Is Blueink E-Sign Compliant? Security and Trust in a Digital Age

Business operations and forms of communication are always evolving—telegrams, phone operators, and bicycle couriers are now seen as relics of a pre-digital age. But the desire for speed, innovation, and streamlined processes remains constant. Since the 1970s, eSignatures have become a game-changer for efficiency. Instead of driving across town to collect a handwritten, blue-ink signature, it can be done online within seconds.

With this convenience, however, comes questions about legality, compliance, and security. This article covers what you need to know about those issues in the world of electronic signatures.

We'll focus on the specifics of the Electronic Signatures in Global and National Commerce Act (E-Sign Act), and how Blueink helps businesses adhere to the standards outlined within.

About the E-Sign Act

The E-Sign Act was signed into law by President Bill Clinton. Enacted in 2000, the Act was passed on the heels of the Uniform Electronic Transactions Act (UETA) of 1999.

The UETA Act provided the first legal framework to recognize electronic records (including paper records scanned and stored digitally). The Act specifies that documents and document signatures cannot be invalidated solely because the document or signature is in electronic format.

A year later, Congress passed the E-Sign Act which goes further. It ensures that an electronic signature receives the same consideration as a handwritten signature. A contract electronically signed is just as valid as a contract that has been hand-signed—provided that the signature was collected securely with a consumer disclosure provided.

Is Blueink E-Sign Act compliant?

Yes, Blueink meets (and exceeds) all the requirements outlined in the E-Sign Act.

Requirements for an eSignature to be E-Sign Act compliant

The E-Sign Act outlines specific criteria an electronic signature must meet for validity.

• Clear intent to sign: All signing parties (generally two parties engaging in a bilateral agreement) must demonstrate a clear intent to sign a document with its contents understood. Such intent can be demonstrated through methods like a typed signature, clicking on "Accept" buttons, or drawing a signature with a touchscreen stylus.
• Consumer consent: Before a signature is solicited, all parties must first explicitly agree to conduct business electronically. Typically, this means a business having a consumer sign an electronic communications consent form. This consent is not permanent; consumers may withdraw consent for eSignatures or electronic business transactions at any later date.
• Signature attribution: The electronic signature must be clearly linked to the specific individual who signed the document, generally made through an email address provided on an electronic communications consent form.
• Comprehensive audit trail: There must be a detailed record of all electronic transactions related to the signing of the document, including timestamps, IP addresses, geolocation tracking, and other stamps of authentication recorded during the signing process.
• Record retention: All legally entitled parties must receive a copy of the signed document electronically and in a non-electronic format upon request. The records must be an accurate representation of the original document and accessible to all parties. Additionally, records must be stored for the prescribed period of time (i.e., holding rental applications for two years) before being securely deleted or destroyed.

Additional compliance measures

While the E-Sign Act is a major cornerstone for e-signature legal requirements, many agencies and U.S. states may have additional electronic signature requirements based on the type of transaction.

Arizona, Nevada, and New York are three examples. In addition to the E-Sign Act, these states have state-specific signature laws to govern eSignatures: Arizona Electronic Transactions Act, Nevada Electronic Transactions Act, and the New York Electronic Signatures and Records Act (ERSA).

Organizations that conduct business across multiple states, countries, or industries should seek legal counsel to ensure proper compliance.

Blueink goes beyond E-Sign Act compliance

Blueink is a secure, simple e-signature software designed as an affordable and more user-friendly alternative to DocuSign. It prioritizes compliance with the E-Sign Act as well as guidelines for a range of different government agencies and heavily regulated industries such as education, healthcare, biopharmacy, and financial institutions.

• Enterprise-level security with strict access protocols that exceed the minimum standards in the E-Sign Act. This includes end-to-end data encryption and rigorous access and authentication controls to ensure compliance.
• Compliance with HIPAA, GDPR, Title 21 CFR Part 11, FERPA, the Sarbanes-Oxley Act, and more. This includes data privacy, security, and proper recordkeeping.

Do I have to comply with the E-Sign Act? (What happens if I don't?)

This is a not-uncommon question from landlords and small-business owners. Because, they reason, you could email a contract (drafted in Word) to another party via email and have them print, sign, scan, and send it back. And with electronic means used, some consider that signature “electronic.” 

However, you'd be missing many advantages, not the least of which is legal protection in the event of a contract dispute.

• Legal recognition: To be recognized as legal and binding, an electronic signature must be gathered through a secure eSignature platform such as Blueink. This will authenticate ownership of the document signer, with a trail of when and where the document was opened (timestamps, geolocation, IP tracking).
• Security: Electronic forms stored on an E-Sign compliant platform like Blueink have robust security measures to minimize the risk of fraud or data breaches. With any questions of signature validity, usage of a secure eSignature platform can quickly settle "fake" disputes.
• Greater efficiency: Using e-signature software streamlines the process of creating, sending, and gathering electronic forms and electronic signatures. This can shorten sales cycles, quicken onboarding processes, prevent signing delays, and remove the burden of physical travel, document storage, or needing a printer and scanner. Additionally, users can create templates and store commonly used documents, or even create automated document send flows. (i.e., Send this doc and then Form A if no reply in three days or Form B upon reply.)
• Enhanced customer experience: Using e-signature software creates a more user-friendly signing experience. If the party you are emailing has no printer, it could take several days to get back the form. With Blueink, however, you can email the electronic form via text message or email. Then with just a couple of clicks or taps on their phone, they can sign and be done.

If it's important enough to require a signature, it's important to obtain the signature in a secure, legally binding way that provides you with protection.

Frequently Asked Questions

What does the eSign Act apply to?

The eSign Act was signed into law in 2000. This federal law covers electronic documents, records, and eSignatures for transactions in or affecting interstate or foreign commerce. It covers parties conducting bilateral agreements (contracts between two parties).

As outlined earlier, however, some jurisdictions or industries may have additional requirements for soliciting and storing of any electronic records.

What is the E-Sign Act for debt collections?

For the most part, the E-Sign Act has not made debt collections easier or "more electronic." Debt collectors cannot contact consumers through electronic means without first receiving the debtor's express consent. However, the debt collector must make certain the consumer does not opt out of electronic communications after giving consent, and that the debtor’s email domain name is not associated with an employer.

For some types of notices, though, the Consumer Financial Protection Bureau (CFPB) does allow for initial validation letters to be delivered electronically. But given the potential gray-area challenges, debt collectors may be reluctant to use electronic means of contact.

Even if not texting or emailing debtors, the E-Sign Act still creates other obligations for debt collection entities. These agencies must maintain proper electronic recordkeeping practices, notably in securely storing documents for the required timeframe and making these documents easily accessible to the debtor.

What are the characteristics of a compliant electronic signature?

A compliant electronic signature commonly includes these elements:

• Printed name of the signer
• Unique user ID
• Timestamp for the date and time the signature was executed
• Digital-adopted signature (i.e., the font a signer selects to type their name)

There may be additional verification markers required, but these are the common ones to look for.

The FDA has issued guidance in a paper, Part 11, Electronic Records; Electronic Signatures — Scope and Application, to provide further clarification on electronic forms and e-signatures.

How are electronic signatures verified?

There are many ways to go about this, but in short, it's determined by checking the signature digital ID certificate. This contains information about when and how the e-document was opened and signed, including timestamps and IP addresses.

Does email count as an electronic signature?

An email may not be eSign Act compliant, but an email can be used as a legally binding contract in some situations. A contract or agreement—on paper form or electronic form—does not necessarily require a physical signature (handwritten or electronic) to be legally binding.

If an email contains these elements of a contract, it may be considered enforceable:

• Offer
• Acceptance
• Awareness
• Consideration
• Capacity
• Legality

A mutually signed contract—compliant with electronic signature laws—is virtually always a safer bet than falling back on email. It can better withstand legal scrutiny and provides a superior user experience for both parties.

Many businesses will electronically sign a contract, but with the agreement containing language to allow for future insertion orders or amendments to be made via email. 

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