Available on: All plans
Why use eSignature disclosure?
Under U.S. law, including the ESIGN Act and the Uniform Electronic Transactions Act (UETA), an electronic signature is valid only if the signer demonstrates intent to sign and consents to conduct the transaction electronically.
Legal compliance: Active, affirmative consent is mandatory for consumer transactions under the ESIGN Act and UETA.
Proof of consent: Loio stores and logs the acceptance of the disclosure in the document's audit trail, providing self-contained evidence of the signer's agreement.
Regional nuance: While ESIGN covers the U.S., states like Illinois and New York have specific equivalents, and California has unique carve-outs for consumer transactions.
How to set up eSignature disclosure
As a sender and account admin, you can configure the eSign disclosure once for your entire account.
1. Navigate to your profile > Settings and locate the eSignature disclosure section.
2. Enable eSignature disclosure: Use the toggle Require signers to accept the Electronic Record and Signature Disclosure to turn the feature on.
Note that eSignature disclosure is off by default. You can activate it by turning the toggle on and entering your company name.
3. Enter your company name: This is a required step. The name you enter will automatically populate your consent banner and statement.
4. Customize disclosure text: Loio provides a pre-filled disclosure template, but you can edit its content and formatting according to your specific needs. Click Save changes to keep your edits, or Restore default to return to the default template.
Below is Loio’s standard Electronic Record and Signature Disclosure. This template is provided for your convenience only. Please note that you are solely responsible for ensuring that your consent management practices and any modifications to this template comply with all applicable laws and regulations.
5. Configure recipient options:
Allow recipients to withdraw their consent: If enabled, recipients can revoke their consent during any ongoing signing session, thereby terminating the electronic signing relationship with you.
Attach disclosure to a completed document: If enabled, the full disclosure text will be attached as the final page of the document's history (audit trail), and every party will be able to download it after signing along with the completed document.
The signer’s experience
Signers must accept the disclosure before they can view or sign a document:
A disclosure banner appears at the beginning of the user’s first signing session with the sender (company). The recipient can view the disclosure statement by clicking the link on the banner.
The signer must check the box "I accept the disclosure and agree to use electronic signatures" and click Continue to proceed to signing.
If the recipient chooses not to sign the document electronically, they can click More actions > Decline. They will be prompted to provide a reason for declining, and the sender will be notified.
Note: The recipient will not be able to sign without accepting the eSignature disclosure.
Reviewing disclosure during a signing session
If the recipient accepts the disclosure and wants to review it again during the signing session, they can click the burger menu in the top-right and select eSignature disclosure.
The disclosure statement will appear in the pop-up window. If the signer changes their mind and wishes to dissolve the electronic signing relationship immediately, they can click Withdraw consent and confirm their action (if the withdrawal option is turned on by the sender). In that case, the signing session will stop, and the document will be declined.
Withdrawing consent
If the sender has enabled the withdrawal option (the Allow recipients to withdraw their consent checkbox), signers can revoke their consent during the signing session by clicking the burger menu and selecting Decline.
The recipient will be prompted to provide a reason for declining and can check the box to withdraw their consent. The checkbox is only available if the user has previously accepted the eSignature disclosure from this sender.
Consequence: Withdrawing consent dissolves the electronic signing relationship for current and future documents from that sender (note that withdrawal cannot apply retroactively for documents that have already been signed).
Status change: The document is automatically moved to 'Declined' status upon withdrawal. The recipient won’t be able to sign it.
What’s next? The sender can request signatures from recipients who have withdrawn their consent, but they will need to accept the disclosure again to re-establish the electronic signing relationship.
FAQ
Is the eSignature disclosure mandatory?
While Loio does not force you to enable eSignature disclosure, we strongly recommend turning it on for all agreements, especially consumer transactions, to ensure compliance with the ESIGN Act and UETA. If you are unsure, please verify the requirements for your jurisdiction with your legal counsel.
Do recipients have to accept the disclosure for every document?
Consent is tracked per the relationship between the sender’s account and the signer’s email address. Once a signer accepts the disclosure for your account (company), they do not need to accept it again for future documents unless they withdraw their consent. However, if you modify your disclosure text, signers will be prompted to review and accept the updated version.
Where is the proof of consent stored?
The signer's acceptance is automatically logged in the document’s audit trail, which is available to all parties. If you enable the "Attach disclosure to a completed document" option, the full disclosure text is also appended to the final page of the completed document, providing a permanent record.
What if the sender doesn’t provide an option to withdraw consent?
If the withdrawal option is turned off in the settings or not described in the consent text, the user can send a message to Loio’s support (support@loio.com) to request a manual withdrawal.