The Electronic Signatures in Global and National Commerce Act, (HR-1714), which would have set the first federal standards for online authorization in interstate and international commerce, was defeated late Monday in the House of Representatives after a debate that generally followed party lines.
The legislation, sponsored by Rep. Thomas Bliley, (R-VA), was rejected by a vote of 234-122 as 77 House members abstained from voting. Bliley indicated after the vote that he may try to resurrect the measure during the second session of the 106th Congress amid indications that direct marketers, particularly those with Internet sites, would press for its passage next year.
During debate on the measure, which he introduced back in May, Bliley said the legislation would create “a federal minimum standard” for electronic signatures [while providing] consumers with greater security” for their online transactions, including purchases, loans, mortgages and securities transactions over the Internet.
Rep. Bruce Vento, (D-MN), argued that the measure “would undermine” many state and federal consumer protection laws because there would only be an electronic record of the transaction instead of something in writing.
While there was no immediate comment from the Direct Marketing Association about the bill’s defeat, the Information Technology Association of America (ITAA) said in a statement that it was “disappointed” by the vote, and urged members of Congress to reconsider the positions and pass the measure.
Meantime attempts by House and Senate conferees to resolve their differences over a bill to overhaul the financial services industry reportedly have stalled because of dispute over privacy and requiring community groups receiving money from banks to file “detailed” or “itemized” reports with the government about their travel expenses.
One of the more controversial privacy provisions in the Financial Services Modernization Act, opposed by the Direct Marketing Association, would prohibit financial institutions from disclosing encrypted bank and charge account numbers to third parties, such as list companies and telemarketers.
The DMA has been actively lobbying to have that provision modified if not eliminated all together. According to Richard A. Barton, the DMA’s senior vice president, Congressional matters, some sort of agreement has been reached but “we haven’t been able to get the final language on it.”
