March 2003 -- Volume 7-- Number 2-- newsletter@truste.org
 

 
 
 
   
   

Message from the Executive Director:
Announcing our first annual Year in Review. »Learn More

A Banner Year:
We are very proud to report that in this difficult environment, TRUSTe is thriving. »Learn More

Q&A with Chair Christine Varney:
Former Federal Trade Commissioner Christine Varney was elected chairperson of TRUSTe’s board of directors in February 2003. Varney recently answered a few questions about her perspective on TRUSTe and privacy in general. »Learn More

Enhance Your Investment
Interested in highlighting your privacy commitment? Already a member of the TRUSTe seal program?»Learn More

 
Dear Friends,

You are receiving this first annual TRUSTe Year in Review (PDF, Requires Acrobat Reader) because you are a licensee member, a sponsor, active in the privacy arena, or in some other way interested in how the organization is faring in overseeing the privacy practices of our member licensees, raising the privacy standards bar, engaging with new privacy issues, and succeeding as a non-profit organization. For those of you who are new to TRUSTe, this will also serve as an introduction to the products and services TRUSTe offers and our key initiatives.

At TRUSTe we believe we owe you this overview of our operations. This report speaks directly to two of TRUSTe’s resolutions for the new year, as discussed in the January 2003 TRUSTe Newsletter. First, we want to continue to actively engage all our stakeholders including our licensee members, privacy and consumer advocates, policy makers, regulators and others to improve our approaches, find new solutions, and continue to show respect for personally identifiable information and privacy. To do this requires we meet our second goal - TRUSTe must be more transparent about its processes and operations, decision-making, licensees and supporters, and key initiatives.

TRUSTe’s mission is to enable individuals and organizations to establish trusting relationships based on respect for personally identifiable information in the evolving networked world. You’ll see in this annual report our efforts to support this mission.

I’d like to thank our licensee members, TRUSTe’s Board of Directors, and our many friends who show concern for privacy issues. Your support has been critical to TRUSTe’s success in 2002 and your help will be critical in 2003.

Fran Maier
Executive Director and President
TRUSTe


 
 


The last couple of years have been difficult for many organizations. We have all felt the effect of 9/11, the economic slowdown, and the dot.com bust. We are very proud to report that in this difficult environment, TRUSTe is thriving. We believe that Privacy and Security concerns are higher, many companies remain committed to protecting their customers, and regulators and consumers alike have increased their call for action.

Highlights for 2002: TRUSTe is Thriving

  • A growth in TRUSTe’s license base to larger organizations, touching more consumers with well recognized brands

  • Launch of TRUSTe License Agreement Version 8.0 with new and higher standards for consumer privacy protection

  • Beta launch of the Trusted Sender email seal program to address some of the ill effects of SPAM by elevating email from legitimate marketers subscribing to email best practices

  • Launch of Privacy International Services including dispute resolution in foreign languages for multi-national organizations

  • TRUSTe’s first conference bringing marketers and lawyers together in February 2002

  • Launch of the Wireless Privacy Initiative to develop privacy standards in this expanding medium

  • Participation in several industry efforts including Short Notice, Network Advertising Initiative’s Guidelines on Web Beacons, Congressional Internet Caucus Advisory Committee, Liberty Alliance, and W3C’s P3P North American Outreach

  • Advised State of Calfornia on Social Security number guidelines

  • Improved services to licensee members including the TRUSTe newsletter, account reviews, and improved client services

  • Launch of the Wireless Privacy Initiative to develop privacy standards in this expanding medium

  • Continued development of our board with the election of former FTC Commissioner Christine Varney as TRUSTe’s Chair and the addition of several new board members

These efforts contributed to strong demand for TRUSTe’s seal in 2002, resulting in 65 percent growth in Web license revenue for TRUSTe in 2002 vs. 2001. This revenue growth, together with strong containment of costs, allowed TRUSTe to invest in the technology platform to support improved certification, compliance, and dispute resolution/enforcement efforts.

View the 2002 Year In Review. (PDF, Requires Acrobat Reader)

 
 


Former Federal Trade Commissioner Christine Varney was elected chairperson of TRUSTe’s board of directors in February 2003. Varney recently answered a few questions about her perspective on TRUSTe and privacy in general.

Q: You’re rejoining TRUSTe’s board of directors after a hiatus. What major changes have you noticed in TRUSTe’s program and its impact on the privacy landscape?

Varney: The fact that TRUSTe has thrived during the current economic difficulties speaks to the continued importance of privacy to the enterprise and the consumer. TRUSTe is in the unique position of serving both businesses with services to improve their privacy practices and consumers with a seal that signifies compliance with ever-higher standards.

Over the last couple of years, TRUSTe has increasingly become a full service privacy provider especially to larger organizations. The early days of TRUSTe were understandably dominated by new online enterprises. We now see more of the certification applications coming from Fortune 500 companies than ever before.

TRUSTe continues to increase its privacy standard requirements and improve enforcement. This is critical to maintain credibility with regulators and consumers. It’s because of the trust in the TRUSTe brand that the organization continues to grow.

Q: What do you see as the big privacy issues facing enterprises and consumers in 2003?

Varney: For enterprises, they are facing an uncertain regulatory environment, increased investments and attention to security, and the difficulties in getting their message across in email. Let’s take them one at a time:

Legislation is emerging at the state and sometimes on the local level. For large national and multinational organizations operating on the Internet, this is causing concern. How do you draw the lines? Several proposals are gaining ground at the federal level and with the review of the Fair Credit Reporting Act we are sure to see some changes. At TRUSTe, we are advocating for the creation of a Safe Harbor framework, whereby TRUSTe and other like organizations, can work with companies to bring them into compliance with legislation but with greater flexibility and the ability to evolve as technology and policy evolves.

Security. Almost all organizations are increasingly aware of their security issues. They are addressing not only physical security, but also the security of data - who has it, who can use it, who can change it, and all the rules governing authorization and use. This is good news for consumers. Security is necessary to deliver true privacy protection. At TRUSTe we expect to focus more on the security of personal identity information, especially as it moves from legacy systems to the Internet. In addition, many licensees have shown concern for the information that is passed on to their agents’ vendors and third-party partners, privacy issues that TRUSTe is interested in addressing more directly.

Email and SPAM. Many enterprises are convinced of the power of email, but with the increasing amounts of email consumers are getting, much of it unsolicited and unwanted, companies are having a difficult time getting their email delivered and read. TRUSTe is working with the ISPs, regulators, and industry groups to help identify and deliver mail from Trusted Senders and to reduce SPAM.

For consumers, privacy encompasses everything from SPAM to credit card security to identity theft. Despite increasing vigilance from law enforcement and others, consumers remain rightfully concerned over the use of their information because they fear ever-increasing SPAM and the potential for identity theft. And for consumers, over the last year, unsolicited email is becoming increasingly annoying and bothersome.

View the 2002 Year In Review. (PDF, Requires Acrobat Reader)

 
 


Interested in highlighting your privacy commitment? Already a member of the TRUSTe seal program? Consider playing a role in TRUSTe’s key initiatives in 2003:

Build TRUSTe Brand Value

  • Become one of the first licensees to display the TRUSTe On Guard online advertisement; increase overall consumer recognition of TRUSTe while enhancing the ROI of your investment in customer privacy by donating your unused ad inventory

  • Become a case study of the value of a privacy commitment by working with TRUSTe to showcase your efforts to protect your customers

  • Sponsor the Privacy Dimensions 2003 conference

For more information, contact Carolyn Hodge at 415-618-3415 or chodge@truste.org.

Raise Privacy Awareness

  • Consider corporate privacy education initiatives

  • Submit stories or letters for the monthly TRUSTe newsletter

For more information, contact Frank Babbitt at 415-618-3401 or fbabbitt@truste.org.

Share Your Points of View and Concerns

  • Let us know about your legislative initiatives and viewpoints on privacy-related issues

  • Provide feedback on TRUSTe privacy guidelines as they are issued

  • Come to TRUSTe for expert guidance early in the process when you are considering changing or updating your privacy policies (TRUSTe licensees are required to have changes approved prior to implementation)

For more information, contact Rebecca Richards at 202-483-1900 or rrichards@truste.org.

View the 2002 Year In Review. (PDF, Requires Acrobat Reader)

 

 
  Thanks to the following businesses and organizations for their ongoing support: