Bill to have impact on many businesses



The Electronic Communications and Transactions Bill 2002 (The Bill) was approved by the select committee of the National Council Provinces and once enacted it will have a significant impact on businesses, not just those directly involved in the industry, according to an article in the Shepstone & Wylie Commercial Department Flyer dated August 2002. The Bill, marks a significant development in the South Africa law of contract by facilitating electronic communications in the business environment and officially recognising electronic transactions, SMS's, signatures and advanced electronic signatures (a secure from of electronic signing) that affords legal effect to communication, information, documentation and records in an electronic format. Of particular importance to businesses is a provision permitting the use of an electronic means of storing statutorily-required records, prescribed by various acts, including the Promotion of Access to Information Act. Electronic data will therefore, subject to certain conditions, be permitted to be retained for statutory record retention purposes and will be regarded as being in writing and as a true copy of an original record. Identification and authentication of parties to an electronic transaction remain a challenge and pose threats to both consumers and businesses. The Bill seeks to provide for the establishment of an Accreditation Authority within the Department of Communications, following voluntary accreditation of electronic signature technologies in accordance with minimum standards. Once accredited, these advanced electronic signatures will allow a party to rely on their authenticity. Consequently an individual using a non-accredited electronic signature may well find their electronic transaction invalid. Furthermore foreign individuals or businesses will need SA accreditation before their electronic signatures are accepted and valid. Article: 30 August 2002 The Property Professional On-line - Edition 51 RodneyHayter email: hayter@icon.co.za