ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL …

1 PUBLIC LAW 106 229 JUNE 30, 2000 ELECTRONIC SIGNATURES IN GLOBAL ANDNATIONAL COMMERCE ACTVerDate 11-MAY-2000 14:52 Jul 05, 2000 Jkt 079139 PO 00229 Frm 00001 Fmt 6579 Sfmt 6579 E:\PUBLAW\ APPS10 PsN: PUBL229114 STAT. 464 PUBLIC LAW 106 229 JUNE 30, 2000 Public Law 106 229106th CongressAn ActTo facilitate the use of ELECTRONIC records and SIGNATURES in interstate or it enacted by the Senate and House of Representatives ofthe United States of America in Congress assembled,SECTION 1. SHORT Act may be cited as the ELECTRONIC SIGNATURES in Globaland NATIONAL Commerce Act.

2 TITLE I ELECTRONIC RECORDS ANDSIGNATURES IN COMMERCESEC. 101. GENERAL RULE OF VALIDITY.(a) INGENERAL. Notwithstanding any statute, regulation, orother rule of law (other than this title and title II), with respectto any transaction in or affecting interstate or foreign commerce (1) a signature , contract, or other record relating to suchtransaction may not be denied legal effect, validity, or enforce-ability solely because it is in ELECTRONIC form; and(2) a contract relating to such transaction may not bedenied legal effect, validity, or enforceability solely becausean ELECTRONIC signature or ELECTRONIC record was used in itsformation.

3 (b) PRESERVATION OFRIGHTS ANDOBLIGATIONS. This title doesnot (1) limit, alter, or otherwise affect any requirement imposedby a statute, regulation, or rule of law relating to the rightsand obligations of persons under such statute, regulation, orrule of law other than a requirement that contracts or otherrecords be written, signed, or in nonelectronic form; or(2) require any person to agree to use or accept electronicrecords or ELECTRONIC SIGNATURES , other than a governmentalagency with respect to a record other than a contract to whichit is a party.

4 (c) CONSUMERDISCLOSURES. (1) CONSENT TO ELECTRONIC RECORDS. Notwithstandingsubsection (a), if a statute, regulation, or other rule of lawrequires that information relating to a transaction or trans-actions in or affecting interstate or foreign commerce be pro-vided or made available to a consumer in writing, the useof an ELECTRONIC record to provide or make available (whichever15 USC USC inGlobal andNationalCommerce 30, 2000[S. 761]VerDate 11-MAY-2000 14:52 Jul 05, 2000 Jkt 079139 PO 00229 Frm 00002 Fmt 6580 Sfmt 6581 E:\PUBLAW\ APPS10 PsN: PUBL229114 STAT.)

5 465 PUBLIC LAW 106 229 JUNE 30, 2000is required) such information satisfies the requirement thatsuch information be in writing if (A) the consumer has affirmatively consented to suchuse and has not withdrawn such consent;(B) the consumer, prior to consenting, is provided witha clear and conspicuous statement (i) informing the consumer of (I) any right or optionof the consumer to have the record provided or madeavailable on paper or in nonelectronic form, and (II)the right of the consumer to withdraw the consentto have the record provided or made available in anelectronic form and of any conditions, consequences(which may include termination of the parties relation-ship)

6 , or fees in the event of such withdrawal;(ii) informing the consumer of whether the consentapplies (I) only to the particular transaction whichgave rise to the obligation to provide the record, or(II) to identified categories of records that may beprovided or made available during the course of theparties relationship;(iii) describing the procedures the consumer mustuse to withdraw consent as provided in clause (i) andto update information needed to contact the consumerelectronically; and(iv) informing the consumer (I) how, after the con-sent, the consumer may, upon request, obtain a papercopy of an ELECTRONIC record, and (II) whether any feewill be charged for such copy.

7 (C) the consumer (i) prior to consenting, is provided with a statementof the hardware and software requirements for accessto and retention of the ELECTRONIC records; and(ii) consents electronically, or confirms his or herconsent electronically, in a manner that reasonablydemonstrates that the consumer can access informationin the ELECTRONIC form that will be used to providethe information that is the subject of the consent;and(D) after the consent of a consumer in accordancewith subparagraph (A), if a change in the hardware orsoftware requirements needed to access or retain electronicrecords creates a material risk that the consumer willnot be able to access or retain a subsequent electronicrecord that was the subject of the consent, the personproviding the ELECTRONIC record (i) provides the consumer with a statement of (I)

8 The revised hardware and software requirements foraccess to and retention of the ELECTRONIC records, and(II) the right to withdraw consent without the imposi-tion of any fees for such withdrawal and without theimposition of any condition or consequence that wasnot disclosed under subparagraph (B)(i); and(ii) again complies with subparagraph (C).(2) OTHER RIGHTS. (A) PRESERVATIONOFCONSUMERPROTECTIONS. Nothing in this title affects the content or timing of anydisclosure or other record required to be provided or madeVerDate 11-MAY-2000 14:52 Jul 05, 2000 Jkt 079139 PO 00229 Frm 00003 Fmt 6580 Sfmt 6581 E:\PUBLAW\ APPS10 PsN: PUBL229114 STAT.

9 466 PUBLIC LAW 106 229 JUNE 30, 2000available to any consumer under any statute, regulation,or other rule of law.(B) VERIFICATION OR ACKNOWLEDGMENT. If a law thatwas enacted prior to this Act expressly requires a recordto be provided or made available by a specified methodthat requires verification or acknowledgment of receipt,the record may be provided or made available electronicallyonly if the method used provides verification or acknowledg-ment of receipt (whichever is required).(3) EFFECT OF FAILURE TO OBTAIN ELECTRONIC CONSENTORCONFIRMATIONOFCONSENT.

10 The legal effectiveness,validity, or enforceability of any contract executed by a con-sumer shall not be denied solely because of the failure toobtain ELECTRONIC consent or confirmation of consent by thatconsumer in accordance with paragraph (1)(C)(ii).(4) PROSPECTIVE EFFECT. Withdrawal of consent by a con-sumer shall not affect the legal effectiveness, validity, orenforceability of ELECTRONIC records provided or made availableto that consumer in accordance with paragraph (1) prior toimplementation of the consumer s withdrawal of consent.