Humber/Ontario Real Estate Course 1 Exam Practice

Which statement is accurate regarding PIPEDA?

1. Disclosure of intended data use is mandatory

2. Ten privacy principles are included in REBBA

3. Business addresses are considered personal information

4. Privacy officer ensures secure storage of anonymized data

5. Consumer consent is not needed for data collection

6. Sales data must always remain confidential

The correct answer is: Disclosure of intended data use is mandatory

The correct choice indicates that disclosure of intended data use is indeed mandatory under PIPEDA, the Personal Information Protection and Electronic Documents Act. This legislation requires organizations to be transparent about the information they collect and how it will be used, emphasizing the importance of informing individuals about the purpose behind data collection. This aligns with the principle of accountability and openness, which are fundamental to PIPEDA. In the context of the other choices, while they may touch upon privacy and information principles, they do not correctly reflect the requirements set forth in PIPEDA. For instance, REBBA contains various regulations regarding real estate but does not encompass the ten privacy principles outlined in PIPEDA. Additionally, business addresses typically do not qualify as personal information unless they can be directly linked to an individual. The role of a privacy officer is indeed important, but their responsibility encompasses much more than simply ensuring the secure storage of anonymized data. Consumer consent is generally required for data collection, particularly under PIPEDA, which establishes strong guidelines for data protection and privacy. Finally, while sales data often must be handled with confidentiality, there could be circumstances under which data can be disclosed, making that statement overly absolute.