Under the proposed law, consumers must “opt in” for electronic records, ensuring that those without access to computers and those who prefer written forms will not be left unaware when, for example, a bank electronically serves notice that it is changing interest rates.
On 25th May, the Electronic Communications Act was passed in the UK. Although this Act does not actually provide that electronic signatures will have the same legal authority as traditional signatures, it does make provision for the legal recognition of electronic signatures, although it is expected that this part of the act will not be in force until 25th July. The Act also sets out the process under which electronic signatures may be generated, communicated or verified.
The UK legislation also gives Ministers the power to make delegated legislation to remove any restrictions in other legislation which prevent use of electronic communications in place of paper.
Marc Brailov, a spokesman for the American Electronics Association, called the US law “a vital prerequisite to the continued growth of e-commerce. It provides legal certainty for on-line business.”