The answer is yes. The "Millennium Bug" or "Y2K" problem is relatively simple to understand, but can have complex and profound ramifications that can leave many businesses subject to liability. In fact, there are already many Y2K related lawsuits pending in courts across the country and witnesses testifying before Congress have opined that the Y2K problem could lead to one of the biggest litigation waves our country has ever seen.
A class action lawsuit has been filed in California by a plaintiff alleging that its accounting software cannot recognize dates starting in the year 2000. In another suit, a Michigan retailer alleged that its computerized cash register system was unable to process credit cards which expire in or after the year 2000.
The Y2K arises because the date coding found in many information systems identifies dates using six digits, two each for the day, month and year. Thus, the system cannot distinguish between the year 1900 and 2000. Literally any device with a time processing/tracking system can be affected.
Some systems, even if affected, will lead to inconsequential results. Others, however, could have serious and extremely costly ramifications. In some instances, a system can be "fooled" into operating correctly despite its inability to distinguish between the year 1900 and the year 2000. An example of such a system would be your programming function on your VCR. A VCR can be reprogrammed to think that it is 1972. Since all of the days in 1972 and will correspond 2000 are the same, the VCR will record properly.
To reduce your chance of becoming caught in the Y2K litigation wave, you should immediately investigate the extent to which your business is Y2K compliant and, if necessary, retain a consultant to ensure that your systems are not affected. Next, even if your systems are Y2K complaint, if you want to avoid possible problems in the future and reduce the chance that your business operations being disrupted by others, it would be wise to determine whether the businesses you rely on are also Y2K compliant. Call your suppliers, review your contracts with vendors to be sure you are protected if there is a problem, and review your contracts with your customers to evaluate any potential liability you may have. Other important precautions would be to keep good records of your financial transactions, balance checkbooks regularly, save transaction slips to compare against statements and review credit reports for errors.
Remember the old adage: An ounce of prevention is worth a pound of cure.