[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