The TLDR Act requires companies to provide clear, concise summaries of their terms of service, including data usage and user rights, to improve transparency and accessibility for all users.
Bill Cassidy
Senator
LA
The TLDR Act requires websites and online services to provide a short, easy-to-understand summary of their terms of service, including data usage, user liabilities, and data breach history. This summary must be accessible, truthful, and include a data flow diagram. The FTC will enforce these rules, and state attorneys general can also bring civil actions for violations.
New 'TLDR Act' Would Force Websites to Provide Short, Understandable Terms of Service Summaries
Let's be real: almost nobody reads the full terms of service (ToS) before clicking 'agree.' The proposed 'Terms-of-service Labeling, Design, and Readability Act,' or 'TLDR Act,' aims to change the game by requiring most commercial websites and online services—excluding small businesses—to provide a straightforward summary right at the top. The Federal Trade Commission (FTC) would have about a year (360 days) after the bill passes to create rules for these summaries, ensuring they're clear, truthful, and accessible, even for people with low literacy or disabilities.
Finally, a CliffNotes Version for ToS
So, what goes into this mandatory summary? It's the stuff you actually care about but usually can't find easily. Companies would need to list the types of sensitive data they collect (like health info, location, biometrics), specify what data is essential for the service versus optional features, and outline key legal points like mandatory arbitration clauses or if they can sell your content. They'll also need to include links to past ToS versions, instructions for deleting your data (if they offer it), a list of data breaches reported in the last three years, and even an estimate of how long it would take to read the full document, complete with a word count. Think of it as getting the crucial highlights before you commit, potentially saving you from unknowingly signing away rights.
Seeing Where Your Data Goes
Beyond the text summary, the bill requires a 'graphic data flow diagram' placed right below it. While the FTC still needs to issue guidelines on exactly how this looks, the goal is to visually show how your information gets shared with subsidiaries, affiliates, and other third parties. We all wonder where our data ends up; this aims to provide a clearer picture. The full terms of service would also need to be presented in an interactive format, potentially making it easier to navigate than the dense blocks of text we currently face.
Who Makes Sure This Happens?
Accountability is key here. The FTC is tasked with enforcing these rules, treating non-compliance as an 'unfair or deceptive act,' which is standard practice for consumer protection violations. Additionally, State Attorneys General get the power to bring civil lawsuits against companies on behalf of residents (at least 1,000 affected) if they aren't following the rules. This dual enforcement approach—federal oversight plus state-level action—gives the requirements some real teeth, aiming to ensure companies actually create these useful summaries and diagrams, rather than just paying lip service to transparency.