PRIVACY-RELATED FEARS IMPACT HOLIDAY E-TAILING

TRUSTe/TNS Survey Reveals Identity Theft, Spyware and Spam Limit Online Shopping; Nearly Three of Four Online Shoppers Are More Comfortable Purchasing from Retailers with Web Privacy Certification and Privacy Policy

San Francisco, CA– October 25, 2006 – A majority of American online shoppers may limit their purchases at retail Web sites this year due to fears associated with the misuse of personal information, according to new research from TRUSTe, the leading privacy certification and seal program, and market information group TNS.

The 2006 TRUSTe/TNS Holiday Shopping Online Trust survey reveals that nearly three out of four e-shoppers are more comfortable purchasing from online retailers that display Web privacy certification or a clear privacy policy on their sites.

The survey found that 82 percent of Internet users surveyed plan to conduct some online holiday shopping, while 13 percent say they never shop online. Six percent of respondents who report having shopped online in the past have decided against doing so this holiday season due to privacy concerns. Among those who do plan to make purchases on the Web this holiday season, 63 percent say they will limit their purchasing because of concerns associated with the potential misuse of their personal information. Twenty percent of e-shoppers say that privacy-related fears may limit their online shopping "to a large extent."

The top five factors that may limit or prevent consumers surveyed from shopping online this holiday season are:

• Identity theft (cited by 44 percent)
• Credit card theft (34 percent)
• Preference for “touch and feel” of bricks-and-mortar stores (30 percent)
• Spyware (29 percent)
• Spam (28 percent)

Privacy Protections Matter
The survey reveals that online consumers take privacy protections seriously. Forty-three percent will not purchase from a Web site or give out personal information online unless the site displays a privacy statement or privacy seal.

“Online holiday shopping will continue to grow as consumers become increasingly Internet-savvy, but it’s clear that consumer trust impacts purchasing behavior,” said Fran Maier, executive director of TRUSTe. “Promotions such as free shipping may be effective in attracting new online shoppers this year, yet it’s vital for retailers to communicate their trustworthiness to consumers if they want to maximize sales.”

Among consumers surveyed who shop online, more than one in three people (35 percent) are less willing to purchase from smaller online retailers. “Sixty-nine percent of these shoppers cited concerns associated with misuse of personal information as a deterrent to purchasing from smaller retailers as compared to larger, well-known online brands,” said David Stark, North America privacy officer, TNS. “The data reveal that privacy concerns and trust issues continue to impact e-commerce growth.”

In 2005, online holiday spending totaled $30.1 billion—a 30 percent increase over 2004. With more online revenue at stake in 2006, companies must demonstrate their commitment to responsible privacy practices to potential customers.

Commissioned by TRUSTe and conducted by market research group TNS, the survey polled 1,025 U.S. consumers between September 25 and September 29. Email invitations were sent to a nationally representative sample of the U.S. adult online population derived from the TNS NFO Internet Access Panel, which comprises more than one million U.S. households that have agreed to participate in survey research from time to time. The survey results are considered accurate to within three percentage points, 19 times out of 20.

Interviews, Additional Resources Available:

• Fran Maier, executive Director, TRUSTe
• David Stark, North America privacy officer, TNS
• TRUSTe/TNS Holiday Shopping Online Trust survey results
• www.truste.org

About TRUSTe
TRUSTe helps consumers and businesses identify trustworthy online organizations through its Web Privacy and Email Privacy Seals and resolves thousands of individual privacy disputes each year. An independent, nonprofit organization celebrating its 10th anniversary in 2007, TRUSTe runs the world’s largest privacy seal program, with more than 2,000 Web sites certified, including the major internet portals and leading brands such as AOL, Microsoft, IBM, Oracle, Intuit and eBay. Through its Trusted Download Program, TRUSTe develops standards for non-intrusive downloads that demonstrate consumer choice. TRUSTe also provides accreditation, monitoring and oversight for email with the Email Privacy Seal Program, and for Return Path’s SenderScore Certified Program. To learn more, visit www.truste.org.

About TNS
TNS is a market information group:

• The world’s largest provider of custom research and analysis
• A leader in political and social polling
• A major supplier of consumer panel, media intelligence, Internet and TV and radio audience measurement services.

TNS operates across a global network in over 70 countries, allowing the firm to provide internationally consistent, up-to-the-minute and high quality information and analysis.

TNS is the sixth sense of business.

www.tns-global.com

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