The ESIGN Act Explained

The ESIGN Act, short for the Electronic Signatures in Global and National Commerce Act, is a US federal law enacted in 2000 that gives electronic signatures and records the same legal effect as paper in interstate and foreign commerce. It also sets consumer consent rules for delivering legally required disclosures electronically and requirements for retaining electronic records.

Key facts about the ESIGN Act

The statute is available at Cornell Law School’s LII.

What the ESIGN Act does

1. General validity. A signature, contract or other record relating to a transaction may not be denied legal effect, validity or enforceability solely because it is in electronic form. A contract may not be denied legal effect solely because an electronic signature or record was used in its formation.

2. No obligation to use electronic records. ESIGN does not require anyone to use or accept electronic records or signatures, except certain government agencies in specific contexts.

3. Consumer consent. When a law requires information to be provided to a consumer in writing, electronic delivery satisfies that requirement only if specific consent and disclosure steps are followed.

4. Record retention. When a law requires a record to be retained, an electronic record can satisfy the requirement if it accurately reflects the information and remains accessible for the required period in a form that can be accurately reproduced.

ESIGN consumer consent requirements

Before providing legally required consumer disclosures electronically, the business must, in summary:

1. Obtain the consumer’s affirmative consent.
2. Provide a clear statement, before consent, of the right to receive records on paper, the right to withdraw consent and any consequences or fees.
3. Explain whether consent covers a single transaction or categories of records.
4. Describe how to withdraw consent and update contact information.
5. Explain how to request a paper copy and whether there is a fee.
6. Disclose the hardware and software requirements to access and retain the records.
7. Obtain consent electronically in a way that reasonably demonstrates the consumer can access the information.
8. Provide updated disclosures if hardware or software requirements change in a way that creates a material risk the consumer cannot access records.

These rules apply to legally required consumer disclosures, not to every business-to-business contract.

What ESIGN does not cover

ESIGN excludes certain records, including wills and testamentary trusts, family law matters, many court documents and certain notices such as utility service termination, foreclosure or eviction for a primary residence, insurance benefit cancellations and product recalls. See documents that cannot be signed electronically.

ESIGN and UETA

ESIGN generally allows states that adopt UETA, or alternative procedures consistent with ESIGN, to govern electronic transactions within their borders. In practice, businesses rely on both: ESIGN at the federal level and their state’s UETA or equivalent law.

What ESIGN means for businesses

• You can sign most contracts electronically.
• Keep reliable electronic records with audit trails.
• Follow consumer consent rules when delivering required consumer disclosures electronically.
• Know the exceptions and use paper or special processes where required.

How Noca helps

Noca collects legally binding e-signatures with audit trails and stores signed records securely, as part of complete workflows with forms, document generation and integrations. Learn more about Noca e-signature.

This article is for general information and is not legal advice.

Related guides

• Are Electronic Signatures Legally Binding in the US?
• Consent Form Template

Frequently Asked Questions

What is the ESIGN Act?

The ESIGN Act is a US federal law enacted in 2000 that gives electronic signatures, contracts and records the same legal effect as paper in interstate and foreign commerce. It also sets rules for consumer consent to electronic disclosures and for retaining electronic records.

When was the ESIGN Act passed?

The Electronic Signatures in Global and National Commerce Act was signed into law on June 30, 2000. It is codified at 15 U.S.C. § 7001 and following sections and took effect later in 2000, with some provisions phased in.

What is ESIGN consent?

ESIGN consent refers to the process required before businesses deliver legally required consumer disclosures electronically. Consumers must receive certain disclosures, including their right to paper records and how to withdraw consent, and must affirmatively consent in a way that shows they can access the electronic records.

Does the ESIGN Act apply to business-to-business contracts?

Yes. ESIGN’s general rule that electronic signatures and records cannot be denied legal effect applies to transactions in interstate and foreign commerce, including business-to-business contracts. The consumer consent requirements apply specifically to consumer disclosures required by law.

Does ESIGN require a specific technology?

No. ESIGN is technology neutral. It does not require any particular type of electronic signature, such as digital certificates. An electronic signature can be a typed name, a drawn signature or a click, as long as it is adopted with intent to sign.

What is the difference between ESIGN and UETA?

ESIGN is a federal law that applies to interstate and foreign commerce. UETA is a model law that states adopt for transactions governed by state law. Both provide that electronic signatures and records have legal effect, and they work together in practice.