There have been significant advances in electronic commerce and business transactions using electronic signatures during the three-year period following the passage of the ESIGN Act. The goal of the Act, to facilitate the use of electronic records and signatures in interstate or foreign commerce, has been substantially realized. In addition to the overall success of the Act in furthering the use of electronic signatures and documents in commercial transactions, the nine exceptions have worked well, along with section 101(c) of ESIGN, as a mechanism for protecting consumers.

The data and information provided by the comments and independent research discussed in Electronic Signatures: A Review of the Exceptions to the Electronic Signatures in Global and National Commerce Act present a snapshot of how electronic records and signatures have been received by businesses and consumers over the past three years. The information presented in this evaluation demonstrates that electronic or "e-commerce" is not only "alive and well", but is thriving and quickly becoming a well-established method of transacting business in America. This evaluation also discusses information to show that Americans with computer and Internet access are increasingly receptive to electronic commercial transactions. Finally, and most importantly, the information discussed above presents a realistic picture of the progress of the policies, mechanisms, and practices that are necessary to guarantee continued protection in the areas of confidentiality, privacy, and security for American consumers engaged in electronic transactions.

After three years, there has been remarkable progress in some of the areas covered by the exceptions in terms of the use of electronic signatures and records, in particular, the courts, product recalls, and UCC transactions. The institutions responsible for these areas have been successful at adopting consumer protection policies, although they are not fully developed and integrated. Due to the high confidentiality and privacy interests inherent in transactions involving other exceptions (such as wills, family law, foreclosure and defaults, utility cancellations), there are few, if any, solutions other than ESIGN that institutions and the marketplace can provide at this time. Some of these issues may be resolved over time as technology progresses to provide more secure authentication, privacy, and security solutions.

Thus, the overall progress in the nine areas covered by the exceptions is noteworthy. However, policies and practices for consumer protection in each area are still being established and incorporated into e-commerce and market systems. The process for development of these policies and practices, though gradual, is occurring at an effective pace. The acceptance of electronic signatures and electronic documents as a part of commercial transactions has developed to the extent, however, that Congress may effectively work with the agencies and entities directly involved with each exception area to develop adequate consumer protection mechanisms in order to eventually remove the exceptions. NTIA recommends, therefore, that the Congress of the United States retain each of the nine exceptions to the ESIGN Act to allow the further development of the electronic marketplace in this country and the establishment of additional consumer protections in electronic transactions systems. NTIA further recommends that Congress amend the ESIGN Act to allow utility companies to send electronic cancellation notices to consumers that participate in voluntary electronic billing programs, and to remove electronic letter of credit transactional records governed by Article 5 and electronic notices governed by Article 6 from the list of exceptions to the Act.