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Question 126

SCENARIO -

Please use the following to answer the next question:

Gentle Hedgehog Inc. is a privately owned website design agency incorporated in Italy. The company has numerous remote workers in different EU countries. Recently, the management of Gentle Hedgehog noticed a decrease in productivity of their sales team, especially among remote workers. As a result, the company plans to implement a robust but privacy-friendly remote surveillance system to prevent absenteeism, reward top performers, and ensure the best quality of customer service when sales people are interacting with customers.

Gentle Hedgehog eventually hires Sauron Eye Inc., a Chinese vendor of employee surveillance software whose European headquarters is in Germany. Sauron Eye s software provides powerful remote-monitoring capabilities, including 24/7 access to computer cameras and microphones, screen captures, emails, website history, and keystrokes. Any device can be remotely monitored from a central server that is securely installed at Gentle Hedgehog headquarters. The monitoring is invisible by default; however, a so-called Transparent Mode, which regularly and conspicuously notifies all users about the monitoring and its precise scope, also exists. Additionally, the monitored employees are required to use a built-in verification technology involving facial recognition each time they log in.

All monitoring data, including the facial recognition data, is securely stored in Microsoft Azure cloud servers operated by Sauron Eye, which are physically located in France.

After fixing the privacy problems, how long may Gentle Hedgehog store the monitoring data, assuming that no valid data erasure request is received?

    Correct Answer: A

    Since the company plans to implement a remote surveillance system, the retention of monitoring data must comply with the principles of necessity and proportionality as laid out by data protection laws like the GDPR. The data should be stored only as long as it serves the company’s legitimate interests, such as ensuring productivity and customer service quality, while balancing the rights and freedoms of the employees. It is not enough to rely solely on a privacy policy or the absence of erasure requests; the retention duration must be justified by the company’s legitimate needs and regulated guidelines.

Discussion
58ad832Option: A

As long as required by the company's legitimate interest to balance off with the data subject's rights