U.S. Chamber Praises Agreement on Digital Signatures Legislation

WASHINGTON, DC—The United States Chamber of Commerce called the agreement reached last night by Senate and House Conferees on S. 761, the Electronic Signatures in Global and National Commerce Act, "a historic step for e-commerce and the future of the American economy." The Chamber has been a leading advocate of this legislation.

"Approval of this legislation will ensure that American businesses and consumers can take advantage of the digital revolution," said Rick Lane, Chamber director of e-commerce and Internet technology. "This legislation will provide a bridge for companies doing business on the Internet until the 50 states agree on the rules for electronic transactions," he added.

"The legislation is not just important to the Dell's of the world, but to every other business, large and small, that wants to benefit from the efficiencies of electronic transactions," Lane said, praising Commerce Committee chairs Rep. Tom Bliley and Sen. Spencer Abraham, the sponsors of the legislation.

The bill promotes the use of electronic signatures and provides a consistent and predictable national framework of rules governing the use of electronic signatures. It preempts state law that is inconsistent with the Uniform Electronic Transactions Act (UETA), and provides that electronic records and notices produced in the execution of a digital contract will not be denied legal effect solely because they are electronic in nature.

In addition, it ensures that a company will be able to rely on an electronic contract and that another party will not be able to escape contractual obligations simply because the contract was entered into over the Internet or any other computer network.

Now the conference report goes back to the House and Senate, with final passage expected shortly. The White House has indicated it will sign the bill.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region.

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