Privacy Seal Licensing Program

The objective of licensing programs is to provide a system of recognizing websites that are
compliance to certain privacy standard. Consensus has formed around the implementation of the
'fair information practices' as expounded in the OECD Privacy Guidelines. 25 The OECD Privacy
Guidelines outline eight basic principles:

1. Collection limitation: Data collected should be obtained by lawful means and with consent of the
data subject, where appropriate.

2. Data quality: Personal data collected should be relevant to the specific purpose, and should be
accurate, complete and kept up-to-date.

3. Purpose specification: The purpose of collecting personal data should be specified prior to
collection and subsequent use limited to the fulfillment of those purpose.

4. Use limitation: Personal data should not be used for purposes other than those specified. Any use
for other purposes must have the consent of the data subject or by authority of law.

5. Security safeguard: Reasonable security must be used to protect personal data from loss,
unauthorized access, destruction, use, modification, or disclosure.

6. Openness: There should be a general policy of openness about development, practices and
policies with respect to personal data.

7. Individual participation: Individuals should have the right to confirm the personal data, in a
reasonable amount of time, at a reasonable cost, and be given reasons for any denial of access, and
should have the right to have the data rectified or amended.

8. Accountability: A data controller should be accountable for complying with measures that give
effect to the above principles.

When personal information is to be collected, fair information practices require that only the
minimum be obtained, consistent with the purpose of the collection. Individuals should be made
aware that their personal information is being collected, and their consent sought. The objective of
these principles is to provide individuals as much control over their personal information as possible.
The following sections will look into the two licensing programs, i.e. BBBOnline and TRUSTe in
respect to the OECD basic principles.