S.915 - Terms-of-service Labeling, Design, and Readability Act; TLDR Act (119th Congress)
Summary
S.915, the TLDR Act, aims to improve transparency and readability of online terms of service agreements. It mandates that covered entities (those operating commercial websites or online services, excluding small businesses) provide short-form summaries, graphic data flow diagrams, and interactive data formats of their terms of service. The bill directs the Federal Trade Commission (FTC) to issue rules and guidelines for compliance and enforcement.
Expected Effects
The TLDR Act will likely lead to increased user awareness and understanding of terms of service agreements. This could empower users to make more informed decisions about their data and online activity. It will also likely increase compliance costs for covered entities.
Potential Benefits
- Increased transparency regarding data usage and user rights.
- Improved accessibility of terms of service for individuals with low literacy or disabilities.
- Enhanced user control over personal information.
- Clearer understanding of legal liabilities and rights transfers.
- Easier comparison of terms of service across different platforms.
Potential Disadvantages
- Increased compliance costs for businesses, potentially leading to higher prices for consumers.
- Potential for overly simplistic summaries that do not fully capture the complexity of terms of service.
- Possible legal challenges regarding the interpretation and enforcement of the summary requirements.
- The definition of 'sensitive information' could be debated and may need updating as technology evolves.
- Small businesses are exempt, which could create an uneven playing field.
Constitutional Alignment
The bill aligns with the spirit of the Constitution by promoting informed consent and potentially protecting individual privacy, although the Constitution does not explicitly address online terms of service. The First Amendment protects freedom of speech, but this bill does not appear to infringe upon that right, as it focuses on disclosure requirements rather than content restrictions. The Commerce Clause (Article I, Section 8) provides Congress with the power to regulate interstate commerce, which could be used to justify federal regulation of online terms of service.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).