E-Sign Act Compliance, Best Practices & Pitfalls

In recent years, electronic transmission of critical business documents has become increasingly prevalent. According to 2021 research by DocuSign, a provider of electronic signature services, 95% of organizations are either using or have plans to use e-signature programs to facilitate their business needs. The e-signature process provides a means for business to streamline the execution of key documents by relieving business of the need to print, send, and scan copies of those documents which would traditionally be executed by a wet ink signature. The Electronic Signatures in Global and National Commerce Act (E-Sign Act), which was signed into law on June 30, 2000, provides a general rule of validity for electronic records and signatures for transactions in or affecting interstate or foreign commerce. As of July 21, 2011, the Consumer Financial Protection Bureau regulates the legal landscape surrounding e-signature compliance.

It is imperative for those employing this technology to be vigilant to ensure compliance with all applicable statutes and regulations to ensure the enforceability of documents executed via electronic signature. This program outlines the legal landscape, and identifies potential pitfalls for businesses and others employing e-signature processes in their every-day affairs.