certification

This page considers certification mechanisms and challenges, in particular the use of online trustmarks (aka webseals).

Certification is typically provided by industry associations or by commercial bodies that may -

• set formal standards for business practice or articulate a broader code of practice
• monitor adherence to those standards or codes
• certify that the activity of organisations is consistent with the particular standard or code and therefore entitles them s to use a 'trust mark' (aka a seal), thus offering a frame of reference for consumers
• even offer an ombudsman scheme (aka ADR scheme) for dealing with disputes. 

Better Business Bureau Online (BBBO), the website of the US Better Business Bureau (a commercial body), provides information about the BBB's Reliability and Privacy seals. It is believed to cover around 10,000 sites.

In November 2000 it unveiled the BBB Code of Online Business Practice, based on principles of "truthful and accurate communications, disclosure, information practices and security, customer satisfaction, and protecting children". 

Critics were quick to comment that resounding declarations of principle are one thing, day to day implementation by etailers and enforcement by the BBB is another.

Its major rivals are TRUSTe - a body supported by IBM, Microsoft and the Electronic Frontier Foundation (EFF) - and VeriSign.  

TRUSTe has faced considerable criticism. Although its motto is "Building A Web You Can Believe In" consumer trust was not encouraged when it savaged Microsoft with a wet lettuce after privacy breaches and its failure to do much when Disney-backed etailer Toysmart crashed back to earth and began trying to market its clickstream database. It is believed to cover around 2,000 sites. An example of criticisms is Natalie Regoli's 2002 Federal Communications Law Journal paper Indecent Exposures in an Electronic Regime (PDF).

BizRate, WebGuardian , WebWatchdog and Public Eye are US commercial bodies running merchant rating services. Netcheck Commerce Bureau (Netcheck) provides complaint and dispute resolution services in the US.

The Better Cyber Bureau (BCB), again US-based, promotes ethical business standards through the BCB Seal.

The Better Internet Bureau Association (BIBA) offers quality assurance services.

The US Electronic Commerce & Consumer Protection Group (E-Commerce Group) - noted earlier in this guide - includes America Online, AT&T, Dell, IBM, Microsoft, Network Solutions, and AOL Time Warner. 

The nature of those codes varies considerably - most cover matters such as privacy and the handling of online financial transactions. Their enforcement is uncertain, with TRUSTe for example recently facing criticism over its response to privacy breaches by the RealNetworks online music company and the CDT's July 1999 report Behind the Numbers: Privacy Practices on the Web highlighting problems with self-regulation. Early in 2000 Comet Systems, with 60,000 clients, faced class-action litigation after alleged undisclosed tracking of millions of consumers. We've highlighted more recent developments in Analysphere.

However, if you're buying online from a vendor that you don't know, the seal gives you some indication of reliability and some scope for redress if things go wrong.

     local industry representatives

Australian certification schemes appear to have been ineffective, due to lack of resources for marketing and compliance and to poor consumer awareness.

The Institute of Chartered Accountants licenses members under the global WebTrust program. 

The Internet Industry Association (IIA) is initiating a privacy practices seals program for members.

     trust

We've explored questions about trust and credibility later in this guide, highlighting empirical studies and regulatory activity.

     privacy

There's a more detailed examination of privacy statements and seals in our Privacy guide, supplemented by an analysis of trustmarks.






    next page  (trouble spots)