by creating
documents listing applicable parts of the new policy for each department.
What is the best reason for Cheryl to follow Janice’s suggestion about classifying customer
data?