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Legal & Compliance7 min readJanuary 12, 2026

The ESIGN Act Explained: What You Need to Know

A comprehensive guide to the US Electronic Signatures in Global and National Commerce Act.

SC

Sarah Chen

CEO & Co-founder

What is the ESIGN Act?

The Electronic Signatures in Global and National Commerce Act (ESIGN Act) is a US federal law passed in 2000 that gives electronic signatures the same legal status as handwritten signatures.

Key Provisions

Legal Recognition

Electronic signatures cannot be denied legal effect solely because they are electronic.

Consumer Consent

Consumers must consent to receive electronic records and signatures.

Record Retention

Electronic records must be accurately retained and accessible.

What the ESIGN Act Covers

  • Contracts
  • Agreements
  • Notices
  • Disclosures
  • Most commercial transactions
  • Exceptions

    Some documents still require wet ink signatures:

  • Wills and trusts
  • Family law matters (adoption, divorce)
  • Court orders
  • Foreclosure notices
  • Health insurance terminations
  • Product recalls
  • Best Practices for ESIGN Compliance

  • Obtain consent to do business electronically
  • Provide clear opt-out procedures
  • Maintain accurate audit trails
  • Ensure records are accessible
  • Use a compliant e-signature platform like SignFlow
  • Learn more about our compliance

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