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US passes electronic signature bill

OUT-LAW News, 15/06/2000

The US yesterday passed the so-called “e-sign bill” which will give electronic signatures the same legal status as traditional hand written signatures.

The bill was passed in the House by 426 votes to four and is considered likely to get quick approval from the Senate. It will then be signed by President Clinton, who said in a written statement: “It will encourage the information technology revolution that has helped lower inflation, raise productivity and spur new research and development.”

The new law aims to ease commerce for individuals and open the way for companies to supply their customers with contracts, documents and information on-line.

The Bill contains an “opt in” system where consumers must consent to receiving contracts and related information on-line. They must also show that their computer equipment is capable of receiving the information. This was a compromise between the views expressed by both consumer and business groups.

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