The E-SIGN Act also establishes rules that clarify the requirements for retaining electronic records and contracts as well as sending and receiving notices or disclosures.
Special provisions apply to protect consumers.
Traditional paper format is still required for documents such as wills, testamentary trusts, court orders and notices, notices regarding the cancellation of utility services and health or life insurance policies. The E-SIGN Act ostensibly preempts state laws that restrict the enforceability of digital signatures. States may expand the scope of the E-SIGN Act by adopting a new uniform national model, as proposed in House Bill 5537 recently adopted by the Michigan House of Representatives. The E-SIGN Act does not require the use of electronic signatures or documents. If electronic signatures or documents are used, the E-SIGN Act will, among other things, allow businesses to contract for the purchase and sale of goods and services without a paper signature.