“A bill 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 requires the Federal Trade Commission (FTC), not later than 360 days after enactment, to issue rules under 5 U.S.C. §553 directing covered entities that publish terms of service to (1) include a truthful, non-misleading short-form summary statement at the top of their permanent terms of service webpage (covering categories of sensitive information processed; information required for basic service functioning versus additional features; user legal liabilities and transferred rights such as arbitration or class action waivers; historical versions and change logs; data deletion instructions if offered; data breaches reported to consumers in the prior three years; estimated reading time for full terms; and other Commission-specified information), (2) include a graphic data flow diagram immediately below the summary, and (3) display full terms in an interactive data format. The section further requires the FTC, within the same 360-day period, to issue a rule mandating interactive data tagging of terms of service and to publish guidelines for covered entities' graphic depictions of sensitive information sharing with affiliates and third parties. (Thus, violations are treated as unfair or deceptive acts or practices under FTC Act §18(a)(1)(B) (15 U.S.C. §57a(a)(1)(B)), enforceable by the FTC or state attorneys general on behalf of at least 1,000 affected state residents; the summary creates no new contractual obligations.)