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Privacy Laws and Business International Report

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BBB introduces compliance monitoring for privacy seals [1999] PLBIRp 47; (1999) 50 Privacy Laws and Business International Report 21

BBB introduces compliance monitoring for privacy seals

THE BETTER BUSINESS BUREAU'S (BBB) online privacy seal programme is about to introduce third party compliance checks. Underwriters Laboratories, an independent international certification organisation, will start monitoring seal holders' compliance this autumn.

The Better Business Bureau, which launched its online privacy seal service in March (BBBOnLine, see PL&B May '99 p.17), is playing an increasingly large part on the US selfregulatory scene. While the service included some audit elements from the start, bringing an independent auditor to the picture strengthens its credibility.

The privacy seal programme is based on organisations establishing privacy statements and posting them on their Internet websites. BBBOnLine grants a seal to organisations that can demonstrate that they have adopted sufficiently good privacy practices. So far, only random checks have been made to ensure that organisations keep their promises about good information handling practices.

COMPANIES WILL BE SELECTED RANDOMLY

BBBOnline and Underwriters Laboratories (UL) announced their agreement in August. "This agreement should give consumers an unprecedented level of trust in the online privacy policies of companies participating in the BBBOnLine Privacy Programme," said Russell Bodoff, Chief Operating Officer of BBBOnLine.

Bob Miller, UL Vice President of Global Programmes and Services commented: "UL's role is to visit randomly selected companies to verify whether their policies, practices and procedures for protecting website privacy information and information submitted in the BBBOnLine privacy programme assessment are in compliance with the BBBOnLine programme requirements. We are able to perform this on-site function due to our extensively trained field staff located throughout the US and abroad."

400 COMPANIES JOIN THE QUEUE

At the end of September, BBBOnLine awarded its 100th Internet privacy seal. The recipient, AT&T, joins other prominent US companies such as Dell, The New York Times, Kodak, Equifax and Nestle USA. Another 400 hundred applications wait to be assessed.

BBB claims to be the first to have a renowned independent certification organisation to conduct compliance checks. However, the programme's biggest competitor, TRUSTe also uses audits in its privacy seal programme. This organisation, founded in 1996, now has around 900 companies participating in its privacy seal programme. TRUSTe is committed, in principle, to using its third party auditors, PricewaterhouseCoopers and KPMG Peat Marwick. However, audits do not always satisfy complainants as they do not always agree on the basis of the assessment.

TRUSTe also conducts audits as a result of an investigation. Investigations can also be carried out at a consumer's request. TRUSTe has, for example, investigated the case of Microsoft, a TRUSTe privacy trustmark holder and sponsor. TRUSTe determined that Microsoft was in compliance with all TRUSTe principles.

However, the complainant, Junkbusters Corporation, demanded an independent audit. TRUSTe's reply was that an audit would only be necessary if Microsoft were found to be in breach of TRUSTe privacy principles.

More information about BBBOnLine is available at http://www.bbbOnLine.org. TRUSTe has its website at www.truste.org.


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