The Electronic Signatures in Global and National Commerce Act (ESIGN) is the most significant piece of electronic signature legislation in the United States. It was signed into law by President Clinton on June 30, 2000. Its purpose is to give electronic contracts and electronic signatures the same legal validity as paper contracts and handwritten signatures.

Key Contents of the US ESIGN Act

1. Legal Validity of Electronic Signatures and Contracts

Equivalency of Electronic Signatures with Paper Signatures: As long as they meet the requirements of ESIGN, electronic signatures and electronic records have the same legal validity as traditional signatures and paper documents. Their legal validity cannot be denied simply because they are in electronic form. This means that contracts signed with electronic signatures are as valid and admissible in court as handwritten signatures.

2. Consumer Protection

In contracts with consumers, prior consent must be obtained before electronic documents can be used in lieu of paper documents. Consumers must be informed of their right to choose paper documents and, if electronic documents are chosen, how to access, save, and print them. Consumers must also explicitly consent to the use of electronic signatures/electronic documents. Prevent companies like banks and insurance companies from forcing users to use only electronic signatures.

3. Record Preservation

Documents signed electronically must be permanently preserved, fully readable, and retrievable. Companies are obligated to ensure the security and integrity of electronic records. This means that electronic contracts must be accessible at any time, just like paper contracts, and must not be lost or damaged.

4. Technology Neutrality

The bill does not require the use of any specific technology (such as a specific encryption algorithm or device). As long as the technology can ensure the authenticity and integrity of signatures and documents, it is acceptable. This provides flexibility for businesses and technology vendors, preventing the law from becoming outdated due to technological developments.

5. Exceptions

ESIGN is not applicable to all signing situations. Some of its inappropriate applications include particularly sensitive matters, such as wills, inheritances, divorces, adoptions, and other family law documents; court orders or formal legal documents; and certain notifications related to health or hazardous materials transportation. In these cases, paper signatures are still required to avoid legal disputes.