On October 19, 1998 President Clinton signed the "Year 2000 Information and Readiness Disclosure Act" into law. This Act, also called the Year 2000 "Good Samaritan" law, encourages the continued dissemination of Year 2000 ("Y2K") readiness information by limiting the liability associated with disclosure of Y2K issues. Among other things, the Act provides for:
- protection for vendors and consultants from liability resulting from statements and/or disclosures concerning the Y2K problem, unless such statement/disclosure was material and was released with recklessness or intent to deceive, §4(b);
- the inadmissability of certain Y2K readiness disclosures (including Y2K disclosures made via an Internet Web site) to prove the truth of the "accuracy or truth of the statement itself" in most state or civil actions pending between July 14, 1998 and July 14, 2001 (except with regard to anticipatory breach, repudiation and similar claims), §4(a);
- the heightening of the burden of proof for Y2K fraud claims to a "clear and convincing" criminal evidence standard, §4(b);
- a bar on defamation, trade disparagement or similar claims based on allegedly false, inaccurate or misleading Y2K disclosures/statements, unless such disclosures/ statements were made with false or reckless disregard for the truth, §4(c);
- a temporary antitrust exemption for the sharing of Y2K information among businesses working together to correct or avoid Y2K problems between October 19, 1998 and July 14, 2001 (but not applying to conduct concerning agreements to boycott any person, to allocate a market or fix prices and/or output), §5;
- the creation of a 45-day "grace period" in which businesses may seek protection for Y2K disclosures/statements made between January 1, 1996 and October 19, 1998 by designating such disclosures/statements as "Year 2000 Readiness Disclosures" in compliance with certain criteria (including individual notice requirements) before the December 3, 1998 deadline, §7(b);
- special protections for Y2K information voluntarily transmitted to federal agencies, §4(f)(4)(B); and
- the designation of the General Services Administration as the central government Web site for the dissemination of Y2K information until July 14, 2002, §9(a).
The Act distinguishes between Y2K "readiness disclosures" (which receive the added protection of being excluded from evidence) and mere "statements" concerning Y2K. Under the Act, a "readiness disclosure" is defined as a written Year 2000 statement, clearly identified as a "readiness disclosure," inscribed on a tangible medium or stored in an electronic or other medium and retrievable in perceivable form, issued or published by or with the approval of an entity with respect to the Year 2000 processing of that entity or of products or services offered by that entity. §3(11).
While the Act does not go so far as to provide a damages cap for Y2K failures, limit liability for the Y2K failures themselves, or apply to consumer transactions, it is the first step in addressing the potential explosion of Y2K-related litigation.