TrustArc

TrustArc was founded as a non-profit industry association called TRUSTe in 1997 by Lori Fena, then executive director of the Electronic Frontier Foundation, and Charles Jennings, a software entrepreneur, with the mission of fostering online commerce by helping businesses and other online organizations self-regulate privacy concerns.{{cite book|last1=Fena|first1=Lori|last2=Jennings|first2=Charles|title=The Hundredth Window|date=2003|publisher=Simon & Schuster|location=Archive.org|page=xix|url=https://archive.org/details/100thWindowSelectedPages|access-date=27 August 2017|quote=Lori still serves on its board of directors as chair ...}}{{cite book|title=The Hundredth Window:Protecting Your Privacy and Security in the Age of the Internet|year=2000|publisher=Simon and Schuster Free Press|isbn=068483944X}}

In 2000, TRUSTe became the first organization to join the Safe Harbor framework of the U.S. Department of Commerce and the European Union, and subsequently launched its EU Safe Harbor Seal Program.{{cite web |url=http://judiciary.house.gov/legacy/fena_071201.htm |title=Thank you for inviting me today to talk about TRUSTe and our experience with the WHOIS sys |website=judiciary.house.gov |url-status=dead |archive-url=https://web.archive.org/web/20050226102140/http://judiciary.house.gov/legacy/fena_071201.htm |archive-date=2005-02-26}} The EU-US Safe Harbor was agreed upon by the Department of Commerce and the EU to provide a framework for American companies to comply with European data and privacy standards.[https://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=2906&context=facpubs The EU-U.S. Privacy Collision: A Turn to Institutions and Procedures], 126 Harv. L. Rev. 1966 (2013)

In 2001, TRUSTe became a Children's Online Privacy Protection Act Safe Harbor organization for the Federal Trade Commission and thereafter launched its Children's Privacy Seal Program.{{Cite web|url=http://www.business.ftc.gov/content/truste|title=Children's Privacy Seal}} That year, Fran Maier, who had helped build Match.com and had been running the company following the departure of its co-founder, Gary Kremen, joined the organization as executive director.{{cite news|last1=Angwin|first1=Julia|author-link=Julia Angwin|title=LOVE'S LABOR LOST Online matchmaker still seeks love, money|url=http://www.sfgate.com/business/article/LOVE-S-LABOR-LOST-Online-matchmaker-still-seeks-3013097.php|access-date=28 September 2017|publisher=San Francisco Chronicle|date=February 12, 1998|pages=B3}}{{cite web|url=http://www.ftc.gov/bcp/workshops/glb/index.shtml|title=Interagency Public Workshop: Get Noticed: Effective Financial Privacy Notices|date=24 July 2013}} One of her first efforts was to address consumer issues with email spam, which at the time was estimated to comprise 59 percent of all email traffic.{{cite web|url=http://news.cnet.com/2100-1023-826747.html|title=Privacy group to put seal on spam|work=CNET}}

The same year, TRUSTe's founding executive director, Susan Yamada, who was formerly editor of Upside Magazine, resigned, though later went on to serve as board chair.

In 2008, TRUSTe changed its structure from a non-profit industry association to a venture-backed for-profit company, raising its first round of capital from Accel Partners. This raised the question of whether a for-profit company would be less stringent on the companies it certifies than a non-profit.{{cite news |

url=http://bits.blogs.nytimes.com/2008/07/15/will-profit-motive-undermine-trust-in-truste/ |

work=New York Times |

author=Hansell, Saul |

title=Will the Profit Motive Undermine Trust in Truste? |

date=July 15, 2008}}

In November 2009, Chris Babel, former Senior Vice President of VeriSign's worldwide Authentication Services, joined TRUSTe as chief executive officer.{{cite web|url=https://www.trustarc.com/people/|title=People|publisher=TrustArc|access-date=2017-06-07}} Maier remained active in the company until 2014, serving variously as president, CEO and board chair.

In 2013, TRUSTe was approved by the [http://www.edaa.eu European Interactive Digital Advertising Alliance] as an official certification provider for the EU Self-Regulatory Programme for Online Behavioural Advertising.{{Cite web|url=https://www.edaa.eu/edaa-approves-truste-bpa-worldwide-and-eprivacyconsult-as-certification-providers/|title=EDAA approves TRUSTe, BPA Worldwide and ePrivacyconsult as Certification Providers|date=July 15, 2013}} The same year, TRUSTe was named the first approved Accountability Agent for the Asia-Pacific Economic Cooperation's Cross Border Privacy Rules System.{{Cite web|url=https://www.apec.org/Press/Features/2013/0903_cbpr|title=The Cross Border Privacy Rules System: Promoting consumer privacy and economic growth across the APEC region|website=APEC}}{{cite web|title=APEC CROSS-BORDER PRIVACY RULES SYSTEM|url=http://www.apec.org/Groups/Committee-on-Trade-and-Investment/~/media/Files/Groups/ECSG/CBPR/CBPR-PoliciesRulesGuidelines.ashx|website=Apec.org|publisher=Asia Pacific Economic Cooperation Secretariat|access-date=26 September 2017|page=4|format=PDF}}

In 2016, in an effort to help companies prepare for the European Union's General Data Protection Regulation, which extends the scope of the EU data protection law established in 1995 to all foreign companies processing data of EU residents, TRUSTe partnered with the International Association of Privacy Professionals to offer free compliance assessments of a company's privacy practices.{{cite web|last1=European Union|title=DIRECTIVE 2002/58/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12 July 2002|url=http://ec.europa.eu/justice/data-protection/law/files/recast_20091219_en.pdf|website=EC.Europa.EU|publisher=European Union|access-date=14 November 2017|quote=concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and electronic communications)}}{{cite web|last1=International Association of Privacy Protection|title=IAPP & TRUSTe GDPR Readiness Assessment|url=https://iapp.org/resources/article/gdpr-readiness-tool|website=IAPP.org|access-date=14 November 2017}}

On June 6, 2017, the company changed its name from TRUSTe to TrustArc.{{cite web|url=http://www.trustarc.com/blog/2017/06/06/truste-transforms-to-trustarc/|title=TRUSTe Transforms to TrustArc|publisher=TrustArc|date=Jun 6, 2017|access-date=2017-06-07}}

File:TRUSTe_Logo.png

TrustArc's certification subsidiary, TRUSTe, provides privacy dispute resolution services, designed to help oversee consumer requests and complaints regarding the privacy practices of those companies participating in TRUSTe's program.{{cite web|title=Privacy Dispute Resolution|url=https://www.trustarc.com/products/dispute-resolution-services/|website=TrustArc.com|access-date=27 September 2017|quote=helps efficiently manage privacy inquiries ...}}

A Wired article in 2002 questioned whether TRUSTe certification could be trusted, noting that "TRUSTe officials often seemed to be covering for their clients" rather than revoking privacy seals for violations.{{cite news |

publisher=Wired |

url=https://www.wired.com/techbiz/media/news/2002/04/51624?currentPage=all |

date=April 9, 2002 |

title=Just how Trusty is TrustE?|

author=Boutin, Paul}}

In January 2006, Harvard economics researcher Benjamin Edelman published a study showing that sites with TRUSTe certification were 50 percent more likely to violate privacy policies than uncertified sites.{{cite web|url=http://www.benedelman.org/news/092506-1.html|title=Certifications and Site Trustworthiness|date=September 25, 2006|first=Benjamin|last=Edelman|access-date=2008-07-03}} Edelman also reported that TRUSTe did not go far enough to punish seal holders that break their rules and was not prompt enough in revoking the seal on companies that violate privacy standards.{{cite web|url=http://www.benedelman.org/news/031808-1.html|title=Coupons.com and TRUSTe: Lots of Talk, Too Little Action|date=March 18, 2008|first=Benjamin|last=Edelman|access-date=2008-07-03}}

On November 17, 2014, the Federal Trade Commission announced that TRUSTe had agreed to settle a complaint that it misrepresented to consumers its recertification program, and its status as a non-profit entity, against a $200,000 penalty.{{Cite web|url=https://www.ftc.gov/news-events/press-releases/2014/11/truste-settles-ftc-charges-it-deceived-consumers-through-its|title=TRUSTe Settles FTC Charges it Deceived Consumers Through Its Privacy Seal Program|date=November 17, 2014|website=Federal Trade Commission}} The FTC complaint alleged that from 2006 to 2013, TRUSTe failed, in over 1000 instances, to conduct annual privacy checks on the companies it certified.{{cite web|last1=Clark|first1=Daniel S.|title=UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION Complaint 1323219|url=https://www.ftc.gov/system/files/documents/cases/141117trustecmpt.pdf|website=FTC.gov|publisher=Federal Trade Commission|access-date=27 September 2017|location=para 1}}{{cite news | title=F.T.C. Penalizes TRUSTe, a Web Privacy Certification Company | work=New York Times | url=https://www.nytimes.com/2014/11/18/technology/ftc-penalizes-truste-a-web-privacy-certification-company.html | date=Nov 17, 2014 | author=Wyattnov, Edward }} Consumer organizations, including Center for Digital Democracy and the Consumer Federation of America, argued for higher penalties and more FTC oversight, but the FTC declined to increase the penalties.{{cite news | url=http://www.mediapost.com/publications/article/245970/truste-finalizes-settlement-with-ftc.html | publisher=Media Post | title=TRUSTe Finalizes Settlement With FTC | author=Davis, Wendy | date = March 18, 2015 }} FTC Commissioner Maureen Ohlhausen issued a partial dissent to the FTC ruling, "because TRUSTe never misrepresented its corporate status," and had informed clients of its for-profit status.{{cite web|last1=Ohlhausen|first1=Maureen K.|title=Partial Dissent of Commissioner Maureen K. Ohlhausen - In the Matter of True Ultimate Standards Everywhere, Inc. ("TRUSTe")|url=https://www.ftc.gov/public-statements/2014/11/partial-dissent-commissioner-maureen-k-ohlhausen-matter-true-ultimate|newspaper=Federal Trade Commission|publisher=Federal Trade Commission of the United States|access-date=27 September 2017|date=November 17, 2014}}

• General Data Protection Regulation
• EU-US Privacy Shield
• California Privacy Rights Act

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• {{Official website|http://www.trustarc.com/ }}

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Category:Internet privacy organizations

Category:Politics and technology

Category:Self-regulatory organizations in the United States

Category:Companies established in 1997