“To require covered entities to issue a short-form terms of service summary statement, and for other purposes.”
No CRS summary available for this bill.
This section directs the Federal Trade Commission (FTC), not later than 360 days after enactment, to issue a rule under informal rulemaking procedures (5 U.S.C. 553) requiring covered entities to include on their websites (1) a truthful and non-misleading short-form terms of service summary statement at the top of the permanent terms page, covering categories of sensitive information processed, required versus additional uses, user legal liabilities and transferred rights (e.g., arbitration, class waivers), historical versions and change logs, data deletion directions, data breaches from the prior three years, estimated reading time for full terms, and other Commission-specified information; (2) a truthful and non-misleading graphic data flow diagram immediately below the summary; and (3) full terms in an interactive data format. The summary must be accessible to low-literacy individuals and those with disabilities, machine-readable, and adaptable by device. This section further directs the FTC to issue related guidelines on graphic data flow diagrams and a separate rule on interactive data tagging by the same deadline and clarifies that summaries impose no new contractual obligations. It treats violations as unfair or deceptive acts or practices under FTC rulemaking authority (15 U.S.C. 57a(a)(1)(B)), enforceable by the FTC with full powers under the FTC Act (15 U.S.C. 41 et seq.) and by state attorneys general on behalf of at least 1,000 affected residents.