Janet A. Jaiswal, Mobile Product ManagementJoanne Furtsch, Privacy Policy Architect

TRUSTeOctober 28, 2010

Bringing Confidence to Mobile

TRUSTe Mobile Privacy Certification

Speakers

Janet A. Jaiswal, Director of Enterprise BU at TRUSTe As the General Manager of the Enterprise Business Unit at TRUSTe, Janet has responsibility for the Mobile Privacy Certification program. She possesses more than a decade of experience building products in the eCommerce and Internet space that specifically increase the trust and safety of its users.

Her industry knowledge was formed from previous positions held at eBay, Scient and PayPal where she was responsible for protecting more than 110 million users worldwide. In addition to her numerous publications, Janet blogs regularly on privacy and its rapidly growing impact in the area of mobility.

Follow Janet at @JJaiswal_Mobile

Joanne Furtsch, Policy & Product Architect at TRUSTeJoanne is a proven expert in online privacy practices, COPPA and European Union Safe Harbor compliance. She has helped build standards for many of TRUSTe’ certification programs. Joanne has also served on the Advisory Committee to develop the Recommended Practices on California Information-Sharing Disclosures and Privacy Policy Statements for the California Office of Privacy Protection. She is CIPP and CIPP/C certified.

• Mobile Industry Background• Key risks w/ mobile expansion• TRUSTe’ mobile certification program for privacy• Mobile Resources• Questions & Answers

• Copy of this presentation will be made available• Special offer for webinar attendees only at the end

Agenda

The smartphone market has entered a new phase

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6

5

4

3

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6 Trends Shaping the App Market in 2010

Increased absolute market growth

Companies are getting there

Smartphone shipments remain key market driver

Omnipresence of Android

Apple’s competitors increased market share

Slow down of price decline

Source: research2guidance global developer survey

The mobile apps vs. mobile web battle continues

80% of companies were planning or had already deployed a mobile website.

8% of respondents were interested in applications.

-Adobe’s “Scene7 Rich Mobile Commerce Survey” Jul. ‘10

Apple’s iTunes Store has approx. 300,000 apps

Google’s Android marketplace has approx. 100,000 apps

2009 (full year) 2010 (1H)

App Market Revenue $1.7 B US $2.2 B US

No. of Apps Downloaded 3.1 B 3.9 BSource: Research2guidance

Mobile usage and mobile commerce is experiencing tremendous growth

On any given day, 57.8 million Americans consumers access the web via mobile devices. 82% of adults are cell phone users & 35% of US

adults with cell phones have apps.

-The Pew Internet Project Survey (Feb’10)

15% of consumers have made purchases with a mobile device.

-AT&T’s Sterling Commerce & Demandware, Inc

US mobile commerce sales will be $2.4 Billion in 2010 (100% growth YOY) and $119 Billion by 2015 (total ecommerce in the US in 2010 is $132 Billion)

-ABI Research

Mobile retail continues to grow and early adopters are already reaping rewards

40% percent of global subscribers are predicted to pay for physical and digital goods by 2014

with the mobile phone.

-Juniper Research

530 million users browsed the mobile web on their handset in 2006.

1 Billion are expected to browse the mobile web by 2015.

-Strategy Analytics

Mobile retail continues to grow and early adopters are already reaping rewards

Percent of cell phone users who used a map or other service that used location data: 26 percent

-Wireless Week

Percent of iPhone owners who use location services at least 1/week: 63 percent

-Mobile Marketing Association

Amount of money estimated to be spent by businesses on

location-based advertising campaigns in 2015: $1.8 Billion

Privacy Concerns with Mobile

Despite its popularity & growth there are some concerns

66% of US consumers are not comfortable with using their mobile device for financial transactions.

– KMPG (2009)

55% of Smartphone users fear loss of privacy through mobile apps w/ geo-location services.

-Webroot (Jul. ‘10)

52% of mobile users are “very or extremely concerned” about loss of privacy from using

location-aware mobile apps.

-Poynter Online (Jul. ’10)

71% of consumers look for trust seals before doing business online.

-Yankee Group (Feb’09)

Mobile privacy issues

• Exploding mobile application use

• High consumer privacy concerns

• Unique privacy issues:– Use of geo-location technology

– High potential for intrusive marketing (think geo-location + advertising)

– Increasing “Social” experience

– Sensitive data is highly “mobile”

– Extends internet privacy concerns on advertising and analytics

• Form factor constraints typical presentation of privacy policy and choices

I have no data privacy/security concern

Receiving unsolicited promotional material

The potential for credit card information to be intercepted by an unauthorized party

The threat of unauthorized parties accessing PII

0% 20% 40% 60% 80%

8%

44%

69%

73%

When using a mobile device, which of the following concerns do you have about data privacy/security?

Source: KPMG Mobile Banking Survey 2009. Scope: Global, 4190 mobile device users

Recent privacy breaches

1 Study by Eric Smith, Asst. Director of Info. Security & Networking at Bucknell University in Lewisburg, PA, Oct 1, 20102 TaintDroid study by researchers from Duke University, Penn State University, and Intel Labs on September 30, 2010

iPhone Apps Sending Out Devices' Serial Numbers, Log-In ID 1

A study of 57 of the most popular iPhone apps found that 68% transmitted the devices' unique serial numbers to remote servers owned by either the developer or an advertiser. Furthermore, many applications -- including Amazon, Facebook and Twitter -- also collected users' log-in data.

Recent privacy breaches

1 Study by Eric Smith, Asst. Director of Info. Security & Networking at Bucknell University in Lewisburg, PA, Oct 1, 20102 TaintDroid study by researchers from Duke University, Penn State University, and Intel Labs on September 30, 2010

Some Android apps were caught covertly sending GPS data to advertisers 2  

• A study tested 30 popular free Android applications and found that half were sending private information to advertising servers, including the user's location and phone number.

• In some cases, the apps were relaying GPS coordinates to remote advertising network servers as frequently as every 30 seconds, even when not displaying advertisements.

Another privacy breach: Facebook & 3rd party apps

What happened?October 18th, The Wall Street Journal found that many of the most popular applications, or "apps," on Facebook have been transmitting identifying information—providing access to people's names and, in some cases, their friends' names—to dozens of advertising and Internet tracking companies”

Who was involved? • The Journal examined the 10 most popular apps on Facebook include Zynga’s FarmVille, Texas HoldEm Poker and FrontierVille.

• Three of the top 10 apps also have been transmitting personal information about a user's friends to outside companies.

• In all, 12 companies were involved in the most recent shut down• 10s of millions of users were affected

What was the result?•LOLapps Media Inc. was shut down suddenly and unexpectedly by Facebook as the Journal found them to be transmitting user IDs.

•Facebook made several other apps unavailable.

Example of a privacy issue: Use of geo-location

• Many mobile devices sold today are capable of pinpointing users within 30 feet of their actual location. Location-aware apps can:

– Bring discounts and promotions directly to users at the point of purchase

– Provide valuable, real-time data about customer preferences.

– Help Marketers to target offers and advertisements through increased relevance, accuracy, and timeliness.

• Company benefits: This data, in aggregate, is used to provide data on key market trends, or integrated into a customer profile to provide a more personalized experience.

• Consumer benefits: Gains access to information that can be instantly relevant to a purchasing decision including location-specific discounts and services

Example best practices

Provide users with transparency and remain accountable– Use clear messaging re: use of location data– Secure this data through encryption etc.– Ensure adequate consumer redress mechanisms for those who want to remove

their location data

Provide users with choice (i.e. ask users permission to use their location information before you collect it)– Meaningful choice is when consumers understand the implications of sharing

their data.

Have a privacy trust mark– Users will reward companies who make strong commitments to their privacy– Users recognize established trust marks (like TRUSTe) means a company has

undergone rigorous vetting by an independent 3rd party

Trust

# of downloads

# of registrations

# and purchase amount

Mobile App and Mobile Web

Certification for Privacy

• Extension of TRUSTe’s Privacy Certification for Mobile Web and Mobile Applications

– Offers consumers the same privacy commitment as web site certification

– Express consent required for the collection and use of geo-location data

• Features unique and accessible Layered Short Privacy Notice

– Calls out most significant privacy concerns for enhanced consumer transparency and access

TRUSTe Mobile Certification for Privacy

• All key platforms are supported

• Certification Deliverables:

– Mobile App and/or Mobile Web Certification

– Short Notice with Layered Privacy Policy

– Unified policy for mobile and PC web site

– Dispute Resolution / Consumer Feedback system

– Small Device-Optimized

• TRUSTe seal

• Validation page

• Dispute Resolution

– Listing in TRUSTe Mobile Certification Directory

TRUSTe Mobile Certification for Privacy

Mobile Certification Benefits

• Business value proposition

– Address consumer privacy concerns

– Convey privacy commitment

– Enjoy download and registration lift

– More easily deliver privacy information and choices on space constrained device

– Part of comprehensive and unified privacy program

START PAGE W/ APP CERTIFICATION SEAL EXAMPLE

Key Element: New Layered Short Privacy Notice

• User Benefits

– Improves transparency

– Icons for increased understanding and access

– Empowers consumers to make informed decisions

• Expected Results

– Increased Trust

– Higher Downloads

– Greater Consumer Engagement

– Improved Compliance

Link to Interactive Example: www.truste.com/mobile

LAYERED PRIVACY POLICY

DETAILED PRIVACY POLICY PAGE: Location Services

DETAILED PRIVACY POLICY PAGE: Tracking & Ads

Form-Factor Optimized Dispute Resolution

CERTIFICATION VALIDATION PAGE

DISPUTE RESOLUTION PAGE FOR CONSUMERS TO PROVIDE FEEDBACK

Client Examples

Client Example #1: Yelp iPhone App

SETTINGS SCREEN

CERTIFICATION VALIDATION PAGE

PRIVACY POLICY

SUMMARY PRIVACYPOLICY PAGE – Location Services

HOME PAGE

Client Example #2: Thumbspeak’s iPhone App

APP HOME SCREEN ABOUT SECTIONSHORT NOTICE

PRIVACY POLICYCERTIFICATION

VALIDATION PAGE

Select mobile privacy program clients

Key Takeaways

• More and more users are becoming mobile: Demand for a mobile presence will become more and more critical to business success

• Given the crowded app marketplace, the high cost and resources investment involved, do not risk user distrust & associated backlash. Instead:– Convey privacy commitment which will increase user engagement, registration

and download rates – Differentiate your app based on user trust– Avoid getting into trouble re: user privacy

• Mobile privacy certification is especially critical if a mobile app or web utilizes any of the following:

• Geo-location• Advertising especially if combined with geo location or behavior• Social media technologies (i.e. sign in with your Facebook account ID)• Collection of Personally Identifiable Information (PII)

Why TRUSTe’s Mobile Privacy Certification Program?

Privacy Expertise

Only Mobile privacy certification provider

100% privacy-focused since 1997

Comprehensive privacy services• Mobile• Advertising • Downloadable software• eMail• Lead Generation Forms• Service platforms • Web site

Most Recognized Privacy Trustmark

Leading Customers: >40% of the Top 50 most trafficked websites;

13 of Fortune 100

Brand Awareness: More than 1 in 3 consumers report having seen the TRUSTe seal

Results: Average of 5 – 20+% uplift for customers

Customer Service

Dedicated Client Services Manager (CSM) for each account

CIPP-certified CSMs(Certified Info. Privacy Professional)

Online Account Access

Ongoing advice on all things privacy

Privacy library access

Special Offer for Today’s Webinar Attendees

• 10% discount for anyone that signs up for a Mobile App or Mobile Web certification by November 30th

• Must mention code: 1028JJ

• Interactive short notice demo & mobile program information: www.Truste.com/Mobile

• White Papers: Mobile Privacy and Location & Privacy

• Blogs series on mobile and privacy (http://www.truste.com/blog/?cat=114)

1. Overview of the mobile space & privacy

2. Privacy implications on the use of location technology

3. Mobile app vs. mobile web

4. Incorporating privacy into good design

5. Mobile commerce plan that addresses consumer privacy concerns

6. Using advertising successfully requires paying attention to privacy issues

7. Using social networking technologies successfully on mobile while navigating privacy issues (coming soon!)

• Chetan Sharma, GigaOm Pro Analyst: Blog on Privacy as a Competitive Advantage in Mobile

Mobile Privacy Resources

Questions and Answers

Don’t forget to fill out the survey

Janet A. Jaiswal

Director & Mobile Product Managerjjaiswal@truste.comTwitter: JJaiswal_Mobile

Access Resources atwww.truste.com/mobile

Thank You!