New Online Privacy Protection Tool to Transcend Borders; BBBOnLine and Japanese Privacy Seal Program Announce Plans for Joint Online Privacy Seal Venture.

Business Editors

WASHINGTON--(BUSINESS WIRE)--May 18, 2000

BBBOnLine and the Japan Information Processing Development Center (JIPDEC) today announced their agreement to enter into a joint venture.

This venture will result in the development of reciprocal online privacy seals that will be as easily recognized by consumers and businesses located in the United States as those in Japan. This is the first international effort of its kind.

The new transnational online privacy seals, which are expected to be launched this fall, would be offered as an option to businesses that had qualified for either the JIPDEC or the BBBOnLine privacy seals. It is envisioned that the reciprocal seals will prove extremely helpful to consumers in Japan and the United States and to businesses that market products in both countries.

By harmonizing the comprehensive online privacy standards of their respective programs, BBBOnLine and JIPDEC intend to allow companies certified by either organization to qualify automatically for a reciprocal online privacy seal. JIPDEC and BBBOnLine have developed two reciprocal privacy seals that incorporate design features of both the BBBOnLine privacy seal and the JIPDEC privacy mark.

(To view reciprocal seals: http://www.bbbonline.org/artwork/japan.html )

BBBOnLine and JIPDEC officials anticipate that the reciprocal seals will benefit businesses and consumers by giving Japanese seal holders doing business in the United States the advantage of BBBOnLine's recognition here and by giving BBBOnLine seal holders doing business in Japan the benefit of JIPDEC's recognition there.

"As use of the Internet increases around the world, more online businesses are discovering the opportunity to sell products and services in other countries. It will no doubt be helpful to consumers to find a trusted and well-known mark on the web site of a foreign, unfamiliar business. Moreover, the reciprocal seal option contemplated by BBBOnLine and JIPDEC is an important first step in harmonizing online privacy standards globally. We'll be providing businesses with a self-regulation tool for privacy protection that transcends borders," said Ken Hunter, president and CEO of the Council of Better Business Bureaus, parent organization of BBBOnLine.

"Electronic commerce between corporations and consumers is growing rapidly, making it critical that corporations properly protect personal information within and across borders. It is a significant occasion for BBBOnLine and JIPDEC to agree to work together to harmonize standards between two online privacy protection systems, each well known in their respective countries. It is hoped that our efforts will be a model for the development of cross-border alliances," said Hiroshi Ikawa, president of JIPDEC.

Over the next three months, JIPDEC and BBBOnLine will work out the details of the joint online privacy venture. Objectives include:

-- harmonizing the few differences that currently exist in their respective online privacy program standards;

-- harmonizing assessment and verification techniques to ensure companies meet and maintain privacy program standards;

-- assuring compatible and cooperative dispute resolution; and

-- coordinating enforcement processes to ensure no company continues to bear program seals absent continued compliance with online privacy program standards.

About BBBOnLine Privacy Program: Any business that markets to consumers located in the United States or Canada may apply for the BBBOnLine Privacy Seal, which was launched in March 1999. The program's success reaches beyond the U.S., with applications coming in from businesses based in countries around the world. To date, more than 500 websites have qualified to display the BBBOnLine Privacy Seal, ranging from small one-person businesses to huge multi-national corporations, such as AT&T, Dell, Eastman Kodak, Hewlett-Packard, MCI and Procter and Gamble. Several major children's oriented sites such as Nick.com carry the BBBOnLine Kids Privacy seal. A complete list of qualified businesses is available at http://www.bbbonline.org

About JIPDEC Privacy Program: The JIPDEC Privacy Program was started in April 1998. Any business in Japan that handles personal information may apply for the JIPDEC Privacy Mark. Certification is given to businesses that construct and adhere to the management system complying with Japanese Industrial Standard JIS Q 15001. One hundred and forty businesses have received certification, including sole business proprietorships, schools, hospitals, outsourcers, and Internet providers. A complete list of certified businesses is available at http://www.jipdec.or.jp/security/privacy/certifylist.html