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Product Disclosure Statement

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PRODUCT DISCLOSURE STATEMENT

Product Name:    Product Code:

Issuer Name:

Effective Date:    Location of Offering:

WHEREAS

WHEREAS, Issuer manufactures, markets and distributes the Product described in this Product Disclosure Statement for commercial sale and use;

WHEREAS, prospective purchasers and distributors require a clear statement of the Product's features, associated risks, fees and the conditions governing purchase and use; and

WHEREAS, Issuer provides this Product Disclosure Statement to disclose material terms and to document acknowledgment of those terms by the parties who sign below.

SCOPE AND INTENDED USE

PRODUCT DESCRIPTION

Description:

FEATURES AND BENEFITS

RISKS AND LIMITATIONS

Material Risks:

Product is subject to warranty limitations and exclusions as described in the Issuer's warranty policy. Customers should review all warranty terms prior to purchase.

FEES, PAYMENT TERMS AND CHARGES

Late Payment Fee:    Recovery of Costs: Issuer may recover reasonable costs of collection, including legal fees, where permitted by law.

ELIGIBILITY, ORDERING AND DELIVERY

CANCELLATION, RETURNS AND COOLING-OFF

Cooling-off Period (if applicable):

COMPLAINTS AND DISPUTE RESOLUTION

CONFIDENTIALITY

Both parties acknowledge that certain non-public information disclosed in connection with the Product may be confidential. Each party agrees to use confidential information solely for purposes necessary to perform obligations under any purchase and to protect such information using at least the same degree of care it uses to protect its own confidential information, but not less than reasonable care. Confidential information excludes information that is (a) publicly known through no breach by the receiving party, (b) rightfully received from a third party without restriction, or (c) independently developed without use of the disclosing party's confidential information.

GOVERNING LAW; LIMITATION OF LIABILITY

This Product Disclosure Statement and any dispute arising out of or relating to it shall be governed by the laws of the state of . Except as required by applicable consumer protection legislation, Issuer's liability for direct damages is limited to the purchase price paid for the Product. In no event shall Issuer be liable for consequential, incidental, special or punitive damages.

ENTIRE AGREEMENT

This Product Disclosure Statement, together with any signed purchase order, warranty statement and explicit written amendments executed by the parties, constitutes the entire disclosure of material terms concerning the Product and supersedes all prior oral or written representations and understandings regarding the Product.

ACKNOWLEDGMENT

By signing below, Recipient acknowledges receipt of this Product Disclosure Statement, acknowledges having had the opportunity to review the Product information and related risk disclosures, and confirms understanding of the terms set forth herein. Issuer certifies that the information contained in this Product Disclosure Statement is true and accurate to the best of Issuer's knowledge as of the Effective Date stated above.

Issuer (Company) Printed Name:

By:

Date:

Recipient Printed Name:

By:

Date:

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What a Product Disclosure Statement Is and when it’s used

A Product Disclosure Statement is a written document summarizing key terms, risks, fees, and performance characteristics of a financial or consumer product offered to customers. It explains features, material limitations, and the obligations of providers and recipients so recipients can make an informed decision. In the U.S. context the PDS often accompanies investment offerings, insurance products, and regulated consumer disclosures; format and required content can vary by industry and by state regulatory rules.

Why a clear Product Disclosure Statement matters

A clear PDS reduces regulatory risk, improves buyer understanding, and documents material disclosures required by law or industry practice.

Why a clear Product Disclosure Statement matters

Who prepares and who receives a Product Disclosure Statement

Typical preparers include compliance teams, legal counsel, product managers, and licensed brokers who must assemble the factual and legal disclosures.

  • Financial services compliance teams ensuring statutory disclosures and prospectus-level details are accurate.
  • Healthcare or life-science providers when product information intersects with patient consent or benefit descriptions.
  • Legal counsel or brokers who deliver required risk and fee statements to customers prior to sale.

Recipients are customers, investors, or counterparties who must receive and acknowledge the PDS before certain transactions proceed.

Core sections every professional Product Disclosure Statement should include

A comprehensive PDS organizes facts and obligations into consistent sections so reviewers can find fees, risks, and contractual terms quickly.

Summary

One-page executive summary of the product, target customer, and primary risks for quick reference by readers and reviewers.

Features

Detailed description of product features, service levels, pricing structure, fees, and any tiered or conditional benefits that apply.

Risks

Clear risk disclosures identifying material financial, safety, regulatory, or performance risks associated with product use or ownership.

Fees and Charges

Line-item list of recurring and one-time fees, penalty conditions, refund policies, and billing cycles with numerical examples where appropriate.

Legal Terms

Governing law, dispute resolution, limitation of liability, and any mandatory arbitration or cooling-off provisions that affect consumer rights.

Signature Blocks

Designated areas for authorized signers, dates, and witness or notary details when required; include electronic consent language when e-signed.

Essential data elements to include

Product Name: Exact legal product title
Issuer Details: Company name and contact info
Effective Date: MM/DD/YYYY
Material Terms: Fees, duration, limits
Risk Summary: Principal risk points
Signature Lines: Authorized signer fields

Step-by-step: preparing and finalizing a Product Disclosure Statement

Follow these sequential steps to create, review, deliver, sign, and retain a compliant Product Disclosure Statement.

  • 01
    Draft Sections: Assemble summary, fees, risks, and legal clauses.
  • 02
    Internal Review: Compliance and legal confirm disclosures and numerics.
  • 03
    Deliver to Recipient: Provide PDS and required consent disclosures.
  • 04
    Execute and Archive: Obtain signatures and store per retention rules.

Where to send a completed Product Disclosure Statement

Routing depends on the product and regulatory requirements; common destinations include customer records, compliance archives, and external regulators when required.

  • Customer Record: Attach the executed PDS to the client file or CRM entry.
  • Compliance Archive: Store a copy in central compliance repository with audit metadata.
  • Regulatory Filing: Submit required disclosures to regulators when statute requires public filing.
  • Third-Party Partners: Share executed copies with distributors or brokers as contractually required.

Configuring an online workflow for Product Disclosure Statements

Automate routing and e-signature collection with clear field mapping, signer roles, and retention settings.

Field Configuration
Signature Block Required | signer role | date field
Authentication Email+SMS code or KBA as needed
Routing Rule Sequential approval with conditional steps
Retention Policy Auto-archive with access controls

Digital signing and eSubmission technical considerations

Choose a platform that supports required security, audit trails, and optional advanced signer authentication.

  • Document Formats: PDF, DOCX accepted
  • Authentication Options: Email, SMS, or KBA
  • Integrations: CRM and cloud storage

Ensure the platform can produce tamper-evident signed files, an audit trail, and storage controls aligned with compliance obligations.

Key timelines and processing expectations

Timelines depend on internal review cycles, required cooling-off periods, and any statutory waiting periods applicable to the product or transaction.

Internal Review Time:

Allow 3–7 business days for compliance and legal review.

Customer Consideration:

Some products require a written cooling-off period of 3–30 days.

Signature Turnaround:

E-signatures often return within 24–72 hours when using email/SMS authentication.

Regulatory Filing Deadlines:

Follow industry-specific windows for any mandatory filings.

Record Retention Start:

Retention counts from the effective date or termination date as required.

Common mistakes to avoid when preparing a Product Disclosure Statement

  • Using imprecise fee descriptions that omit billing frequency or conditions, which can create disputes and regulatory attention.
  • Failing to include or document consumer electronic-consent disclosures required by 15 U.S.C. §7001 for consumer-facing records.
  • Mismatching signer names or legal entity names between the PDS and supporting registrations, triggering vendor or tax reporting issues.
  • Storing only unsigned drafts or failing to keep an audit trail, which undermines enforceability and regulatory proof of delivery.

Penalties and liability risks for incorrect or missing disclosures

Regulatory Fines: Civil penalties and enforcement actions
Contract Invalidity: Agreements may be voidable by recipients
Tax Consequences: Backup withholding or reporting penalties
Civil Liability: Consumer class actions risk
Compliance Costs: Remediation and legal fees
Reputational Harm: Customer trust erosion

Comparing eSignature solutions for executing Product Disclosure Statements

Common selection criteria include starting price, trial availability, bulk send, audit trails, HIPAA support, and envelope or usage caps; signNow appears first for comparison purposes.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies Varies Varies

Real-world examples of Product Disclosure Statement use

These two examples show how organizations apply disclosure documents in operational workflows and compliance settings.

Martin Properties

A regional real estate firm used an online PDS to streamline lease disclosures and remote closings.

  • Field teams closed deals remotely during showings.
  • I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently.

Fertility Centers of Illinois

A healthcare provider adopted digital PDS delivery to collect informed-consent acknowledgements.

  • Patients review and sign before procedures.
  • The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company.

Frequently asked questions about Product Disclosure Statements

Answers to common legal, technical, and process questions about preparing, signing, and retaining a PDS in the United States.


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