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Online Transactions Using Electronic Signatures Must Follow E-File Requirements

In conducting transactions with consumers over the Internet that require electronic signatures, a business needs to be familiar with federal E-Sign requirements so that it properly obtains consumer consent.  The business must provide specific disclosures that make clear that a consumer agrees to (a) receive disclosures in electronic form and (b) conduct transactions electronically.  Consent terms must also describe what disclosures will be provided electronically (this can be a broad description of the types of disclosures/communications that may be provided).  Proper E-Sign disclosures must also tell consumers what hardware/software is needed to receive disclosures electronically and must inform consumers that they have the right to revoke consent and receive disclosures in paper form (and whether there are any costs associated with receiving paper disclosures).