PHILADELPHIA -- President Clinton on Friday signed into law a bill that makes electronic signatures as valid as their ink counterparts.
On the grounds where the Declaration of Independence was signed with a quill pen, Clinton used a more modern way of signing the "Digital Signature" bill -- a smart card encoded with numbers.
The bill, officially known as the Electronic Signatures in Global and National Commerce Act, gives electronic signatures and documents the same force in law as those done with ink on paper.
The act eliminates legal barriers to using electronic technology to form and sign contracts, collect and store documents and send and receive notices and disclosures.
"Under this landmark legislation on-line contracts will now have the same legal force as equivalent paper contracts," Clinton said.
New era of commerce
In an effort to boost and broaden e-commerce, the law will allow consumers and businesses to sign checks, complete applications for loans or services without need for a paper signature.
The digital signature legislation, which was approved by the House of Representatives and the Senate by overwhelming margins earlier in June, is seen as paving the way for a new era of electronic commerce in which companies could complete transactions online instead of in person.
The measure, similar to laws already approved in dozens of states, requires that consumers consent to doing business on line and that they are assured consumer protections equivalent to those in the paper world.
It also ensures that government agencies have the authority to enforce the laws, protect the public interest and carry out their missions in the electronic world, the White House said in a statement.
A boost to e-commerce
Under the legislation, no contract, signature or record can be denied legal effect solely because it is in electronic form.
Proponents of the legislation say the measure will cut costs while bolstering confidence among consumers who have concerns about security and protection when using the Internet to conduct business.
The White House said the legislation should help boost e-commerce. It will save time and space and once the law goes into effect companies will be able to contract online to buy and sell products worth millions of dollars, the White House said.
Consumers will still be able to decide whether they want to use an electronic or handwritten signature but the bill requires some documents to still be sent on paper.
Clinton will talk about the digital signature bill in an Internet address to the nation on Saturday.
