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SCENARIO 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 pre- registrations, 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 Canad a. The reports include customer name, birthdate, ethnicity, racial background, names of relatives, gender, and occasionally health information. If Who-R-U decides to track locations using its app, what must it do to comply with the GDPR?
Correct Answer: A
According to the GDPR, location data is a type of personal data that can reveal information about an individual's habits, preferences, or movements1. Location data can also be considered as a special category of personal data if it reveals information about an individual's health, ethnic origin, or religious beliefs2. Therefore, location data is subject to the GDPR's rules on the lawful processing of personal data, which require a valid legal basis, such as consent, contract, legal obligation, vital interest, public interest, or legitimate interest2. In this scenario, Who-R-U decides to track locations using its app, which means that it collects and processes location data from its app users. This data can be used to identify the app users, as well as to infer information about their interests, preferences, or behavior. Therefore, Who-R-U needs to comply with the GDPR, even if it only offers its services to Canadians, because it monitors the behavior of individuals in the EU2. One of the possible legal bases for processing location data is consent, which means that the app users must give their informed, specific, and freely given agreement to the collection and use of their location data2. Consent must be obtained before the processing starts, and it must be easy to withdraw at any time2. Consent must also be granular, meaning that the app users must be able to choose which purposes and types of location data they agree to share1. Therefore, if Who-R-U decides to track locations using its app, it must get consent from the app users, and provide them with clear and transparent information about how, why, and for how long their location data will be processed, who will have access to it, and what rights they have under the GDPR12. Who-R-U must also ensure that the consent is voluntary, and that the app users can opt out of location tracking without affecting the functionality or quality of the app12. Reference: 1 Policy Brief: Location Data Under Existing Privacy Laws | FPF. Available at: 5 (Accessed: 11 December 2023)2 What is the General Data Protection Regulation (GDPR)? | Cloudflare. Available at: 6 (Accessed: 11 December 2023).