The Terms-of-Service Labeling, Design, and Readability Act (TLDR Act) requires large online companies to provide consumers with a clear, easy-to-read summary of their terms of service within one year of the bill's enactment. The summaries must be accessible to people with disabilities and low literacy levels, and must include information about what sensitive data the company collects, which data is required versus optional, legal liability restrictions like mandatory arbitration, past data breaches, and how long it takes to read the full terms. The bill also requires companies to provide a visual diagram showing how user data flows to subsidiaries and third parties, and to tag their full terms of service in an interactive digital format that allows easy searching and comparison. The Federal Trade Commission will create and enforce the rules, with state attorneys general also authorized to bring lawsuits on behalf of residents, and violations are treated as unfair or deceptive business practices. The law applies to all commercial websites and online services except small businesses as defined under the Small Business Act.
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