[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC7001]
TITLE 15--COMMERCE AND TRADE
CHAPTER 96--ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE
SUBCHAPTER I--ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE
Sec. 7001. General rule of validity
(a) In general
Notwithstanding any statute, regulation, or other rule of law (other
than this subchapter and subchapter II of this chapter), with respect to
any transaction in or affecting interstate or foreign commerce--
(1) a signature, contract, or other record relating to such
transaction may not be denied legal effect, validity, or
enforceability solely because it is in electronic form; and
(2) a contract relating to such transaction may not be denied
legal effect, validity, or enforceability solely because an
electronic signature or electronic record was used in its formation.
(b) Preservation of rights and obligations
This subchapter does not--
(1) limit, alter, or otherwise affect any requirement imposed by
a statute, regulation, or rule of law relating to the rights and
obligations of persons under such statute, regulation, or rule of
law other than a requirement that contracts or other records be
written, signed, or in nonelectronic form; or
(2) require any person to agree to use or accept electronic
records or electronic signatures, other than a governmental agency
with respect to a record other than a contract to which it is a
party.
(c) Consumer disclosures
(1) Consent to electronic records
Notwithstanding subsection (a) of this section, if a statute,
regulation, or other rule of law requires that information relating
to a transaction or transactions in or affecting interstate or
foreign commerce be provided or made available to a consumer in
writing, the use of an electronic record to provide or make
available (whichever is required) such information satisfies the
requirement that such information be in writing if--
(A) the consumer has affirmatively consented to such use and
has not withdrawn such consent;
(B) the consumer, prior to consenting, is provided with a
clear and conspicuous statement--
(i) informing the consumer of (I) any right or option of
the consumer to have the record provided or made available
on paper or in nonelectronic form, and (II) the right of the
consumer to withdraw the consent to have the record provided
or made available in an electronic form and of any
conditions, consequences (which may include termination of
the parties' relationship), or fees in the event of such
withdrawal;
(ii) informing the consumer of whether the consent
applies (I) only to the particular transaction which gave
rise to the obligation to provide the record, or (II) to
identified categories of records that may be provided or
made available during the course of the parties'
relationship;
(iii) describing the procedures the consumer must use to
withdraw consent as provided in clause (i) and to update
information needed to contact the consumer electronically;
and
(iv) informing the consumer (I) how, after the consent,
the consumer may, upon request, obtain a paper copy of an
electronic record, and (II) whether any fee will be charged
for such copy;
(C) the consumer--
(i) prior to consenting, is provided with a statement of
the hardware and software requirements for access to and
retention of the electronic records; and
(ii) consents electronically, or confirms his or her
consent electronically, in a manner that reasonably
demonstrates that the consumer can access information in the
electronic form that will be used to provide the information
that is the subject of the consent; and
(D) after the consent of a consumer in accordance with
subparagraph (A), if a change in the hardware or software
requirements needed to access or retain electronic records
creates a material risk that the consumer will not be able to
access or retain a subsequent electronic record that was the
subject of the consent, the person providing the electronic
record--
(i) provides the consumer with a statement of (I) the
revised hardware and software requirements for access to and
retention of the electronic records, and (II) the right to
withdraw consent without the imposition of any fees for such
withdrawal and without the imposition of any condition or
consequence that was not disclosed under subparagraph
(B)(i); and
(ii) again complies with subparagraph (C).
(2) Other rights
(A) Preservation of consumer protections
Nothing in this subchapter affects the content or timing of
any disclosure or other record required to be provided or made
available to any consumer under any statute, regulation, or
other rule of law.
(B) Verification or acknowledgment
If a law that was enacted prior to this chapter expressly
requires a record to be provided or made available by a
specified method that requires verification or acknowledgment of
receipt, the record may be provided or made available
electronically only if the method used provides verification or
acknowledgment of receipt (whichever is required).
(3) Effect of failure to obtain electronic consent or
confirmation of consent
The legal effectiveness, validity, or enforceability of any
contract executed by a consumer shall not be denied solely because
of the failure to obtain electronic consent or confirmation of
consent by that consumer in accordance with paragraph (1)(C)(ii).
(4) Prospective effect
Withdrawal of consent by a consumer shall not affect the legal
effectiveness, validity, or enforceability of electronic records
provided or made available to that consumer in accordance with
paragraph (1) prior to implementation of the consumer's withdrawal
of consent. A consumer's withdrawal of consent shall be effective
within a reasonable period of time after receipt of the withdrawal
by the provider of the record. Failure to comply with paragraph
(1)(D) may, at the election of the consumer, be treated as a
withdrawal of consent for purposes of this paragraph.
(5) Prior consent
This subsection does not apply to any records that are provided
or made available to a consumer who has consented prior to the
effective date of this subchapter to receive such records in
electronic form as permitted by any statute, regulation, or other
rule of law.
(6) Oral communications
An oral communication or a recording of an oral communication
shall not qualify as an electronic record for purposes of this
subsection except as otherwise provided under applicable law.
(d) Retention of contracts and records
(1) Accuracy and accessibility
If a statute, regulation, or other rule of law requires that a
contract or other record relating to a transaction in or affecting
interstate or foreign commerce be retained, that requirement is met
by retaining an electronic record of the information in the contract
or other record that--
(A) accurately reflects the information set forth in the
contract or other record; and
(B) remains accessible to all persons who are entitled to
access by statute, regulation, or rule of law, for the period
required by such statute, regulation, or rule of law, in a form
that is capable of being accurately reproduced for later
reference, whether by transmission, printing, or otherwise.
(2) Exception
A requirement to retain a contract or other record in accordance
with paragraph (1) does not apply to any information whose sole
purpose is to enable the contract or other record to be sent,
communicated, or received.
(3) Originals
If a statute, regulation, or other rule of law requires a
contract or other record relating to a transaction in or affecting
interstate or foreign commerce to be provided, available, or
retained in its original form, or provides consequences if the
contract or other record is not provided, available, or retained in
its original form, that statute, regulation, or rule of law is
satisfied by an electronic record that complies with paragraph (1).
(4) Checks
If a statute, regulation, or other rule of law requires the
retention of a check, that requirement is satisfied by retention of
an electronic record of the information on the front and back of the
check in accordance with paragraph (1).
(e) Accuracy and ability to retain contracts and other records
Notwithstanding subsection (a) of this section, if a statute,
regulation, or other rule of law requires that a contract or other
record relating to a transaction in or affecting interstate or foreign
commerce be in writing, the legal effect, validity, or enforceability of
an electronic record of such contract or other record may be denied if
such electronic record is not in a form that is capable of being
retained and accurately reproduced for later reference by all parties or
persons who are entitled to retain the contract or other record.
(f) Proximity
Nothing in this subchapter affects the proximity required by any
statute, regulation, or other rule of law with respect to any warning,
notice, disclosure, or other record required to be posted, displayed, or
publicly affixed.
(g) Notarization and acknowledgment
If a statute, regulation, or other rule of law requires a signature
or record relating to a transaction in or affecting interstate or
foreign commerce to be notarized, acknowledged, verified, or made under
oath, that requirement is satisfied if the electronic signature of the
person authorized to perform those acts, together with all other
information required to be included by other applicable statute,
regulation, or rule of law, is attached to or logically associated with
the signature or record.
(h) Electronic agents
A contract or other record relating to a transaction in or affecting
interstate or foreign commerce may not be denied legal effect, validity,
or enforceability solely because its formation, creation, or delivery
involved the action of one or more electronic agents so long as the
action of any such electronic agent is legally attributable to the
person to be bound.
(i) Insurance
It is the specific intent of the Congress that this subchapter and
subchapter II of this chapter apply to the business of insurance.
(j) Insurance agents and brokers
An insurance agent or broker acting under the direction of a party
that enters into a contract by means of an electronic record or
electronic signature may not be held liable for any deficiency in the
electronic procedures agreed to by the parties under that contract if--
(1) the agent or broker has not engaged in negligent, reckless,
or intentional tortious conduct;
(2) the agent or broker was not involved in the development or
establishment of such electronic procedures; and
(3) the agent or broker did not deviate from such procedures.
(Pub. L. 106-229, title I, Sec. 101, June 30, 2000, 114 Stat. 464.)
References in Text
This chapter, referred to in subsec. (c)(2)(B), was in the original
``this Act'', meaning Pub. L. 106-229, June 30, 2000, 114 Stat. 464,
which is classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title note below and
Tables.
For the effective date of this subchapter, referred to in subsec.
(c)(5), see Effective Date note below.
Effective Date
Pub. L. 106-229, title I, Sec. 107, June 30, 2000, 114 Stat. 473,
provided that:
``(a) In General.--Except as provided in subsection (b), this title
[enacting this subchapter] shall be effective on October 1, 2000.
``(b) Exceptions.--
``(1) Record retention.--
``(A) In general.--Subject to subparagraph (B), this title
[enacting this subchapter] shall be effective on March 1, 2001,
with respect to a requirement that a record be retained imposed
by--
``(i) a Federal statute, regulation, or other rule of
law, or
``(ii) a State statute, regulation, or other rule of law
administered or promulgated by a State regulatory agency.
``(B) Delayed effect for pending rulemakings.--If on March
1, 2001, a Federal regulatory agency or State regulatory agency
has announced, proposed, or initiated, but not completed, a
rulemaking proceeding to prescribe a regulation under section
104(b)(3) [15 U.S.C. 7004(b)(3)] with respect to a requirement
described in subparagraph (A), this title shall be effective on
June 1, 2001, with respect to such requirement.
