CIPM practice question 5 of 30
SCENARIO Please use the following to answer the next QUESTIO N: Liam is the newly appointed information technology (IT) compliance manager at Mesa, a…
Full set: 242 questionsDomain Privacy Program Framework
The General Data Protection Regulation (GDPR) has extraterritorial reach under Article 3(2). This article states that the regulation applies to the processing of personal data of data subjects in the European Union (EU) by a controller not established in the EU, where the processing activities are related to the offering of goods or services to those data subjects. Mesa's "global E-commerce presence" strongly implies that it offers its products to customers in the EU, thereby triggering the GDPR's territorial scope. The company's location is irrelevant if it targets individuals within the EU.
A. Mesa being US-based is the reason the extraterritorial scope of the GDPR is relevant, not the reason for compliance itself.
B. While direct marketing is regulated by the GDPR, this activity alone does not establish the jurisdictional basis for the regulation to apply to a non-EU company.
C. The use of automated systems is a method of processing data; it pertains to the GDPR's material scope, not its territorial scope for a non-EU entity.
1. Regulation (EU) 2016/679 (General Data Protection Regulation)
Article 3
"Territorial scope
" paragraph 2(a): "This Regulation applies to the processing of personal data of data subjects who are in the Union by a controller or processor not established in the Union
where the processing activities are related to: (a) the offering of goods or services
irrespective of whether a payment of the data subject is required
to such data subjects in the Union".
2. European Data Protection Board (EDPB)
Guidelines 3/2018 on the territorial scope of the GDPR (Article 3)
Version 2.1 (12 November 2019)
Section 2.1
Paragraph 20: "In order to determine whether goods or services are offered to a data subject in the Union
the EDPB will consider a number of factors... For example
the use of a language or a currency generally used in one or more Member States with the possibility of ordering goods and services in that other language
or the mentioning of customers or users who are in the Union." A global e-commerce site would likely meet these criteria.
3. Kuner
C.
Bygrave
L. A.
& Docksey
C. (2020). The EU General Data Protection Regulation (GDPR): A Commentary. Oxford University Press. In the commentary on Article 3
the authors explain that the "targeting" approach means that the mere accessibility of a website in the EU is not sufficient
but factors indicating an intention to offer goods or services to people in the EU will trigger the application of the GDPR. A global e-commerce presence implies such an intention.
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