This bill requires large commercial websites and online services to provide users with clear, easy-to-understand summaries of their terms of service. Within one year of enactment, the Federal Trade Commission must establish rules requiring covered entities to display a short-form summary statement at the top of their terms of service pages, along with a visual diagram showing how user data flows to subsidiaries and third parties. The summary must include key details such as what sensitive information is collected, which data is required versus optional, legal liabilities and rights waivers (like arbitration clauses), data breach history from the past three years, and how long it takes to read the full terms. The bill applies to all commercial websites and online services except small businesses, with enforcement handled by the Federal Trade Commission and state attorneys general, who can sue for violations. The bill does not create new legal obligations between companies and users—it simply requires clearer disclosure of existing terms.
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