United States HR 6407: TLDR Act

Bill Text

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117TH CONGRESS
2D SESSION H. R. 6407
To require the Federal Trade Commission to issue a short-form terms of
service summary statement, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 13, 2022
Mrs. TRAHAN introduced the following bill; which was referred to the
Committee on Energy and Commerce
A BILL
To require the Federal Trade Commission to issue a short-
form terms of service summary statement, and for other
purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Terms-of-service La-4
beling, Design, and Readability Act’’ or the ‘‘TLDR Act’’. 5
SEC. 2. STANDARD TERMS OF SERVICE SUMMARY STATE-6
MENT. 7
(a) DEADLINE FOR TERMS OF SERVICE SUMMARY 8
STATEMENT.—Not later than 360 days after the date of 9
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the enactment of this Act, the Commission shall issue a 1
rule under section 553 of title 5, United States Code— 2
(1) that requires a covered entity to include a 3
short-form terms of service summary statement on 4
the website of the entity; 5
(2) that requires a covered entity to include a 6
graphic data flow diagram on the website of the en-7
tity and includes guidance for such diagram; and 8
(3) that requires a covered entity to display the 9
full terms of service of the entity in an interactive 10
data format. 11
(b) REQUIREMENTS FOR SHORT-FORM TERMS OF 12
SERVICE SUMMARY STATEMENT.— 13
(1) IN GENERAL.—The short-form terms of 14
service summary statement described in subsection 15
(a)— 16
(A) shall be easy to understand, machine 17
readable, and may include tables, graphic icons, 18
hyperlinks, or other means determined by the 19
Commission; and 20
(B) may be established separately depend-21
ing on the interface or type of device on which 22
the statement is being accessed by the user. 23
(2) LOCATION OF SUMMARY STATEMENT AND 24
GRAPHIC DATA FLOW DIAGRAM.—The summary 25
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statement shall be placed at the top of the perma-1
nent terms of service page of the covered entity and 2
any graphic data flow diagram shall be located im-3
mediately below the statement. 4
(3) CONTENTS OF SUMMARY STATEMENT.—The 5
summary statement shall disclose the following: 6
(A) The effort required by a user to read 7
the entire terms of service text, such as through 8
the total word count and approximate time to 9
read the statement. 10
(B) The categories of sensitive information 11
that the covered entity processes. 12
(C) The sensitive information that is re-13
quired for the basic functioning of the service 14
and what sensitive information is needed for ad-15
ditional features and future feature develop-16
ment. 17
(D) A summary of the legal liabilities of a 18
user and any rights transferred from the user 19
to the covered entity, such as mandatory arbi-20
tration, class action waiver, any licensing by the 21
covered entity of the content of the user, and 22
any waiver of moral rights. 23
(E) Historical versions of the terms of 24
service and change logs. 25
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(F) If the covered entity provides user de-1
letion services, directions for how the user can 2
delete sensitive information or discontinue the 3
use of sensitive information. 4
(G) A list of data breaches from the pre-5
vious 3 years reported to consumers under ex-6
isting Federal and State laws. 7
(H) Anything else determined to be nec-8
essary by the Commission. 9
(c) GUIDANCE ON GRAPHIC DATA FLOW DIA-10
GRAMS.—Not later than 360 days after the date of the 11
enactment of this Act, the Commission shall publish guide-12
lines on how a covered entity can graphically display how 13
sensitive information of a user is shared with a subsidiary 14
or corporate affiliate of such entity and how sensitive in-15
formation is shared with third parties. 16
(d) INTERACTIVE DATA FORMAT TERMS OF SERV-17
ICE.—Not later than 360 days after the date of the enact-18
ment of this Act, the Commission shall issue a rule under 19
section 553 of title 5, United States Code, that requires 20
a covered entity to tag portions of the terms of services 21
of the entity according to an interactive data format. 22
(e) ENFORCEMENT.— 23
(1) UNFAIR OR DECEPTIVE ACTS OR PRAC-24
TICES.—A violation of this section or a regulation 25
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promulgated under this section shall be treated as a 1
violation of a regulation under sec