TRUSTe
Encyclopedia
TRUSTe is a company based in San Francisco, California
, best known for its online privacy seals. TRUSTe operates the world’s largest privacy seal program, certifying more than 3,500 websites, including leading online portals and brands like Yahoo, Facebook
, Microsoft
, Apple Inc., IBM
, Oracle Corporation
, Intuit and eBay
. In addition to its range of privacy seals TRUSTe's professional services include site reputation management, trust seal
s, privacy policy generation, vendor evaluation and consumer privacy dispute resolution.
, then executive director of the Electronic Frontier Foundation
(EFF), and Charles Jennings, a software entrepreneur, with the mission of fostering online commerce by helping businesses and other online organizations self-regulate privacy concerns. Toward this end TRUSTe launched its flagship Privacy Seal Program, providing privacy seals to websites who abide by a set of fair information privacy practices and agreed to participate in the company's consumer privacy dispute resolution service.
In 2000, TRUSTe became the first organization to join the U.S. Department of Commerce's European Union (EU) safe harbor framework and subsequently launched its EU Safe Harbor Seal Program. The US-EU Safe Harbor was agreed upon by the U.S. Department of Commerce and the European Union to provide a framework for American companies to comply with European data and privacy standards.
In 2001, TRUSTe became a Children's Online Privacy Protection Act (COPPA) Safe Harbor organization for the Federal Trade Commission and thereafter launched its Children's Privacy Seal Program.
Fran Maier, co-founder of Match.com, joined TRUSTe as Executive Director in 2001. One of the first efforts was to address consumer issues with spam or unwanted email.
In 2006, TRUSTe launched its Trusted Download Program, designed to separate “good” downloadable software from adware and spyware.
In 2008, TRUSTe changed its structure from a non-profit industry association to a venture-backed for-profit, raising its first round of capital from Accel Ventures.
Chris Babel, former Senior Vice President of VeriSign’s worldwide Authentication Services, joined TRUSTe as chief executive officer in November 2009.
It indicates only that the site has self-certified as complying with the site's own privacy statement.
in 2000.
From 2000 to June 2004, TRUSTe published "Watchdog Reports" reporting their enforcement actions. The final report, for June 2004, shows 256 reports received and 130 reports closed. All 130 reports were resolved with "Issue Handles with no changes necessary to the Privacy Statement nor the Site". In no case was an enforcement action taken. In 2004, no enforcement actions were taken. In 2003, one enforcement action was taken, out of over a thousand complaints. After June 2004, TrustE ceased reporting on enforcement actions, despite the statement in its FTC filing that it would publish such reports at least twice a year.
Dr. Benjamin Edelman of the Harvard Business School
found in January 2006 that sites with TRUSTe certification were 50% more likely to violate privacy policies than uncertified sites.
Dr. Edelman has also reported that TRUSTe does not go far enough to punish seal holders that break TRUSTe’s rules and that the organization is not quick enough in revoking the seal on companies that violate privacy standards.
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
, best known for its online privacy seals. TRUSTe operates the world’s largest privacy seal program, certifying more than 3,500 websites, including leading online portals and brands like Yahoo, Facebook
Facebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...
, Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
, Apple Inc., IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
, Oracle Corporation
Oracle Corporation
Oracle Corporation is an American multinational computer technology corporation that specializes in developing and marketing hardware systems and enterprise software products – particularly database management systems...
, Intuit and eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
. In addition to its range of privacy seals TRUSTe's professional services include site reputation management, trust seal
Trust seal
A Trust seal is a seal awarded by proprietary companies to businesses to display, in an attempt to boost customer confidence. There are several well-known trust seals from different companies, and the requirements for the displaying merchant vary, but typically involve a dedication to good security...
s, privacy policy generation, vendor evaluation and consumer privacy dispute resolution.
History
TRUSTe was founded as a non-profit industry association in 1997 by Lori FenaLori Fena
Lori Fena is an American internet activist, entrepreneur, and author, best known as the former director of the Electronic Frontier Foundation from 1995–98 and author of "The Hundredth Window".-Business:...
, then executive director of the Electronic Frontier Foundation
Electronic Frontier Foundation
The Electronic Frontier Foundation is an international non-profit digital rights advocacy and legal organization based in the United States...
(EFF), and Charles Jennings, a software entrepreneur, with the mission of fostering online commerce by helping businesses and other online organizations self-regulate privacy concerns. Toward this end TRUSTe launched its flagship Privacy Seal Program, providing privacy seals to websites who abide by a set of fair information privacy practices and agreed to participate in the company's consumer privacy dispute resolution service.
In 2000, TRUSTe became the first organization to join the U.S. Department of Commerce's European Union (EU) safe harbor framework and subsequently launched its EU Safe Harbor Seal Program. The US-EU Safe Harbor was agreed upon by the U.S. Department of Commerce and the European Union to provide a framework for American companies to comply with European data and privacy standards.
In 2001, TRUSTe became a Children's Online Privacy Protection Act (COPPA) Safe Harbor organization for the Federal Trade Commission and thereafter launched its Children's Privacy Seal Program.
Fran Maier, co-founder of Match.com, joined TRUSTe as Executive Director in 2001. One of the first efforts was to address consumer issues with spam or unwanted email.
In 2006, TRUSTe launched its Trusted Download Program, designed to separate “good” downloadable software from adware and spyware.
In 2008, TRUSTe changed its structure from a non-profit industry association to a venture-backed for-profit, raising its first round of capital from Accel Ventures.
Chris Babel, former Senior Vice President of VeriSign’s worldwide Authentication Services, joined TRUSTe as chief executive officer in November 2009.
Meaning of TRUSTe seal
The TRUSTe seal does not indicate that a web site complies with any specific set of privacy rules, such as the European Union's Data Protection Directive.It indicates only that the site has self-certified as complying with the site's own privacy statement.
Enforcement
TRUSTe claims to enforce its privacy rules, and operates a "Watchdog" operation which accepts consumer complaints. TRUSTe described its enforcement process in a filing with the U.S. Federal Trade CommissionFederal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
in 2000.
From 2000 to June 2004, TRUSTe published "Watchdog Reports" reporting their enforcement actions. The final report, for June 2004, shows 256 reports received and 130 reports closed. All 130 reports were resolved with "Issue Handles with no changes necessary to the Privacy Statement nor the Site". In no case was an enforcement action taken. In 2004, no enforcement actions were taken. In 2003, one enforcement action was taken, out of over a thousand complaints. After June 2004, TrustE ceased reporting on enforcement actions, despite the statement in its FTC filing that it would publish such reports at least twice a year.
Dr. Benjamin Edelman of the Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
found in January 2006 that sites with TRUSTe certification were 50% more likely to violate privacy policies than uncertified sites.
Dr. Edelman has also reported that TRUSTe does not go far enough to punish seal holders that break TRUSTe’s rules and that the organization is not quick enough in revoking the seal on companies that violate privacy standards.