Senate yesterday took note of new Internet standards aimed at clamping down on dodgy transactions in Bermudian cyberspace.

Government Senator Michael Scott said the Standard for Electronic Transactions (Code of Conduct), which went into effect last Monday, was "another milestone'' demonstrating the Progressive Labour Party's commitment to making Bermuda a premier e-commerce jurisdiction.

"We are drawing a line in the sand here,'' Sen. Scott continued. "It was only last June when the United States put legislation through recognising electronic signatures. Our Electronic Transactions Act went through in 1999.

The standards require that Internet service providers know their customers to avoid potential for assisting illegality.

Businesses must also "know their own business'' -- to protect firms from accidentally breaking the law on electronic records or information.

And the standards also contain rules for fair advertising and treatment of customers.

Sen. Scott said: "This initiative is not a volatile thing. It has the force of law and the teeth to back it up.'' He said Telecommunications Minister Renee Webb would have a "sublime'' involvement in upholding the standards.

"A first breach of them will be met with a letter of warning from the Minister. If it continues however, she can recommend prosecution and those responsible could be fined a maximum of $5,000.'' "We think that hitting them in the pocket book is the most effective way of ensuring compliance.'' Opposition United Bermuda Party Senator Mark Pettingill welcomed the new standard but added: "If anything, it is too late in coming.

"We would have wanted to see it in place quite some time ago. The industry has heated up and there is an international perception that our standards here have slipped,'' he said "The standard is very important, but it's not timely, as Sen. Scott said it was,'' Sen. Pettingill continued. "This is an industry-driven area and, if anything, it looks like the Government is trying to play catch up.'' He said the standard would probably have to be changed in the future anyway, to keep up with the account for the "nebulous'' nature of the telecommunications industry.

Government Senate Leader Milton Scott emphasised the importance the electronic transaction had on education and applauded Ms Webb for drafting the standard.

He added: "The challenges we will face will go beyond our expectations and Government has done this to set up a base.'' Sen. Scott criticised Sen. Pettingill for perpetuating "a lot of doom and gloom'', saying that, if Government had come up with the standard a few years ago, it would be obsolete now due to the transitional nature of the business.