ESIGN

ESIGN, the Electronic Signatures in Global and National Commerce Act, is a United States federal statute enacted in 2000 (Public Law 106-554) and signed into law to facilitate electronic commerce. It provides that electronic signatures and electronic records have the same legal effect and enforceability as traditional paper signatures and documents in interstate and foreign commerce, subject to certain conditions and limitations.

Core provisions include that a signature may be electronic, such as an electronic sound, symbol, or process, and that records electronic in form are admissible as evidence and enforceable as paper. The act requires parties to consent to use electronic records and to have the ability to access them; electronic records must be capable of being retained and reproduced.

Scope and interaction with state law: ESIGN preempts state laws that would deny the legal effect of electronic signatures in interstate commerce, but it works in concert with state-level electronic transaction laws, notably the Uniform Electronic Transactions Act. Storage and retention of electronic records must be reliable. The act does not require people to adopt electronic records; it simply ensures parity where electronic formats are used.

Limitations and impact: Some categories of documents and transactions are excluded by ESIGN or by related law, so not all records can be created or signed electronically. Since its passage, ESIGN has enabled broader use of e-signatures in finance, consumer agreements, and online services, while raising ongoing considerations around accessibility, privacy, and cybersecurity.