FTC ANNOUNCES EXCEPTIONS FROM ELECTRONIC SIGNATURE LAW

05/01/2002

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Article 4 Paragraph 2 of the Electronic Signature Law provides that where legislation requires a written document to be made, with the consent of the parties it may be made in the form of an electronic record if its content can be presented integrally and it remains accessible for subse-quent reference. But the FTC announced on 18 March 2002 that the following items are ex-cluded from the application of the above provi-sion, and therefore cannot be made in the form of electronic documents:

A written participation contract between a multilevel sales enterprises and a participant as required under Article 12 of the Regulations Governing Multi-Level Sales; and

The written consent of the parent or guardian of a minor to the minor's participation in mul-tilevel sales activities, as required to be ob-tained by a multilevel sales enterprise in ac-cordance with Article 16 of the same regula-tions.