Y2K Disclosure Law starts Info Exchange

Y2K DISCLOSURE LAW STARTS INFO EXCHANGE By David M. Nadler

Now that President Clinton has signed into law the Year 2000 Information Disclosure Act, companies can begin openly sharing information on fixing the Y2K software problem. However, it is important to understand first what is and is not covered by the law.

Enacted October 19, the law is designed to promote the exchange of year 2000 information among companies, their customers, vendors and even competitors by reducing the risk of lawsuits arising from inaccurate Y2K information. The law also creates an exemption from antitrust laws for year 2000 information sharing activities.

The act provides limited protection against using year 2000 statements in litigation, but it will not reduce the underlying liability that may arise from actual year 2000-related failures.