Please use the following to answer the next question:
Joe is the new privacy manager for Who-R-U, a Canadian business that provides DNA analysis. The company
is headquartered in Montreal, and all of its employees are located there. The company offers its services to
Canadians only: Its website is in English and French, it accepts only Canadian currency, and it blocks internet
traffic from outside of Canada (although this solution doesn’t prevent all non-Canadian traffic). It also declines
to process orders that request the DNA report to be sent outside of Canada, and returns orders that show a
non-Canadian return address.
Bob, the President of Who-R-U, thinks there is a lot of interest for the product in the EU, and the company is
exploring a number of plans to expand its customer base.
The first plan, collegially called We-Track-U, will use an app to collect information about its current Canadian
customer base. The expansion will allow its Canadian customers to use the app while traveling abroad. He
suggests that the company use this app to gather location information. If the plan shows promise, Bob
proposes to use push notifications and text messages to encourage existing customers to pre-register for an EU
version of the service. Bob calls this work plan, We-Text-U. Once the company has gathered enough preregistrations, it will develop EU-specific content and services.
Another plan is called Customer for Life. The idea is to offer additional services through the company’s app,
like storage and sharing of DNA information with other applications and medical providers. The company’s
contract says that it can keep customer DNA indefinitely, and use it to offer new services and market them to
customers. It also says that customers agree not to withdraw direct marketing consent. Paul, the marketing
director, suggests that the company should fully exploit these provisions, and that it can work around
customers’ attempts to withdraw consent because the contract invalidates them.
The final plan is to develop a brand presence in the EU. The company has already begun this process. It is in
the process of purchasing the naming rights for a building in Germany, which would come with a few offices
that Who-R-U executives can use while traveling internationally. The office doesn’t include any technology or
infrastructure; rather, it’s simply a room with a desk and some chairs.
On a recent trip concerning the naming-rights deal, Bob’s laptop is stolen. The laptop held unencrypted DNA
reports on 5,000 Who-R-U customers, all of whom are residents of Canada. The reports include customer
name, birthdate, ethnicity, racial background, names of relatives, gender, and occasionally health information.
If Who-R-U adopts the We-Track-U pilot plan, why is it likely to be subject to the territorial scope of the
GDPR?
EXAM CODE : CIPP-E
