By Daniel Pearson

The news release calls it a grassroots effort. The media billed it as corporate rivals putting aside their differences and working together. Internet messages boards are cluttered with opinions from consumers, who say it’s nothing more than a giant public relations move.

No matter what the point of view, 12 of the largest high-tech companies are banding banding together with TRUSTe for an unprecedented advertising blitz aimed at educating the public about online privacy standards and practices.

Companies including IBM, Microsoft, AltaVista and Intel have formed Privacy Partnership 2000. The companies will contribute more than $300,000 in online advertising space, take out full-page ads in 26 major newspapers, and begin a radio campaign. They will also direct Internet traffic to the TRUSTe Web site, where people can learn more about the initiative and TRUSTe’s seal of approval.

"Privacy Partnership 2000 is a grassroots campaign open to all," said Bob Lewin, TRUSTe's CEO and executive director. "In the coming weeks we expect hundreds, if not thousands, of Web sites to join."

The Privacy Partnership initially launched in October 1998 as an online banner advertising campaign. It quickly gained the participation of more than 1,600 Web sites in what may be the largest public service announcement campaign on the Internet.

The nonprofit TRUSTe organization was created in 1997 to help build consumer confidence and trust in the Internet. TRUSTe awards an online seal of approval -- called a trustmark -- to Web sites that adhere to established privacy principles and agree to comply with the organization’s oversight and consumer complaint resolution process.

As the Internet continues its massive growth, more and more attention is being focused on the privacy rights of Internet users. Many Web sites use "cookies" -- small data packets -- to track people’s surfing habits, and then use that information for marketing efforts.

Consumer advocacy groups and elected officials have expressed concern over how that information is used, and indeed some companies admit they sometimes sell the gathered information to other firms.

While corporate executives are trying to keep the government from regulating the use of cookies -- arguing that legislation should not be passed because the industry is doing a good job of policing itself -- the Federal Trade Commission this year launched several investigations into the actions of some well-known Internet companies.

"I don’t think it should be legislated," said Mark Delfino, vice president of customer care for Alta Vista. "It should be Internet companies leading by example."

But Scott Wills, CEO of BrightStreet.com, said research his company conducted finds consumers are very skeptical about promises online companies make regarding their privacy policies.

"Until consumers see the tools that back up these claims, they really are not going to believe online companies," Wills said.

A study completed earlier this year by Jupiter Communication agrees with Wills’ research. It found that 64 percent of Internet users don't trust Web sites to keep information regarding their browsing habits confidential, even when the site has a posted privacy policy. And because problems do occur, a link on the TRUSTe Web site allows consumers to report sites that have posted fraudulent trustmarks.

So the question becomes how these companies are going to convince consumers their intentions are sincere -- rather than a pubic relations ploy -- and how will consumers know these firms are adhering to privacy standards?

Richard Purcell, Microsoft’s director of corporate privacy, said the company's privacy buck stops with him.

"The focus of (Privacy Partnership 2000) is to provide a level of information to consumers to empower and inform them to make better decisions in regards to their privacy," Purcell said. "We believe in this program because we believe an informed marketplace will increase the level of protection...and the number of companies providing privacy protection."

Pat McGregor, Intel’s chief information security architect, said healthy skepticism is the reason these corporations came together.

"We’re attempting to educate people to have a fair amount of healthy skepticism," McGregor said. "I think there is sufficient reason to believe we want to live up to the expectations we are preaching."

TRUSTe's Lewin said all of the corporations involved in Privacy Partnership 2000 have put a lot of time and effort into the cause, and they know the only way consumers and companies can win is to do a better job guarding privacy on the Web.

"You have to remember, we’re all consumers too," Lewin said. "We want these things as individuals just like anyone else... Our mission is to make people feel more comfortable."

Daniel Pearson can be reached at:
danielpearson@mindspring.com