1. The Internet industry’s privacy seal program Silicon Valley Web Guild

2. The Internet industry’s privacy seal program Dave Steer, Director of Communications

3. Overview The Perfect Privacy Storm The TRUSTe Privacy Seal Program Methods of Addressing Privacy Issue Q & A

4. The Perfect Privacy Storm Confusing and conflicting state, national, and international laws –Current law: COPPA, FTC Act, EU Data Directive –Congress looking to pass new law next session The Election Season –Privacy is political –Presidential candidate calls for Opt-In –State attorneys general involved in issue

5. The Perfect Privacy Storm Current economic environment –Bankruptcies are causing inconsistencies with current law –Toysmart Media –Privacy advocates scouring Web for Data Valdez –Daily stories of corporate privacy violation

6. The Perfect Privacy Storm TRUSTe launched to raise trust and confidence in the Web –The promise of eCommerce threatened by lack of trust in new medium. –Privacy was number one fear impacting trust The Birth of Self Governance Framework –Coalition of enlightened companies, social advocates, government and consumers. –Created a “seal” as a guidepost to trusted sites that agree with our privacy principles

7. TRUSTe Privacy Seal Program

8. The Role of a Seal Program Ensure use of fair information practices Monitor site for program compliance Provide consumer recourse mechanism Boost consumer confidence and trust Educate consumers and businesses “To engage Web site and Web surfer in a conversation about privacy”

9. TRUSTe Seal Program Based on core tenets of Fair Information Practices –Notice: Disclosure of information practices –Choice: Opt-in or Opt-out of information practices –Access: Reasonable access to profile information –Security: Reasonable security for data collected

10. TRUSTe Seal Program Monitoring for Program Compliance –Ongoing review of Web site practices –Seeding process to ensure compliance TRUSTe Watchdog –An easy-to-use alternative dispute resolution mechanism –Objective: to resolve complaints between Web sites and Web users –Toysmart.com action is a result of TRUSTe vigilance and working Watchdog process

11. The TRUSTe seal links from your home page to a privacy statement.

12. The privacy statement discloses how your site will collect and use consumer information.

13. This site is a licensee of the TRUSTe program. As such, we have agreed to have our privacy practices monitored and reviewed by TRUSTe. Privacy Statement Your customers also have choices about who your site gives information to.

14. Users can report privacy violations through TRUSTe’s Watchdog page.

15. TRUSTe Program Growth Source: TRUSTe internal figures

16. TRUSTe Program Status Depth and breadth of licensee base –1/2 of top 100; 15 of top 20 –90% of U.S. Internet traffic on TRUSTe approved sites per month –23 countries represented –Nearly every vertical industry segment

17. TRUSTe Program Status TRUSTe seal rated most prominent symbol on the Internet (Nielson//NetRatings) –More than 4.7 billion impressions served in June 2000 TRUSTe seal ranked most trustworthy symbol online (Cheskin Research) –69 percent recognize the TRUSTe seal –55 percent indicate that the presence of TRUSTe seal increased trust in a site

18. Trust: Looking Ahead Consumer Education –Privacy Partnership 1998, 2000, and beyond –Parents and Teachers Guide to Online Privacy Internationalization of Privacy Oversight –A global medium requires a global privacy solution –European safe harbor opens door to swift internationalization

19. Trust: Looking Ahead Software Privacy Seal Program –The blurring of online and offline requires a more expanded solution –Expansion of the TRUSTe coalition A Broader Trust Solution –More integrated solution to address all elements of trust online

20. Addressing Privacy Problems

21. Trust and Privacy Tips Make fair information practices a central principle of your operation –Create and communicate privacy policies –Hire a Chief Privacy Officer to ensure entire company is in lock-step –Make sure all employees know the policy –Join a third party oversight program –Make privacy a check-point in your product releases

22. Trust and Privacy Tips Architecture is policy –How you build your system will dictate user privacy –Bring in advisory counsel Communicate your privacy commitment –Use responsible privacy practice as a competitive advantage –Integrate privacy into your marketing efforts –Accept and admit responsibility for mistakes and solve them quickly

23. Conclusion Privacy concerns have brewed a Perfect Storm for Internet businesses Seal programs can help a Web site earn the trust of its users, and are effective at remaining ahead of curve. Smart companies are embracing integrated methods of addressing privacy and building trust online.

24. The Internet industry’s privacy seal program Silicon Valley Web Guild