The bill would give electronic signatures the same legal recognition as handwritten signatures in transactions conducted between consumers and commercial enterprises. This measure had received support from the Administration, the Federal Trade Commission and members on both sides of the aisle, but its passage was delayed to procedural hurdles regarding 'non-germane' amendments. Hearings were held in that committee in late September. It is ITAA's hope that the differences between the two bills can be reconciled in an eventual conference, and that a national legal framework can be applied to electronic records, contracts entered into online, and to signatures attached to electronic documents. Strict U.S. export controls on encryption software are costing U.S. companies market share for encryption and related products and services every day.
Many foreign competitors have no such restrictions.
ITAA supported legislation introduced in both the House and Senate that would relax export controls on encryption software and fought strongly against suggestions of imposing new domestic restrictions. In September, the White House announced its intention to allow the export of mass market software products with strong encryption after a one-time technical review. Implementing regulations are due in December, 1999. With the Internet Tax Freedom Act signed into law and a moratorium on Internet taxes in place, attention has shifted to the federal and international organizations charged with harmonizing e-tax policy. ITAA has been actively engaged with the Advisory Commission on Electronic Commerce, the group established by Congress to make recommendations on federal, state, local and international tax policy.