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People & committees
Rep. Trahan, Lori [D-MA-3] · D–MA
Legislative record
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Referred to the House Committee on Energy and Commerce.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-03-10 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This proposal would require covered operators of websites on the internet or online services operated for commercial purposes to make their terms of service easier to inspect through a short summary, a diagram showing how sensitive information is shared, and electronically tagged full terms. The summary would explain data practices and important terms affecting users’ rights and responsibilities. Qualifying small businesses would be excluded. The Federal Trade Commission would write the rules and enforce them, with state attorneys general also able to bring cases under specified conditions.
(1) that requires the covered entity to include a truthful and non-misleading short-form terms of service summary statement on the website of the entity; (2) that requires the covered entity to include a truthful and non-misleading graphic data flow diagram on the website of the entity; and (3) that requires the covered entity to display the full terms of service of the entity in an interactive data format.
(2) Covered entity The term covered entity— (A) means any person that operates a website located on the internet or an online service that is operated for commercial purposes; and (B) does not include a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)).
(A) The categories of sensitive information that the covered entity processes. (B) The sensitive information that is required for the basic functioning of the service and what sensitive information is needed for additional features and future feature development.
(C) A summary of the legal liabilities of a user and any rights transferred from the user to the covered entity, such as mandatory arbitration, class action waiver, any licensing or sale by the covered entity of the content of the user, and any waiver of moral rights.
The Commission shall enforce this section and the regulations promulgated under this section
the attorney general of the State, as parens patriae, may bring a civil action on behalf of the residents of the State
(1) Commission The term Commission means the Federal Trade Commission.
Section 1 would name the proposal the Terms-of-service Labeling, Design, and Readability Act, or TLDR Act.
This Act may be cited as the Terms-of-service Labeling, Design, and Readability Act or the TLDR Act.
Coverage would extend to operators of websites on the internet or online services operated for commercial purposes, excluding businesses that qualify as small business concerns under the cited Small Business Act definition. The disclosure rule would apply to covered operators that publish or have published terms of service.
with regard to a covered entity that publishes or has published a terms of service
(2) Covered entity The term covered entity— (A) means any person that operates a website located on the internet or an online service that is operated for commercial purposes; and (B) does not include a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)).
Within 360 days after enactment, the Federal Trade Commission would have to issue a rule requiring a truthful, non-misleading summary and data-sharing diagram on covered operators’ websites, plus full terms in an electronically tagged format.
Not later than 360 days after the date of the enactment of this Act, the Commission shall issue a rule in accordance with section 553 of title 5, United States Code, with regard to a covered entity that publishes or has published a terms of service— (1) that requires the covered entity to include a truthful and non-misleading short-form terms of service summary statement on the website of the entity; (2) that requires the covered entity to include a truthful and non-misleading graphic data flow diagram on the website of the entity; and (3) that requires the covered entity to display the full terms of service of the entity in an interactive data format.
a standardized list of electronic tags that mark the information described in subsection (c)(3) within the terms of service of a covered entity
Requiring the summary would not itself create a new contractual obligation.
(b) No New Contractual Obligation The requirement to include a summary statement described in subsection (a)(1) does not create any new contractual obligation.
The summary would have to be accessible to people with low literacy and people with disabilities, and readable by computers. The Commission could require tables, icons, links, or other presentation methods. Presentation could vary by device or interface. The bill adopts the disability definition in section 3 of the Americans with Disabilities Act of 1990; that underlying definition is not supplied.
(A) shall be accessible to individuals with low levels of literacy and individuals with disabilities, be machine readable, and include tables, graphic icons, hyperlinks, or other means as the Commission may require; and (B) may be presented differently depending on the interface or type of device on which the statement is being accessed by the user.
(3) Disability The term disability has the meaning given the term in section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102).
The summary would appear at the top of the permanent terms-of-service page, with the data-sharing diagram immediately below it.
The summary statement described in subsection (a)(1) shall be placed at the top of the permanent terms of service page of the covered entity, and the graphic data flow diagram described in subsection (a)(2) shall be located immediately below such summary statement.
The summary would list the categories of sensitive information the operator handles and distinguish information required for basic service from information needed for extra features and future feature development. Handling information would include collecting, analyzing, organizing, retaining, and using it.
(A) The categories of sensitive information that the covered entity processes. (B) The sensitive information that is required for the basic functioning of the service and what sensitive information is needed for additional features and future feature development.
(6) Process The term process means any operation or set of operations performed on sensitive information, including collection, analysis, organization, structuring, retaining, using, or otherwise handling sensitive information.
Sensitive information would include health and biometric information, precise location, Social Security numbers, specified personal characteristics, communication content and participants, consumer-device audio and video recordings, and financial information. It would also include browsing information revealing activities over time or across websites or services the operator does not own or operate.
(7) Sensitive information The term sensitive information means any of the following: (A) Health information. (B) Biometric information. (C) Precise geolocation information. (D) Social security number. (E) Information concerning the race, color, religion, national origin, sex, age, or disability of an individual. (F) The content and parties to a communication. (G) Audio and video recordings captured through a consumer device. (H) Financial information, including a bank account number, credit card number, debit card number, or insurance policy number. (I) Online browsing history, which means information revealing online activities over time or across websites or online services not owned or operated by the covered entity.
The summary would explain users’ legal liabilities and rights transferred to the operator. Examples include mandatory arbitration, class action waivers, and licensing or selling users’ content. It would also cover waivers of the rights referenced in the bill as “moral rights,” whose underlying statutory text is not supplied.
(C) A summary of the legal liabilities of a user and any rights transferred from the user to the covered entity, such as mandatory arbitration, class action waiver, any licensing or sale by the covered entity of the content of the user, and any waiver of moral rights.
(5) Moral rights The term moral rights means the rights conferred by section 106A(a) of title 17, United States Code.
The summary would include earlier versions of the terms and records of changes. If the operator offers user deletion services, it would also provide directions for deleting sensitive information or stopping its use; this provision would not require every operator to offer those services.
(D) Historical versions of the terms of service and change logs. (E) If the covered entity provides user deletion services, directions for how the user can delete sensitive information or discontinue the use of sensitive information.
The summary would list breaches from the previous three years that were reported to consumers under existing federal and state laws. It would also describe the effort needed to read the full terms, such as through a total word count. The bill also gives an approximate time to read “the statement” as an example, leaving unclear whether that time estimate concerns the summary or the full terms.
(F) A list of data breaches from the previous 3 years reported to consumers under existing Federal and State laws. (G) The effort required by a user to read the entire terms of service text, such as through the total word count and approximate time to read the statement.
The Commission could require other information in the summary when it determines that information is necessary and the operator includes it in its terms. The rule would have to list that additional information.
(H) Any other information the Commission determines to be necessary if that information is included in the terms of service by the covered entity. (4) Additional information required by the Commission In the rule issued under subsection (a), the Commission shall include a list of other information the Commission determines to be necessary under paragraph (3)(H).
Within 360 days after enactment, the Commission would publish guidance for diagrams showing sensitive-information sharing with subsidiaries, corporate affiliates, and third parties. The bill’s definition of third party covers recipients of sensitive information but excludes the operator itself, its subsidiaries and affiliates, and its service providers.
(d) Guidance on graphic data flow diagrams Not later than 360 days after the date of the enactment of this Act, the Commission shall publish guidelines on how a covered entity can graphically display how the sensitive information of a user is shared with a subsidiary or corporate affiliate of such entity and how such sensitive information is shared with third parties.
(9) Third party The term third party means, with respect to a covered entity, a person— (A) to which the covered entity disclosed sensitive information; and (B) that is not— (i) the covered entity; (ii) a subsidiary or corporate affiliate of the covered entity; or (iii) a service provider of the covered entity.
Within 360 days after enactment, the Commission would also issue a rule requiring electronic tags within the terms. Those standardized tags would identify the information required in the summary; the bill gives Extensible Markup Language, or XML, as an example.
(e) Interactive data format terms of service Not later than 360 days after the date of the enactment of this Act, the Commission shall issue a rule in accordance with section 553 of title 5, United States Code, that requires a covered entity to tag portions of the terms of services of the entity according to an interactive data format.
(4) Interactive data format The term interactive data format means an electronic data format in which pieces of information are identified using an interactive data standard, such as eXtensible Markup Language (commonly known as XML), that is a standardized list of electronic tags that mark the information described in subsection (c)(3) within the terms of service of a covered entity.
Violations would be treated as violations of a Federal Trade Commission rule against unfair or deceptive practices. The Commission would enforce the requirements through the referenced Federal Trade Commission Act framework. Violators would be subject to that Act’s penalties and entitled to its privileges and immunities. The Commission’s other legal authority would remain available. The referenced Act is not supplied, so this source does not establish the full enforcement powers or penalty amounts.
A violation of this Act or a regulation promulgated under this Act shall be treated as a violation of a rule defining an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
The Commission shall enforce this section and the regulations promulgated under this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section.
Any person who violates this section or a regulation promulgated under this section shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act.
Nothing in this section shall be construed to limit the authority of the Commission under any other provision of law.
A state attorney general could sue on residents’ behalf when there is reason to believe a violating practice has affected or threatens an interest of at least 1,000 residents. Available requests would include stopping the practice, requiring compliance, obtaining damages, restitution or other compensation, and other relief the court considers appropriate.
In any case in which the attorney general of a State has reason to believe that an interest of at least 1,000 residents of that State has been or is threatened or adversely affected by the engagement of any person in a practice that violates this section or a regulation promulgated under this section, the attorney general of the State, as parens patriae, may bring a civil action on behalf of the residents of the State in a district court of the United States of appropriate jurisdiction— (i) to enjoin that practice; (ii) to enforce compliance with this section; (iii) to obtain damages, restitution, or other compensation on behalf of such residents; and (iv) to obtain such other relief as the court may consider to be appropriate.
A state attorney general would normally have to notify the Commission in writing and provide the complaint before suing. If advance notice is not feasible, notice would be required immediately upon filing. The Commission could join the case, be heard on all matters, and seek appeals.
the attorney general of a State shall notify the Commission in writing that the attorney general intends to bring a civil action under subparagraph (A) before initiating the civil action.
The notification required by subclause (I) with respect to a civil action shall include a copy of the complaint to be filed to initiate the civil action.
If it is not feasible for the attorney general of a State to provide the notification required by subclause (I) before initiating a civil action under subparagraph (A), the attorney general shall notify the Commission immediately upon instituting the civil action.
The Commission may— (I) intervene in any civil action brought by the attorney general of a State under subparagraph (A); and (II) upon intervening— (aa) be heard on all matters arising in the civil action; and (bb) file petitions for appeal.
State attorneys general would retain their state-law powers to investigate, administer oaths or affirmations, and compel witnesses or evidence. While a Commission enforcement case is pending, a state could not start a separate case under this bill against the same defendant for the same violation.
Nothing in this paragraph may be construed to prevent an attorney general of a State from exercising the powers conferred on the attorney general by the laws of that State to— (i) conduct investigations; (ii) administer oaths or affirmations; or (iii) compel the attendance of witnesses or the production of documentary and other evidence.
a State may not, during the pendency of that action, institute a separate action under subparagraph (A) against any defendant named in the complaint in the action instituted by or on behalf of the Commission for that violation.
The venue provision would allow state enforcement actions in a federal district court meeting the referenced location rules or another court with authority to hear the case, although the earlier authorization refers to federal district court. A separate provision about delivering court papers expressly refers to actions under paragraph (1), which addresses Commission enforcement, and permits service in any district where the defendant lives or can be found. The supplied text does not resolve these drafting questions.
the attorney general of the State, as parens patriae, may bring a civil action on behalf of the residents of the State in a district court of the United States of appropriate jurisdiction
(E) Venue; Service of process (i) Venue Any action brought under subparagraph (A) may be brought in— (I) the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28, United States Code; or (II) another court of competent jurisdiction. (ii) Service of process In an action brought under paragraph (1), process may be served in any district in which the defendant— (I) is an inhabitant; or (II) may be found.
(f) Enforcement (1) Enforcement by the Commission
For this section, “State” would include the District of Columbia, U.S. commonwealths, territories and possessions, and federally recognized Indian Tribes, as well as the states.
(8) State The term State means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each Federally recognized Indian Tribe.
The supplied official-actions snapshot, updated December 5, 2025, records introduction in the House and referral to the House Committee on Energy and Commerce on March 10, 2025. It does not establish any later legislative outcome.
Source snapshot updated 2025-12-05T21:55:05Z. 2025-03-10: Referred to the House Committee on Energy and Commerce. 2025-03-10: Introduced in House 2025-03-10: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-03-10. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials or resolve formal earmark status beyond the supplied evidence.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
An express exemption from the main regulatory requirements is identified below. Classification as a targeted benefit is not a judgment about its justification.
Businesses qualifying as small business concerns under the referenced Small Business Act definition would be excluded from covered-entity status, exempting them from the proposal’s disclosure requirements for covered operators. The supplied text does not reproduce the eligibility criteria.
(2) Covered entity The term covered entity— (A) means any person that operates a website located on the internet or an online service that is operated for commercial purposes; and (B) does not include a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)).
with regard to a covered entity that publishes or has published a terms of service— (1) that requires the covered entity to include a truthful and non-misleading short-form terms of service summary statement on the website of the entity; (2) that requires the covered entity to include a truthful and non-misleading graphic data flow diagram on the website of the entity; and (3) that requires the covered entity to display the full terms of service of the entity in an interactive data format.
Full text preserved for this analysis. Legislative record snapshot: Dec 5, 2025. How PlainBill uses AI