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electronic contract disclosure requirements November 24, 2017

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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electronic contract disclosure requirements
November 24, 2017
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electronic contract disclosure requirements
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Ken
    I have a question please. I’m trying to wrap my head around the need for “DISCLOSURE AND CONSENT TO ELECTRONIC COMMUNICATION”.     I just purchased the the All in One and Disclaimer notice.  Why do I also need the  “DISCLOSURE AND CONSENT TO ELECTRONIC COMMUNICATION”  if I want to have these contracts electronically signed?   Can you give me an example of what one looks like? I do plan on getting some of these contracts signed electronically whenever possible.  What would happen if I did not have the electronic disclosure?
Thanks
Nick 
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Response
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    This issue was adequately addressed in my article on January 18, 2017 [which you can read on my website - all of our articles are published on our website], but I'll make it even easier and copy the article below. 
    Those of you using companies that provide electronic contract service should be careful about complying with consumer laws.  Generally the notice that the electronic company is giving you states that electronic contracts are enforceable by law.  That's true, but that doesn't help you comply with consumer laws that require certain notices.  In order to comply with those laws you will need a Disclosure and Consent to delivery documents to the subscriber via electronic communication.  That's why we offer the Disclosure and Consent to Electronic Communication.  
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MORE ON ELECTRONIC CONTRACTS FROM JANUARY 18, 2017 ARTICLE
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Ken
    In regards to the article about electronic signatures and enforcement from January 18, 2017, we use a program called PandaDoc and they have a statement on their website in regards to this that states:      "Secure and Legally Binding.  PandaDoc’s eSignatures are secure and legally binding. They are compliant with both UETA and the Federal ESIGN Act, in addition to being recognized by many countries worldwide."
    They don't have a consent form but they have that statement.   Would that cover us or would we still need to get a consent form?
Thank you!
Respectfully,
M
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RESPONSE
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    The above statement is not sufficient for alarm company purposes.  Electronic contracts, signed electronically, are enforceable in the same manner and under same conditions as paper contracts.  The above notice seems to make that statement.  However in the alarm business, especially if you deal with "consumers" [generally defined as residential customers] you are required to provide certain documents to the consumer.  You can't provide the documents electronically unless you have the consent from the customer, and that consent has to be in certain form to comply with the Federal Statute.  
    You should be using the DIsclosure and Consent to Electronic Communication that you can get at www.alarmcontracts.com.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com