E-Signature, E-Contract, and Remote Notarization: Regulatory Developments and Recent Enforceability Decisions

Description

In the current legal environment, both consumers and companies expect to transact business digitally and remain competitive; companies are escalating digital business operations.

Multiple states passed legislation expanding the definitions of digital identities and the scope of electronic signatures and records. States are loosening restrictions on notices and consents sent electronically and increasing electronic communications. Industries that state law previously barred from electronic contracts, such as insurance, are authorized to use current technology. Remote online notarization is currently allowed in 32 states, and state laws have eased requirements for a notarial witness and the use of remote notarization.

The current administration reauthorized the Financial Technology and Artificial Intelligence Task Forces, addressing artificial intelligence use without inadvertent bias. The Federal Trade Commission offers lessons on using AI truthfully, fairly, and equitably, which business counsel should consider when clients use the technology.

Case law has met the regulatory changes in addressing this evolving environment. The Supreme Court recently decided on a narrow definition of an "automatic telephone dialing system." This decision has long-term effects on interpretations of other technology-related federal and state laws and federal and state regulatory activities.

At the appellate level, the Eleventh Circuit overturned findings that "public accommodations" under Title III of the ADA included websites. Another high-profile federal circuit case ruled a valid contract did not exist where a unilateral change was made to a document after one party electronically signed. The First Circuit held an arbitration clause enforceable that was entered into via a mobile app. The e-contract case determined that the consumer was on "inquiry notice" of an online agreement even if the plaintiff failed to read its terms but affirmatively clicked the relevant button.

Listen as our authoritative panel discusses the current status of e-signatures, e-contracts, and remote notarizations. The panel will review the changes in legislation and case law in this area.