-mobile market overview -user concerns including privacy with mobile apps and mobile web sites -strategies to address user concerns.

1. Janet A. Jaiswal, Mobile Product Management
Joanne Furtsch, Privacy Policy Architect
TRUSTe
October 28, 2010
Bringing Confidence to Mobile
TRUSTe Mobile Privacy Certification

2. 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 TRUSTe
Joanne 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.

3. • 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

4. 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

5. 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 B
Source: Research2guidance

6. Mobile usage and mobile commerce is
experiencing tremendous growth

7. 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)

8. 15% of consumers have made purchases with a
mobile device.
-AT&T’s Sterling Commerce & Demandware, Inc

9. 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

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

11. 40% percent of global subscribers are predicted
to pay for physical and digital goods by 2014
with the mobile phone.
-Juniper Research

12. 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

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

14. Percent of cell phone users who used a map or
other service that used location data: 26 percent
-Wireless Week

15. Percent of iPhone owners who use location
services at least 1/week: 63 percent
-Mobile Marketing Association

16. Amount of money estimated to be spent by
businesses on
location-based advertising campaigns in 2015:
$1.8 Billion

17. Privacy Concerns with Mobile

18. Despite its popularity & growth there
are some concerns

19. 66% of US consumers are not comfortable with
using their mobile device for financial transactions.
– KMPG (2009)

20. 55% of Smartphone users fear loss of privacy
through mobile apps w/ geo-location services.
-Webroot (Jul. ‘10)

21. 52% of mobile users are “very or extremely
concerned” about loss of privacy from using
location-aware mobile apps.
-Poynter Online (Jul. ’10)

22. 71% of consumers look for trust seals before doing
business online.
-Yankee Group (Feb’09)

23. 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
8%
44%
69%
73%
0% 50% 100%
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
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

24. Recent privacy breaches
1 Study by Eric Smith, Asst. Director of Info. Security & Networking at Bucknell University in Lewisburg, PA, Oct 1, 2010
2 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.

25. Recent privacy breaches
1 Study by Eric Smith, Asst. Director of Info. Security & Networking at Bucknell University in Lewisburg, PA, Oct 1, 2010
2 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.

26. 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.

27. 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

28. 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

29. Mobile App and Mobile Web
Certification for Privacy

30. • 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

31. • 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

32. 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

33. 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

34. Form-Factor Optimized Dispute Resolution
CERTIFICATION
VALIDATION PAGE
DISPUTE RESOLUTION PAGE
FOR CONSUMERS TO
PROVIDE FEEDBACK

35. Client Examples

36. Client Example #1: Yelp iPhone App
SETTINGS SCREEN
CERTIFICATION
VALIDATION PAGE
PRIVACY POLICY
SUMMARY PRIVACY
POLICY PAGE –
Location Services
HOME PAGE

37. Client Example #2: Thumbspeak’s iPhone App
APP HOME SCREEN ABOUT SECTION
SHORT NOTICE
PRIVACY POLICY
CERTIFICATION
VALIDATION PAGE

38. Select mobile privacy program clients

39. 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)

40. 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

41. 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

42. • 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

43. Questions and Answers
Don’t forget to fill out the survey
Janet A. Jaiswal
Director & Mobile Product Manager
jjaiswal@truste.com
Twitter: JJaiswal_Mobile
Access Resources at
www.truste.com/mobile

44. Thank You!