July 2003 -- Volume 7-- Number 6 -- newsletter@truste.org
 

 

 
JUNE TOP 5 PRIVACY STORIES
 

1. TRUSTe Issues Privacy Ultimatum to Batteries.com. Are You Next? (ZDNET - July 6, 2003)

  2.The ROI of Privacy Seals (Computerworld - June 2, 2003)
  3. Gates: I 'm a Spam-Fightin' Man (Information Week - June 25, 2003)
  4. Guess Settles FTC Security Charges (FTC - June 18, 2003)
  5. Web Firms Choose Profit Over Privacy (Washington Post - July 1, 2003)

Knowledge You Need
Rapidly evolving wireless Internet technologies offer consumers and businesses exciting new products and services -- and bring up a host of new privacy issues.
»Learn More

Public Policy Update
The U.S. Senate considers strengthening anti-spam legislation. »
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From the Executive Director
Excerpts from TRUSTe executive director Fran Maier's Senate testimony.
»Learn More

TRUSTe News
TRUSTe's new partnership with the International Association of Privacy Professionals offers licensees new opportunities for education and networking. »
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Privacy Resources
Interested in keeping up to date on wireless issues? Consult the Cellular Telecommunications and Internet Association's Web site.
»Learn More

Stay Current!
Upcoming privacy and security events around the world. »
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TRUSTe Tech Tip
How to avoid "unable to unsubscribe" Watchdog complaints.
»Learn More

Welcome New Licensees
The newest Web sites to display the TRUSTe seal. »
Learn More

 


Wireless Internet Technology Requires New Privacy Standards
by Stacey Estrella

According to Jupiter Research, by the year 2005 more than 96 million wireless subscribers -- 65 percent of today's subscriber base -- will have access to the wireless Internet. This rapid convergence of wireless technology with data services and the Internet has given rise to a host of unprecedented issues concerning consumer privacy.

TRUSTe recognizes your need to evolve with your customer base, capitalizing on valuable wireless technologies to provide strategic features and services. As such, we are breaking new ground in the areas of wireless privacy.

Consumers report three primary concerns regarding advanced wireless technologies: the collection and use of location data, unsolicited advertising messages sent to the device, and the profiling of information for marketing purposes. These concerns are further magnified by recent federal mandates, such as e911, which allow for the location of a wireless device to be identified for emergency purposes any time the device is turned on.

The availability of location data, combined with the FCC's Wireless Local Number Portability mandate, contributes to the growing consumer perception that wireless devices are infinitely more personal than computers, making consumers feel uncomfortable about potential commercial abuses of wireless technology. Consumers will be much more vigilant about screening commercial entities before engaging in transactions, and any perceived abuses of their trust will be cause to sever the relationship.

How do I know if wireless privacy applies to my business?

If you are a wireless carrier or content provider engaged (or planning to engage) in wireless data or Internet services, your privacy practices will need to be enhanced to address wireless privacy issues. Here are just a few questions to help you determine whether you should consider adjusting your privacy practices:

  • Do you collect, share, or receive location data?

  • Do you collect, share, or receive mobile phone numbers?

  • Do you enable your consumers to access Internet account data from a mobile device? (Examples include one-click commerce settings or email.)

  • Do you deliver advertising text or other media messages to PDAs or mobile handsets on behalf of your company or others?

  • Do you collect or share information on individual subscribers or individual devices when they access your Web site from a PDA or mobile handset?

How is TRUSTe responding to wireless privacy concerns?

TRUSTe has formed an advisory committee representing a cross-section of industry participants. It currently includes representatives of AT&T, Verizon, Microsoft, Hewlett Packard, the Mobile Marketing Association, the Wireless Location Industry Association, the Center for Democracy and Technology, and the Privacy Rights Clearinghouse.

The committee is charged with developing a comprehensive set of privacy standards, including principles, implementation guidelines, and best practices. These standards aim to help wireless carriers and content providers create an environment that engenders consumer trust and facilitates higher trial and adoption rates of wireless data and Internet services.

Among the more complex and provocative issues we are evaluating:

  • Methods for delivering "notice and choice" across smaller devices
  • Opt-in requirements at both the device and application level
  • Data storage limits
  • Form and use of wireless privacy statements, including short notices
  • Form factor for indicating availability of and adherence to wireless privacy practices

TRUSTe will share the standards that the committee is developing with you as they emerge. In the meantime, if you would like to participate on the advisory committee, please contact Frank Babbitt, vice president of sales and business development, at fbabbitt@truste.org.

Stacey Estrella is a consultant on wireless privacy policy and business practices with TRUSTe.

 
 


Congressional Hearing Emphasizes Multi-tiered Anti-Spam Attack
by Stephanie Lim

Just two years ago, unsolicited commercial email, or "spam," accounted for only 8 percent of email traffic. This summer, spam is projected to make up more than 50 percent of all email. The problems that spam poses to both consumers and businesses have led legislators to consider new bills to address the spam issue. Earlier this summer, the U.S. Senate's Committee on Commerce, Science, and Transportation tackled spam in its hearings.

On June 19, the Can-Spam Bill passed in committee, which would allow for criminal penalties and fines of up to $1.5 million for spammers.

Spam is no longer a simple nuisance to consumers. Unsolicited email transmits viruses, eats up bandwidth, exposes minors to graphic images of pornography, and costs businesses pricey storage space and resources. AOL alone estimates that it blocks 2.4 billion messages a day.

"If consumers lose confidence in Web-based services and turn away, tremendous harm will be done to the economic potential of information technology," FTC commissioner Orson Swindle said. "Frankly, to date I am not convinced that industry has made the commitment or really wants to empower consumers by giving them easy-to-use tools for personal control."

In her testimony to the committee, TRUSTe executive director Fran Maier echoed consumer concerns, citing that 58 percent of TRUSTe's Watchdog complaints deal with spam-related issues. "Consumers feel that their private/personal email accounts should be just that -- private and personal."

Combating spam is no easy task, and members of the committee acknowledged that the efficacy of federal legislation is limited. "For Congress's part, we should make no mistake; unless we can effectively enforce the laws we write, those laws will have little meaning or deterrent effect on any would-be purveyor of spam," said Sen. John McCain (R-AZ).

Maier emphasized the need for third-party oversight, announcing TRUSTe's intention of becoming an Independent Email Trust Authority (IETA). "TRUSTe has come to realize that email is a frontier very similar to privacy on the Internet five years ago," said Maier. An IETA would be required to develop baseline standards of conduct in email practices, bridging the areas of technology, legislation, consumer education, and self-regulation.

 
 


Maier Defines Spam Issues for U.S. Senate

The following excerpt was taken from TRUSTe executive director Fran Maier's June 19, 2003, testimony before the Senate Committee on Commerce, Science, and Transportation regarding the establishment of an Independent Email Trust Authority (IETA):

A key function of an IETA is to coordinate and maintain a set of baseline standards that are accepted by all of the major stakeholders, including consumers, email and Internet service providers (ISPs, corporate networks, ESPs, etc.), and senders. True progress in precluding the negative ramifications of spam cannot be made without close cooperation across these parties. . . .

A general industry consensus is beginning to emerge on some of the more basic baseline standards for legitimate mail, but many key points continue to be debated. Most parties have generally accepted the following concepts, in principle:

1. Bona fide "source" information (no false headers): Source-identifying information, such as originating domain name and email address, destination and routing information, should not be falsified.

2. No harvesting: the automated collection of email addresses for the purpose of sending bulk email through techniques commonly referred to as "harvesting" or "dictionary attacks," or the knowing use of emails gathered through such processes, is not acceptable.

3. Every commercial email should include an unsubscribe or opt-out mechanism that functions as it is described, in a timely manner. A valid unsubscribe mechanism is critical to improving consumer trust in email.

4. Every commercial email should include valid contact information for the originator of the message, including, at a minimum, a valid return email address.

UPDATE: TRUSTe continues to watch legislative developments closely. Of particular interest is the potential for legislation to form a safe harbor for companies whose email meets or exceeds the requirements of the legislation. Under the safe harbor (distinct from the European Union's Safe Harbor program), self-regulatory organizations such as TRUSTe, would work with industry, bulk mailers, and email service providers to define baseline standards for email and to qualify and monitor email senders -- in a similar way to the function of the proposed IETA. A key component of the legislation, and a key responsibility of the United States' Safe Harbor program, is to develop and bring trust to the unsubscribe and opt-out options.

 

 
 


TRUSTe and IAPP Partner to Extend Membership and Seal Benefits

This week, TRUSTe announced to the public that it has partnered with the International Association of Privacy Professionals (IAPP) to provide IAPP membership benefits to TRUSTe seal holders and educational programming to members of both organizations. The IAPP is the world's leading association of privacy and security professionals, with more than 1,000 individual and corporate members from a variety of industries.

"This partnership will bring managers on the front line of privacy a more comprehensive view of the industry and its practices. TRUSTe has worked with thousands of organizations to certify their Web site privacy statements, and has guided the Internet community toward higher standards in Web site privacy, enhancing respect for consumers' personally identifiable information," said Fran Maier, executive director of TRUSTe. "The IAPP shares our focus and, as such, is a valuable partner for TRUSTe, our seal holders, and all Internet users."

TRUSTe will work with the IAPP to offer bundled membership and privacy seal programs. TRUSTe will also be coordinating programming at the upcoming IAPP Privacy Academy, which will take place Oct. 29-31, 2003, in Chicago.

"The mission for the IAPP focuses upon the enhancement of the privacy profession through the ongoing education of our members," said Trevor Hughes, executive director of the IAPP. "This partnership will extend important IAPP membership benefits to TRUSTe seal holders and will leverage the strong experience of TRUSTe as a leading self-regulatory privacy organization."

TRUSTe licensees will receive information on the benefits of this new partnership with IAPP shortly. For more information, contact Carolyn Hodge, senior marketing manager, at (415) 618-3415 or chodge@truste.org.



 
 


Cellular Telecommunications and Internet Association


The Cellular Telecommunications & Internet Association (CTIA) represents service providers and manufacturers from all sectors of wireless communication. Check the Web site for updates on CTIA's advocacy efforts on the national level, its Wireless Internet Caucus, and breaking news. Visitors to the site can also search CTIA's online Market Research Center for fee-based access to white papers and industry reports on wireless issues.

 


Here are a few upcoming privacy-related conferences and workshops around the world.

IAPP Privacy Academy & TRUSTe PreCon Working Sessions -- Save the Date!

Dates: October 29-31, 2003

Location: Chicago, Illinois

Overview: The IAPP Privacy Academy will offer the background knowledge you need on privacy law, corporate privacy infrastructure, enforcement, the role of the company privacy officer, and management of privacy and security. Stay tuned for TRUSTe preconference sessions on "How not to be a spammer!" and a practical working session on tools for Web site privacy. Visit the IAPP Web site to sign up to receive a copy of the program once it is published.


Fifth Annual Privacy Conference -- Special Offer for TRUSTe Licensees!

Dates: September 30-October 2, 2003

Location: Blackwell Hotel, Columbus, Ohio

Overview: TRUSTe is pleased to be a sponsor of the Fifth Annual Privacy Conference, which is organized annually by the Technology Policy Group at Ohio State University. This year's theme, "Information, Security, and Ethics in the Digital Age," will be tackled by experts from all over the United States, and sessions will be organized into financial, business, healthcare, and government tracks. Keynote speakers include Orson Swindle, FTC commissioner, and Nuala Kelly, chief privacy officer at the U.S. Office of Homeland Security.

For a complete agenda, travel information, and online registration, visit the PrivacyCon2003 Web site. TRUSTe licensees are eligible for a significant discount on registration. For the TRUSTe password, please call Michelle Lucas at (415) 618-3402 or George Mamashiani at (415) 618-3403.

SELF-NOMINATE for PRIVACY AWARD!: TRUSTe licensees are encouraged to apply for the HP Privacy Innovation Awards which will be awarded for the first time at PrivacyCon2003. For more information see: www.privacyinnovation.org The deadline for application is September 8, 2003.

First International Congress on e-Commerce Trustmarks

Dates: September 17-19, 2003

Location: Luxembourg-Kirschberg, Luxembourg

Overview: To spark an international exchange of ideas on securing consumer confidence in e-commerce, the Ministry of the Economics of the Grand Duchy of Luxembourg is organizing the First International Congress on Trustmarks in Electronic Commerce. More than 300 representatives from the business, government, and nonprofit sectors are expected to attend this congress. Presenters hailing from all over Europe, Asia, and North America will discuss e-commerce trends, consumer expectations, and the role of national and international public authorities and nongovernment organizations such as TRUSTe.

The registration fee for the three-day conference is 570 euros (US$646). For more information on the congress or to register as a participant, visit www.e-trustmarks.lu.


25th International Conference on Data Protection and Privacy

Dates: September 10-12, 2003

Location: Sydney, Australia

Overview: Business leaders and privacy professionals from around the world will be gathering in Sydney this September to meet with key decision-makers in the Asia-Pacific region and to hear about international privacy regulation, implementation, and the privacy needs of consumers. With the theme of "Practical Privacy for People, Government, and Business," sessions will focus on technologies, marketing and relationship building within a privacy framework, compliance, and consumer advocacy. To learn more about the conference or to register online, visit the conference Web site.

 
 


Tip: To avoid receiving "unable to unsubscribe" complaints through TRUSTe, licensees should implement an automated system to unsubscribe consumers and send a confirmation email informing them of their updated choice.

"Unable to unsubscribe" is the most common Watchdog complaint that TRUSTe receives. Many complainants write that they have unsubscribed before but are still receiving unwanted emails from a company. By implementing an automated system to handle unsubscribe requests, licensees can ensure that each request is processed and implemented within a reasonable timeframe. Sending users a confirmation email allows them to verify that their request has been processed.

The confirmation email should state the email address being unsubscribed, the date the unsubscribe request was received, and the date that the request will take effect. On the "unsubscribe page," include a note informing site users that if they do not receive a confirmation email, they should try to unsubscribe again. Then display an email address for a designated staff member who can help them should their attempts to retry fail as well.

Carlos Gil Jr., compliance analyst

 
 


TRUSTe would like to congratulate the following new licensees on successfully completing our certification process:

Baysix USA, Classmates Online, Diamond Review, Enfocus Software, 4Structures.com, Inksell, Jumbohut, Mailblocks, 1-800-Dentist, Orbitz, PlayStream, Titanium Online

 
 


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TRUSTe is an independent, nonprofit organization that administers the Internet's first and largest privacy seal program.

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