Local business people yesterday witnessed the unveiling of the latest developments in the legislative framework for governing electronic transactions.

Minister for Telecommunications and E-Commerce Renee Webb presented what is expected to be the final -- and ninth -- draft of the Standard for Electronic Transactions at a breakfast meeting at the Fairmont Hamilton Princess.

"The Standard is to protect the reputation of Bermuda as an international business and financial centre,'' said Ms Webb.

"It applies to Internet Service Providers and E-Commerce service providers.'' Barring minor changes -- businessmen have one week from yesterday to make any further suggestions to the Ministry -- the code of conduct will come into effect in its present form on May 1 of this year.

Local e-commerce practitioners have already been consulted throughout the process of creating the Standard which will run alongside the Electronic Transactions Act (see side bar) which became law last year..

Ms Webb said: "Under Section 29 of the Act, e-commerce business connected with Bermuda should conduct themselves as to preserve the good name of Bermuda.'' And with the controls set out throughout the Act, and other legislation governing e-commerce business, "it is the desire of the industry to conduct themselves, and to the best of their ability see that their customers conduct themselves, with regard to both the spirit and the letters of the Acts,'' said Ms Webb.

This other legislation includes the Criminal Code Act 1907, the Proceeds of Crime Act 1997, the Human Rights Act 1981 and the Obscene Publications Act 1973.

Minimum standards in the code are: observe business integrity and do not conduct illegal activity; know your customer and do not aid or abet illegal activities; know your own business and do not render illegal services; protect personal data to respect privacy, accuracy and security of this information; avoid abusive usage and not send unsolicited bulk e-mails, seek unauthorised access to other people's systems or seek to interrupt their use of electronic communications; Webb sets out controls for electronic transactions advertise truthfully so as not to mislead customers in respect of your business' services; deal fairly and openly with customers; and settle complaints and disputes quickly and fairly.

Further business procedures also need to be observed through the Standard. The draft of the Standard notes: "Intermediaries and e-commerce service providers shall make every reasonable effort to introduce and maintain systems, procedures and practices which achieve material realisation of this Standard.

"Where an intermediary or an e-commerce service provider has actual knowledge of any matter or conduct which falls below the standard required by this Standard, the intermediary or e-commerce service provider must take action forthwith to remedy or terminate the matters or relationship giving rise to the non-compliance with this Standard,'' it continued.

If the e-commerce service provider or intermediary is in doubt there is provision to apply to the Minister for direction under the Act. And any time there is non-compliance with any part of the code, the Minister can give warnings, require compliance or recommend that prosecutions be implemented.

Companies will be in compliance with the Standard if their systems, procedures and practices are mainly in line with a series of "safe harbour'' guidelines, said Ms Webb. These include: maintaining effective monitoring systems; establishing effective contracts; instituting effective "know your customer'' practices; establishing systems to protect privacy; establishing practices to avoid abusive usage; establishing complaints and disputes systems; establishing transparent business practices; and establishing systems to avoid misleading statements or omissions.

Renee Webb