512-50 practice question 29 of 35

An organization licenses and uses personal information for business operations, and a server containing that information has been compromised. What kind of law would require notifying the owner or licensee of this incident?

Full set: 404 questions
Answer options
A: Data breach disclosure Correct answer
B: Consumer right disclosure
C: Security incident disclosure
D: Special circumstance disclosure
Correct Answer:
A. Data breach disclosure
Explanation

Data breach disclosure laws are specific statutes that mandate organizations to notify individuals, and often regulatory bodies, when their personally identifiable information (PII) has been compromised. The scenario describes the compromise of a server containing licensed personal information, which directly triggers the notification requirements outlined in these laws. The primary purpose is to allow affected individuals to take protective measures against potential identity theft or fraud. These laws vary by jurisdiction but share the core principle of mandatory notification following a data breach.

Why Incorrect

B. Consumer right disclosure is a broader term that includes privacy policies and data usage rights, not specifically breach notification requirements.
C. A security incident does not always result in a data breach; this term is less specific than "data breach disclosure."
D. Special circumstance disclosure is not a standard legal term for this type of mandatory notification and is too vague.

References

1. National Institute of Standards and Technology (NIST). (2010). Special Publication 800-122: Guide to Protecting the Confidentiality of Personally Identifiable Information (PII). Section 4.3.2, "Breach Notification," p. 23.

2. Mulligan, D. K., & King, J. (2012). Bridging the Gap Between Privacy and Design. University of California, Berkeley, School of Information. Section on "Privacy Harms and Data Breach Notification Laws," pp. 10-12.

3. California Office of the Attorney General. (2023). California Consumer Privacy Act (CCPA). Civil Code § 1798.150. This section outlines the private right of action following a data breach.

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