OneTrust Certified Privacy Professional Practice Exam

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What condition is necessary for the application of GDPR?

The entity is located in the USA
Data processing involves EU residents
The entity has an office in Europe
Data is stored only in non-EU countries

The correct answer is: Data processing involves EU residents

The necessity for the application of GDPR (General Data Protection Regulation) is fundamentally linked to data processing activities that involve EU residents. GDPR is designed to protect the privacy of individuals within the European Union; therefore, its provisions apply whenever personal data pertaining to EU residents is processed, regardless of where the processing entity is located. This means that even companies based outside of the EU (for instance, in the USA) are required to comply with GDPR if they process personal data of individuals who are situated within the EU. This is a significant aspect of the regulation, as it aims to provide robust data protection for individuals regardless of the geographical boundaries of the data controllers or processors. The emphasis is on the residency of the individuals rather than the location of the entity or the storage of the data. In contrast, having an office in Europe or storing data only in non-EU countries doesn't automatically trigger GDPR compliance; it’s the interaction with EU residents' data that is the critical factor. Thus, the correct answer reflects the core principle of GDPR applicability based on the residency of data subjects involved in the processing activities.