CIPP-US Question #1: Real Exam Question with Answer & Explanation

Question

Options

• AWhen a job applicant's credit report is provided to an employer
• BWhen a customer's financial information is requested by the government
• CWhen a patient's health record is made available to a pharmaceutical company
• DWhen a customer's street address is shared with a shipping company

Explanation

According to the Family Educational Rights and Privacy Act (FERPA), a policy of "no consumer choice" or "no option" means that an educational agency or institution may disclose personally identifiable information (PII) from education records without the prior written consent of the parent or eligible student, subject to certain conditions and exceptions. One of the exceptions is when the disclosure is to comply with a judicial order or lawfully issued subpoena, or to respond to an ex parte order from the Attorney General of the United States or his designee in connection with the investigation or prosecution of terrorism crimes. In such cases, the educational agency or institution must make a reasonable effort to notify the parent or eligible student of the order or subpoena in advance of compliance, unless the order or subpoena specifies not to do so. Therefore, when a customer's financial information, which may be part of the education records, is requested by the government under a valid legal authority, the customer does not have the option to prevent the disclosure and the educational agency or institution does not need to obtain the customer's consent.

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