I can't help but feel that this is a weakening of ZK's position regarding privacy. The critical paragraph is:
Zero-Knowledge is committed to deploying systems that are transparent and accountable. In keeping with this policy, MPS will incorporate third party verification and split encryption key structures, as well as provide consumers with access to white papers, independent auditors' reports or other materials that assure a company is doing what it claims. With MPS Zero-Knowledge strengthens its commitment to building responsible systems that empower consumers to control the disclosure and use of their personal information, while still enabling businesses to thrive in a data and relationship-driven marketplace.
I don't want to be 'assured that a company is doing what it claims' (with my personal information). Companies change policies at whim. What a firm's founder may fervently believe could become a curio of corporate history after the next board meeting. Look at Amazon's recent policy change, for example. Also, data in the possession of a corporation and me is always less secure than information possessed only by me. Instead of being assured that the company is acting in accordance with their stated policy du jour (or at least, their lawyers' spin on it), I want to know that they CAN'T abuse my personal data, because the don't have any. That is the confidence which ZK's original scheme was intended to produce, and which the introduction of this plan seems to seems to suggest is no longer considered a high priority at ZKS. It may be that the ZK's product 'Freedom' is proving a financial bust (I won't use it until I can buy nyms for cash at CompUSA). I understand the drive to meet payroll and pay off VCs, but I can't help but be saddened. I understand that some transactions require more state than "Here's an order, some money, and a shipping address", but in a great many cases, corporations by policy ask far more than this. The most egregious example I've seen is a cheap travel site which, when you register, suggests that you tell them your 'favorite internet password' as a key to get get back to your account. I hope that ZKS's new service doesn't simply "culminate in the deployment of a tailored privacy layer that integrates seamlessly with the client's existing enterprise applications".... but rather looks at their business and informs them of the absolute minimum of data they need to acquire, and how long to keep that data, if they need to keep it at all. I don't want to rely on a 'privacy layer' under the control of an entity which will profit from silently circumventing it, or be subject to leaks and third party seizures of data. Peter Trei Disclaimer: The above represents my personal opinions only.