Frequently Asked Questions
What are the key differences between L.A. 8.0 and L.A. 9.0?
Why did TRUSTe make these changes?
How will TRUSTe roll out L.A. 9.0?
Will TRUSTe members need to change their privacy statement or privacy practices to be in compliance with L.A. 9.0?
Do current TRUSTe Licensees need to fill out a new self-assessment?
When was the last time TRUSTe created a new version of the License Agreement?
Is there a process appealing a TRUSTe decision to terminate a licensee for convenience?
Q. What are the key differences between L.A. 8.0 and L.A. 9.0?
A: TRUSTe has changed the License Agreement to simplify the steps Licensees must take for renewals, to clarify the circumstances under which the Agreement may be assigned to another company (i.e., in a business transition such as a merger or acquisition), and to clarify the procedures for appealing Notices of Termination. New requirements for email newsletters and promotional emails have been added to the Program Requirements to reflect certain provisions of the federal CAN-SPAM Act. Highlights of the changes are as follows:
Renewals / Re-certifications
Rather than sign a new License Agreement at the end of each license term, Licensees will sign a brief addendum extending the Licensee Agreement and submit any proposed Material Changes in their privacy practices or privacy statement for TRUSTe approval.
Beginning with L.A. 9.0, licensees will submit a full self-assessment every three years, regardless of the length of their license term (with exceptions, e.g., in the case of an assignment or when the Program Requirements have changed). COPPA and EU Safe Harbor program participants must continue to complete a new self-assessment annually, in keeping with the specific requirements of those programs.
Assignments
In response to Licensees' concerns, TRUSTe has made it clear that a Licensee may assign its rights and obligations under the License Agreement with notice to TRUSTe, provided that the company to which the Agreement is transferred (1) owns the Web site on which the TRUSTe seals are posted; (2) agrees to undertake all of the Licensee's obligations under the Agreement; (3) signs the License Agreement; and (4) completes a new self-assessment.
Appeals
The License Agreement provides an appeals process for the rare circumstance in which TRUSTe issues a Notice of Termination. L.A. 9.0 clarifies that all appeals from terminations based upon a Licensee's violation of its privacy statement or of the Program Requirements will be heard by the TRUSTe Appeals Committee, rather than by TRUSTe's Board of Directors. The Appeals Committee will be composed of two privacy experts who are not TRUSTe employees and two members of TRUSTe's Board. The Appeals Committee procedures are posted here.
Email
TRUSTe has established key minimum requirements for email, in response to the CAN-SPAM Act. Licensees who sign L.A. 9.0 must include a postal address and a functional unsubscribe mechanism in all email newsletters and promotional messages, except administrative or customer service-related emails and communications a customer has agreed to receive as a condition of using a Licensee's service (e.g., in the case of free email accounts).
The unsubscribe mechanism must be functional for 30 days. Licensees must honor a customer's unsubscribe request beginning on the tenth business day after it is received, and may not re-contact the customer unless he or she subsequently asks to be contacted.
In light of these new requirements, as well as developments in industry practice, we have removed the Shelf Life Preferences provisions from the Program Requirements.
Q. Why did TRUSTe make these changes?
A: We work continually with our Licensees, federal and state regulators, industry and consumer groups and others interested in privacy to refine and strengthen the TRUSTe program, to ensure that it reflects both applicable law and best industry practices. The result of this process is Program Requirements that are effective for both businesses and consumers.
Q. How will TRUSTe roll out L.A. 9.0?
A: Version 9.0 of the License Agreement is available now via the TRUSTe Web Site here. Companies that are new to the program will sign version 9.0. Current members will be moved to version 9.0 as their license agreements expire.
Q. Will TRUSTe members need to change their privacy statement or privacy practices to be in compliance with L.A. 9.0?
A: When current licensees transition to version 9.0 of the License Agreement, their privacy statements and privacy practices may need to change to reflect the new Program Requirements for email, if they do not already do so. We strongly suggest that Licensees consult their legal advisors on how best to comply with the CAN-SPAM Act.
Q. Do current TRUSTe Licensees need to fill out a new self-assessment?
A: All licensees on L.A. 9.0, other than participants in the COPPA and Safe Harbor seal programs (who complete a self-assessment annually), must complete a new self-assessment every three years regardless of the length of their License term. If a Licensee wishes to make Material Changes in its privacy practices and privacy statement, it must submit the proposed changes for TRUSTe's approval. Depending upon the extent of the changes, TRUSTe may require an update to the self-assessment that reflects those changes.
TRUSTe will require a new self-assessment when the License Agreement has been assigned (e.g., in the case of a business transition such as a merger), or when TRUSTe deems it necessary to conduct an investigation in response to complaints about a Licensee's privacy practices.
Q. When was the last time TRUSTe created a new version of the License Agreement?
A: Version 8.0 of the TRUSTe License Agreement was introduced in November 2002.
Q. Is there a process appealing a TRUSTe decision to terminate a licensee for convenience?
A: Sections VII.C. and VII.E of TRUSTe License Agreement 9.0 provide that, in the unlikely event that TRUSTe terminates a Licensee for convenience, the Licensee may appeal that decision to TRUSTe’s Board of Directors (“TRUSTe Board”). The appeals process is as follows:
- TRUSTe will send Licensee a Notice of Termination for Convenience 20 business days prior to termination.
- Licensee has 5 business days from receipt to invoke review by the TRUSTe Board by submitting a written statement to TRUSTe explaining why the termination should not go forward and requesting an appeal.
- TRUSTe will transmit Licensee’s appeal to the TRUSTe Board within 5 business days of receipt of such statement.
- The TRUSTe Board will review Licensee’s request and will endeavor to reach a decision within 15 business days.
- The TRUSTe Board will transmit its decision to the Licensee and to TRUSTe within 30 calendar days.
- Termination shall become effective upon completion of Board Review unless more than twenty-five percent (25%) of the members of the Board then in office object to the termination.
To learn about the process applicable to Appeals from TRUSTe’s decision to terminate a Licensee in other circumstances, read the description of the TRUSTe Watchdog Dispute Resolution process at http://truste.org/consumers/compliance.php.
