Legislators push digital signature approval
By Bloomberg News
Special to CNET News.com
May 6, 1999, 3:25 p.m. PT
WASHINGTON--U.S. lawmakers introduced legislation designed to promote online commerce by giving electronic signatures the same legal validity as hand-written ones.
Companies such as America Online and Microsoft claim the measure would make it easier to verify identities of buyers and sellers on the Internet. Charles Schwab also supports the bill introduced in the House of Representatives today, claiming it will facilitate stock purchases on the Web.
The Commerce Department projects that retailing on the Internet could reach $30 billion by next year, though officials have said privacy protection and security concerns could hamper that growth. Some states have different laws regarding so-called digital signatures, and a national set of rules will encourage their use, proponents say.
"This bill will help promote electronic commerce by giving consumers and businesses greater confidence and peace of mind about their online transactions," said House Commerce Committee chairman Tom Bliley (R-Virginia), one of the bill's cosponsors.
The Senate is considering a similar measure. Last year, Congress approved a measure that required federal agencies to start using digital signatures for online transactions.
"Providing legal certainty to electronic signatures and records will encourage the acceptance and use of electronic authentication," AOL general counsel George Vradenburg wrote in a letter to Bliley dated today.
The new bill doesn't advocate any specific digital-signature technology, though it's likely to benefit companies such as VeriSign, which makes software that helps provide secure transactions on the Internet. The House measure would allow digital signatures to be used to verify any contract or agreement for "interstate or foreign commerce."
The bill also requires Commerce to examine rules on digital signatures in other countries and to promote their acceptance worldwide.
Other sponsors of the bill include Reps. Mike Oxley (R-Ohio), Billy Tauzin (R-Louisiana), and Tom Davis (R-Virginia).
Copyright 1999, Bloomberg L.P. All Rights Reserved.
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