[Federal Register Volume 66, Number 42 (Friday, March 2, 2001)]
[Notices]
[Pages 13048-13050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5053]


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DEPARTMENT OF COMMERCE

National Telecommunications and Information Administration

[Docket No. 010222048-1048-01]
RIN 0660-XX11


Notice, Request or Comments on Section 105(a) of the Electronic 
Signatures in Global and National Commerce Act

AGENCY: National Telecommunications and Information Administration, 
U.S. Department of Commerce.

ACTION: Request for comments on the Section 105(a) of the Electronic 
Signatures in Global and National Commerce Act.

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SUMMARY: The National Telecommunications and Information Administration 
(NTIA) invites interested parties to review and comment on section 
105(a) of the Electronic Signatures in Global and National Commerce Act 
(``ESIGN'' or ``the Act'') (Pub. L. 106-229, 114 Stat. 464). Section 
105(a) requires the Secretary of Commerce to conduct an inquiry and 
report to Congress on the effectiveness of delivery of electronic 
records to consumers using electronic mail as compared with the 
delivery of written records via the United States Postal Service and 
private express mail services. In connection with this report, this 
Federal Register notice is intended to solicit comments from interested 
parties. NTIA invites the public to submit comments on section 105(a) 
of the ESIGN Act in paper or electronic form. All comments submitted in 
response to this Notice will be posted on the NTIA website.

DATES: Interested parties are invited to submit comments no later than 
April 2, 2001.

ADDRESSES: Comments may be mailed to Josephine Scarlett, Office of the 
Chief Counsel, National Telecommunications and Information 
Administration, Room 4713 HCHB, 1401 Constitution Ave., NW, Washington, 
DC 20230. Paper submissions should include a diskette in ASCII, 
WordPerfect (please specify version) or Microsoft Word (please specify 
version) format. Diskettes should be labeled with the name and 
organizational affiliation of the filer, and the name version of the 
word processing program used to create the document.
    In the alternative, comments may be submitted electronically to the 
following electronic mail address: [email protected]>. Comments 
submitted via electronic mail should be submitted in one or more of the 
formats specified above.

FOR FURTHER INFORMATION CONTACT: Josephine Scarlett, Office of the 
Chief Counsel, telephone: (202) 482-1816; or electronic mail: 
[email protected]>. Media inquiries should be directed to the 
Office of Public Affairs, National Telecommunications and Information 
Administration, at (202) 482-7002.

SUPPLEMENTARY INFORMATION:

I. Background

    Advances in information technology and increased Internet usage in 
domestic and international business transactions have produced 
significant benefits to U.S. businesses and consumers. Electronic 
commerce or ``e-commerce'' has contributed significantly to the growth 
of the U.S. economy in recent years. Census Bureau statistics show that 
total retail e-commerce sales for 2000 reached an estimated $25.8 
billion, and accounted for .08 percent of the total retail sales. 
Although commercial transactions over the Internet have increased over 
previous years, one of the greatest burdens to the growth of Internet 
commerce has been the lack of consistent, national rules that govern 
the use of electronic documents and signatures in electronic business 
transactions.
    In order to promote continued growth in electronic commerce, 
Congress enacted ESIGN on June 30, 2000. ESIGN facilitates the use of 
electronic documents in domestic and international commerce and 
reinforces the validity and enforceability of electronic contracts and 
signatures. The Act gives businesses the option of transmitting 
electronic copies of documents that are legally required to be provided 
to consumers in written form, and provides consumers with the option of 
receiving electronic copies of these documents. ESIGN does not apply, 
however, to all documents and notices that are required to be presented 
in writing.\1\
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    \1\ Section 103 of ESIGN provides exceptions for testamentary 
and domestic relations documents, court orders, notices of 
cancellation for utility services and health benefits, housing or 
rental foreclosure and default notices, and product safety and 
hazardous material notices. ESIGN does not affect state or federal 
laws that require a writing for these types of documents and 
notices.

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[[Page 13049]]

    Section 105(a) of ESIGN directs the Secretary of Commerce to 
prepare a study comparing the effectiveness of electronic mail in the 
delivery of electronic records with the effectiveness of traditional 
methods of document delivery (e.g. mail, express delivery services), 
and to report the findings of the study to Congress no later than June 
30, 2001. NTIA invites interested parties to submit comments on the 
general issue of the effectiveness of electronic mail in the delivery 
of electronic documents in comparison to the traditional methods of 
document delivery and on the specific issues set out in this Notice.
    NTIA recently sought public comment on a joint study conducted with 
the Federal Trade Commission on section 105(b) of the ESIGN Act.\2\ The 
joint study being conducted under section 105(b) concerns the consumer 
consent provisions of the ESIGN Act and is separate from the study 
being prepared for this Notice. Comments submitted in this proceeding 
may be used in preparation of the report to Congress regarding the 
consumer consent provisions of the Act under section 105(b). Parties 
should note or incorporate by reference any comment that was submitted 
in conjunction with the joint study under 105(b) that also should be 
considered in this study.
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    \2\ See Request for Comment and Notice of Public Workshop: 
Electronic Signatures in Global and National Commerce Act, 66 FR 
10011 (Feb. 13, 2001). The notice and comments received concerning 
the joint study are also available on NTIA's homepage at http://www.ntia.doc.gov>.
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II. Statutory Language Requiring a Report to Congress

    The statutory language requiring the Secretary of Commerce to 
submit a report to Congress on the effectiveness of electronic mail is 
found in section 105(a) of ESIGN and is set forth below.
Sec. 105. STUDIES.
    (a) DELIVERY.--Within 12 months after the date of the enactment of 
this Act, the Secretary of Commerce shall conduct an inquiry regarding 
the effectiveness of the delivery of electronic records to consumers 
using electronic mail as compared with delivery of written records via 
the United States Postal Service and private express mail services. The 
Secretary shall submit a report to the Congress regarding results of 
such inquiry by the conclusion of such 12-month period.

III. Specific Questions

    The Department seeks comment on the following specific questions. 
Parties need not address all questions, but are encouraged to respond 
to those about which they have particular knowledge or information.

1. General Issues

    a. Provide an estimate of the percentage of transactions that you 
conduct per month that require next day, or same day, delivery.
    b. Of the transactions included in 1(a) above, approximately what 
percentage of these are complicated by the fact that mail services do 
not have Sunday delivery?
    c. Describe any delivery problems that you experience with 
electronic transmissions. How do these problems compare with any 
problems you experience using the Postal Service, private express, or 
courier services for delivery of records?

2. Business Issues

    a. Do you offer consumers a choice of delivery mechanisms (i.e. 
electronic or traditional)? Has the market evolved enough to give 
consumers the choices they need? State whether you conduct a mail or 
express delivery service, or an electronic mail business.
    b. Explain any benefits to your business of providing consumers 
with a choice between electronic transmission, postal service, or 
express mail service delivery of documents. Is cost a large factor in 
your decision to offer more than one method of delivery?
    c. How important is the elimination of paper to your business?
    d. Does your software enable your company or business to accurately 
keep track of customer confirmations and electronically ``file'' 
correspondence and consents received from customers?
    e. What method(s), if any, do you employ for sender/signature 
verification for electronic transactions?
    f. What types of consent mechanisms does your business employ?
    g. What methods do you employ for third parties who are 
authenticating electronic delivery?
    h. Under what circumstances will information received from a 
customer be shared?
    i. Do you provide universal service (i.e. delivery to all 
geographic locations)?
    (i) Please estimate the percentage of the population that your 
business serves that receives daily deliveries, as opposed to 
deliveries every few days (e.g. to areas less populated). Estimate the 
number of those who receive deliveries every few days that also use 
your electronic services, if available, for faster delivery.
    (ii) What percentage of your electronic customers are small 
businesses, what percentage are large businesses, and what percentage 
are individuals?

3. Consumer Issues

    a. Do you have access to the necessary tools to enable you to 
receive documents electronically?
    b. If you have the option of receiving electronic records but 
choose not to, is this decision related to a lack of technology to 
conduct business in this manner?
    c. Describe any burdens that you as a consumer experience, or 
expect to experience, in receiving electronic records (such as the 
inability to open, store, or print electronic records).
    d. Compare the usefulness and burdens of receiving an electronic 
record, and confirming receipt electronically, with the usefulness and 
burdens of receiving a written record.
    e. Describe how the existence of electronic records affects the 
convenience of record-keeping, both negatively and positively.
    f. How concerned are you with online privacy and security issues? 
Describe any specific issues you have encountered (e.g. viruses).
    g. Describe any concerns you have with keeping paper documents 
confidential during their transmission or storage. Are the same 
concerns present for electronic documents received through electronic 
mail? If so, state whether you are more concerned with preserving the 
confidentiality of paper documents or electronic documents.
    h. Are electronic transactions complicated by the fact that the 
consumer must notify a business when the consumer's e-mail address 
changes? If so, how significantly?
    i. Do electronic transactions increase or decrease the potential 
for fraud or identity theft?

4. Technology Issues

    a. What are the estimated costs, either to businesses or consumers, 
of updating software to ensure compatibility for the electronic 
transmission of electronic records?
    b. What types of technology are being employed to ensure security 
of transmissions? For example, does your business utilize smart cards, 
encryption, or password protection devices? Are these devices 
effective?
    c. Are anonymizer-type programs effective in protecting online 
privacy? Do such programs render authentication ineffective?
    d. Does your business use/provide biometrics?
    e. Does your business provide consumers with technical support in 
the

[[Page 13050]]

event that consumers encounter difficulties in making electronic 
transmissions?

Kathy D. Smith,
Chief Counsel.
[FR Doc. 01-5053 Filed 3-1-01; 8:45 am]
BILLING CODE 3510-60-P