Governor Signs Assemblymember Holden’s Bill to Allow Electronic Contracts to Protect Consumers

Assembly Majority Leader Chris Holden’s bill (AB 1097) to allow for electronic contracts that will provide more consumer protections over paper contracts has been signed into law by Governor Brown.

AB 1097 would allow alarm companies in the state to fully utilize electronic contracts, at the discretion of the customer.

“With the evolution of the digital age, technology has advanced to such a degree that electronic contracts can now offer consumer protection measures that exceed those of traditional paper contracts,” said Assemblymember Holden. “With paper contracts, it is virtually impossible to know who signed a contract, when they signed, and whether or not copies of the contract and notice of cancellation were actually delivered.”

The adoption of electronic contracts provides greater transparency and gives the state additional enforcement tools to ensure that the sale was a voluntary transaction with the fulfillment of all notice requirements.

AB 1097 will go into effect January 1, 2015.