Edelman calls out four particularly notorious sites that have or have had TRUSTe certification: Direct-Revenue.com, Funwebproducts.com, Maxmoolah.com, and Webhancer.com. All four are heavily involved with spyware. Direct Revenue and Maxmoolah have had their TRUSTe certifications revoked, but should never have been certified in the first place if TRUSTe was doing the validation they should have been doing.
TRUSTe has long been criticized by anti-spammers for giving certifications to organizations that don't deserve them.
Ryan Singel has raised similar questions about TRUSTe's reliability.