Many companies experience fear, uncertainty and doubt (FUD) around the Electronic Communications and Transactions (ECT) Act, says research firm I-Forest.
I-Forest director Brad Abbott was speaking yesterday at Computer Associates` Tech Talk, which highlighted confusion around storage of documents within organisations as being a key issue.
"Companies need to understand that there is no specific law on how to store and manage important documents within the organisation," he said.
According to the law, documents can be stored electronically, as long as they are accessible and the information can be presented in the same format as it was sent and received. The information should also retain details such as its origin, destination, date and time.
According to Abbott, private corporates are free to interpret for themselves how they will store their data in order to comply with that law. The penalty for non-compliance could be either a fine or up to 24 months` imprisonment.
He noted that South African companies are confusing American laws (which are more restrictive) with local ones, because most of them are using and promoting American products and services.
"Companies fear that trying to comply with the Act is time-consuming and will result in a loss for the business," he concluded.
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