“New” Obligation for Businesses

September 1, 2006.

By Sánchez-DeVanny Eseverri

All businesses that make use of data messages whether individuals or entities, (information, sent, received, filed or generated by electronic, optic or of any another media technology) are required to conserve the data messages that reflect contracts, agreements and/or commitments that give birth to rights and obligations, including those entered through web pages or e-mails. The record retention obligation extends for a 10-year term.

The Mexican Official Standard “NOM-151-SCFI-2002, Commercial Practices-Requirements that should be observed for the conservation of data messages” published in 2002, requires that complex technologies, software and specific languages so that the business people comply with the obligation to conserve the data messages that reflect contracts, agreements and/or commitments that give birth to rights and obligations. NOM 151’s complexity impeded its practical implementation, deferring its entry into force as of February 2006, the application of NOM-151-SCFI-2002 is mandatory. The good news is that the rules of the implementation of NOM-151 facilitate its implementation basically stating that any technology that guarantees the conservation and integrity of the information contained in data messages can be used by businesses to archive such information.

Now it is time to verify if your systems comply with NOM-151. Businesses must take advantage of the opportunity to verify that the investment in technology as well as the efficiencies and savings that have been achieved with implementation of ERP’s to fulfill the applicable legal dispositions. Are you sure that your systems fulfill the requirements for data conservation and integrity to safeguard the legal standings of your business in the event of litigation? Failure to comply with such requirements means that your data messages will have no validity as evidence, leaving you and your business naked in today’s e-technology world. Are you ready to take such risk?

For more information on the subject, please visit Sánchez-DeVanny Eseverri, online.