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Truth in Privacy: the Year Ahead

Chris Babel CEOTRUSTe

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What is “Truth in Privacy” ?

Definition Providing transparency, choice

and accountability when collecting and using personal information.

Transparency – what are you going to do with my data?

Choice – where can I make decisions about my data use

before, not after the fact?

Accountability – how will you protect my data and

respond in the event of breach or misuse?

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What Does It Look Like In Practice?

Transparency

Accountability

Choice

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Lessons Learned In 2010: Google Buzz

Before After

What they fixed: Choice

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Lessons Learned In 2010: Facebook’s Social Graph

Before After

What they fixed: Transparency and Choice

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Looking Forward

Why andwhere can webetter implementthese principles in 2011?

Transparency

Accountability

Choice

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2011: Why Privacy Matters

90% of consumersbelieve it’s important that a website have a privacy policy1

46% of consumersare uncomfortable with online behavioral advertising without transparency and choice2

55% of consumershave decided not to use a website or not to purchase something online because they were not sure how their personal information would be used2

Most companies don’t provide these things

56% of small business websites don’t have one3

Companies need to provide better notice

Good for consumers. Good for businesses too. Websites with a TRUSTe privacy seal

have experienced anywhere from 5-85% increases in conversion rates.

Websites with a TRUSTe privacy seal have experienced anywhere from 5-85% increases in conversion rates.

1. TRUSTe Brand Survey 20092. “Future of Privacy Forum Online Behavioral Advertising “Icon” Study”. January 25, 2010 http://futureofprivacy.org/final_report.pdf3. http://www.truste.com/about_TRUSTe/press-room/news_truste_smb_neglect_privacy.html

1. TRUSTe Brand Survey 20092. “Future of Privacy Forum Online Behavioral Advertising “Icon” Study”. January 25, 2010 http://futureofprivacy.org/final_report.pdf3. http://www.truste.com/about_TRUSTe/press-room/news_truste_smb_neglect_privacy.html

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2011: Provide Notice Outside The Privacy Policy

1500+ words

Dense

Not easily accessible

Not contextual

We need simpler privacy notices located where actual personal data decisions occur. Providing too much information defeats the purpose of disclosure, since no one reads it.

– Supreme Court Justice John Roberts

Source: http://www.abajournal.com/news/article/chief_justice_roberts_admits_he_doesnt_read_the_computer_fine_print/

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2011: Simplify Privacy Notices

Icon notice

Short notice

Icon source: http://www.azarask.in/blog/post/privacy-icons/#

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2011: Mobile Privacy Concerns Are Prevalent

87% of consumersare concerned about privacy and security on mobile devices1

55% of consumersfear loss of privacy through mobile apps and geo-location services.2

66% of consumersAre not comfortable using their mobile device for financial transactions1

1. KPMG Mobile Banking Survey 2009 of 4,190 mobile device users2. Geolocation Survey conducted by Webroot on July 13, 2010

1. KPMG Mobile Banking Survey 2009 of 4,190 mobile device users2. Geolocation Survey conducted by Webroot on July 13, 2010

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2011: Offer Choices Around Mobile Location Data Use

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2011: Adapt Privacy Notices To The Mobile Screen

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2011: With Apps, It’s Not Just About Mobile

Social Apps

Browser AppsDesktop Apps

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2011: Advertising Transparency And Choice

Advertising Option Icon

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2011: Provide Advertising Privacy Choices

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2011: Don’t Fear The Opt-out

What happens when millions of consumers are offered the choice to opt-out of online tracking?

•~1% click the icon1

•~1% changed preferences 1

1. Results from testing of TRUSTed Ads on www.pchlotto.com1. Results from testing of TRUSTed Ads on www.pchlotto.com

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Summary

“Truth In Privacy” means providing Transparency, Choice and Accountability in the collection and processing of personal information.

2010 and years prior were “reactive privacy”

2011 and beyond privacy becomes an asset rather than an afterthought

“Truth in Privacy” goes way beyond standard privacy policies:

– Privacy short notices outside of the privacy policy

– Apps – mobile, platforms like Facebook, PC/Mac app stores

– Online advertising

Businesses with good privacy are rewarded and those with bad practices are penalized

TRUSTe is the one company able to assist across website, apps, mobile and online advertising to drive business benefit