Americans For Fair Electronic Commerce Transactions (AFFECT)

In-Brief

The AFFECT Mission Statement:

"We are a broad based coalition of end-users and developers of computer and information technology. We support the development of high-quality computer and information technology and the growth of fair and competitive markets in technology licensing and electronic commerce. The Uniform Computer Information Transactions Act (UCITA) is anti-quality and anti-competitive and will not promote these objectives. Our mission, therefore, is to ensure that UCITA does not become law in any state."

What UCITA Is:

UCITA is a draft state law for contracts relating to software and other forms of computer information. It was drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL). NCCUSL and certain software companies are now urging state legislatures to enact UCITA.

UCITA Faces Broad Opposition:

In addition to the AFFECT members listed above, the following entities have raised serious concerns with UCITA:

The Federal Trade Commission staff
The Attorneys General of 24 states
The leading trade associations representing computer programmers, including the Institute of Electrical and Electronics Engineers (IEEE); the Association for Computing Machinery (ACM); the American Society for Quality (ASQ); the Independent Computer Consultants Association (ICCA); the Software Engineering Institute (SEI); the Free Software Foundation (FSF); and the American Committee for Interoperable Systems (ACIS)
The American Law Institute, which originally cooperated with NCCUSL on the drafting of the uniform law, terminated its sponsorship because it believed the draft to be unbalanced
Consumer groups such as the Consumer Project on Technology, the Consumer Federation of America, Consumers Union, National Consumer League and the United States Public Interest Research Group
Business groups such as the National Retail Federation have registered "grave" concerns with UCITA

The Problems With UCITA:

UCITA dramatically shifts the balance of existing contract law in favor of software vendors when they contract with businesses and consumers.
UCITA allows software vendors to shut down mission critical software remotely without court approval and without incurring liability for the foreseeable harm caused.
UCITA allows software vendors to prohibit the transfer of software from one company to another, even in the course of a merger or acquisition.
UCITA allows software vendors to avoid liability for damage caused by defects known to the software vendor, and undisclosed to the licensee, at the time the software was acquired.
UCITA binds companies to license terms in software acquired by employees without authorization.
UCITA allows software vendors to prohibit public criticism of their product.
UCITA allows software vendors to impede the development of innovative products.
UCITA allows software vendors to collect confidential information about business and consumer licensees.
UCITA binds purchasers to terms disclosed only after the purchaser pays for the software, and allows the software vendor to change the terms of the contract unilaterally by email.
UCITA allows software vendors to exercise rights over products developed with their software.

BECAUSE OF THESE AND MANY OTHER PROBLEMS, AFFECT MEMBERS HAVE COMMITTED THEMSELVES TO WORKING IN EVERY STATE TO PREVENT UCITAS ENACTMENT. WE ARE NOT AGAINST ELECTRONIC COMMERCE; WE ARE JUST AGAINST A FORM OF ELECTRONIC COMMERCE WHICH BENEFITS LICENSORS AT THE EXPENSE OF LICENSEES. WE WOULD SUPPORT AN EQUITABLE UNIFORM CONTRACT LAW FOR THE DIGITAL AGE; UNFORTUNATELY, UCITA IS NOT SUCH A LAW.

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This page was last updated: December 18, 2000