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USA's Better Business Bureau launches a privacy seal programme [1999] PLBIRp 20; (1999) 48 Privacy Laws and Business International Report 17

Better Business Bureau launches a website privacy programme

THE USA NOW HAS ANOTHER privacy seal programme for protecting personal data on the Internet. The Better Business Bureau programme aims to strengthen US self-regulatory efforts.

The BBBOnLine, a subsidiary of the Council of Better Business Bureaus, has designed a privacy seal programme, which certifies and monitors the collection of personal data online. Companies applying for a seal must first demonstrate that they have adopted sufficient privacy protection measures with regard to the handling of personal data on their websites. Each application will be reviewed individually. Companies that gain the online privacy seal to display on their webpages commit themselves to participating in the BBBOnLine Privacy Policy Dispute Resolution Programme, and will be subject to random compliance audits.

It is just these elements that make the programme credible. In the past, the European Commission's Data Protection Working Party has regarded the programme as promising. Now it is time to see whether it will work in practice.

ENTRY CRITERIA

Companies applying for the seal must demonstrate that their website or online service is intended or directed at US residents. Security requirements include the use of encryption for sensitive data, and preventing unauthorised access. Regarding staff training, the eligibility criteria determine that it needs to be "adequate."

The actual policy has to disclose what types of personal data the company collects, and what it is used for. Elements such as individuals' right to gain access to their data, and to correct any inaccuracies, are also included. Individuals have the right to opt-out from the company using their data for other purposes. This includes transfer of data to third parties for marketing purposes. The seal participants must make any third party processors aware of the sites' privacy policies, and make sure that they keep the information confidential.

However, individuals will not be able to claim compensation through the programme if they have suffered damage. Russell Bodoff, Senior Vice President of BBBOnLine considers that in cases where the individual deserves compensation, the best place to resolve the matter is in the Court. He also emphasises that most disputes would be solved through mediation.

Companies wishing to participate in the programme need to pay an annual fee, the size of which depends on gross sales figures. The fees vary from $150 to $3,000. The programme has many corporate sponsors, some of which also support TRUSTe, another US privacy seal programme. When asked what is the main difference between the two programmes, Mr Bodoff explained that the BBBOnline programme has a much more extensive dispute resolution mechanism than TRUSTe. In addition, BBBOnLine requires companies to conduct annual compliance assessments of their online privacy practices.

BBBOnLine offers the service to all companies regardless of whether they are members of the Better Business Bureaus. At the time of the official launch of the programme, 17th March, only one company, Dell Computer Corp., had signed up. However, 300 companies had initiated the application process.

NON-COMPLIANCE RESULTS IN SEAL WITHDRAWAL

BBBOnLine will form a team of experts from its own staff to evaluate any disputes. This applies to nonmembers as well as member companies. In case of a further appeal, an independent privacy appeal board consisting of privacy advocates and academics will deal with the matter. To ensure openness, all disputes that are being negotiated will be posted on the company's website.

Member companies that do not comply with the BBB programme will lose their privacy seals. In addition, these cases may be referred to the Federal Trade Commission. It is hoped that displaying privacy seals on commercial websites will become more or less an industry standard, and thus force companies to act.

More information about the BBB programme, including a sample privacy policy, and an assessment questionnaire, is at http://www.bbbOnLine.org. Address: BBBOnLine Privacy Program, 4200 Wilson Boulevard, Arlington, VA 22203-1838, USA, Tel: +1 703 247 9311. e-mail: bbbprivacy@cbbb.bbb.org