Electronic signatures or eSignatures have made finalizing agreements and transactions easier. Whether you are signing up for a new service, sealing a contract or completing a financial transaction, eSignatures offer convenience and efficiency. However, it’s crucial to understand eSign disclosure to ensure transparency and legal compliance.
What is an Electronic Signature Disclosure?
It is a way to ensure both parties involved are fully aware of their rights and responsibilities when signing a document electronically. It’s like the terms and conditions section of your favorite app - important, albeit often overlooked.
Electronic signature disclosure, also known as eSign disclosure, is a statement provided to users when they agree to sign a document electronically. This statement serves as a beacon of consumer protection in the realm of electronic communications, outlining rights and prompting affirmative consent through eSignature.
Imagine you are opening a new account with a bank or any financial institution. When they ask for your eSignature, they must also furnish you with a consumer disclosure. This disclosure lays out your rights, including the ability to receive a copy of the transaction record in a non-electronic form, access to your records in the future, and the right to withdraw consent if needed.
What is the legal POV?
In the United States, electronic signatures are governed by the Electronic Signatures in Global and National Commerce Act (ESign Act), a law enacted in June 2000. This legislation standardizes the collection, authentication and enforcement of electronic signatures, ensuring their validity in legal proceedings.
Under the ESign Act, companies must adhere to certain disclosure requirements to ensure compliance and transparency. These include providing a clear and conspicuous statement of rights and responsibilities surrounding electronic signatures, as well as obtaining consent from all parties involved.
The ESign Act isn’t a one-size-fits-all solution. Certain documents, such as divorce decrees and adoption paperwork, are exempt from its provisions. Additionally, individual states may have their own legislation governing electronic transactions, like the Uniform Electronic Transactions Act (UETA). Please check with your compliance team to ensure that you follow the correct process for your state or industry.
How do we handle Electronic Signature Disclosure?
It is important to note that this eSignature service is facilitated on behalf of the “Signature Requestor” (which can be an entity including its affiliates and subsidiaries) who are reaching out to you seeking your electronic signatures. Sometimes, the law requires them to send you official notices or disclosures. With Baseline the “Signature Requestor” is able to send the said notices or disclosures electronically. By clicking on “Submit” during the signature process, you confirm your agreement to receive the said notices, disclosures, and documents electronically and to use your electronic signature to complete the process online.
As a Signer what does this mean for you?
When you engage in electronic transactions with the Signature Requestor, you are agreeing to complete a signature process including receiving and signing documents digitally.
While electronic transactions offer convenience, you may still prefer traditional paper documents. If you do so, you can request the Signature Requestor to send you paper copies of agreements, notices and other documents. You also have the ability to download and print any documents sent to you via Baseline.
If you are not ready to proceed with the electronic transaction, you need to immediately withdraw your consent by notifying the Signature Requestor.
What is the scope of consent?
Your consent to electronic transactions extends to all related and identified documents provided over the course of your relationship with the Signature Requestor. However, you have the freedom to withdraw consent to conducting business electronically at any point.
If you prefer to:
Receive paper documents
Withdraw consent to receive notices, agreements or any document electronically
Withdraw consent to sign electronically
Please contact the Signature Requestor and let them know of your preference.
Disclaimer
Any documents signed prior to withdrawing consent will remain valid. If you choose to proceed with electronic transactions after withdrawing consent, you will be consenting to receive documents, notices, agreements etc electronically once again.