TERMS Act

Summary

Requires online platforms to be more transparent about when and why they suspend, limit, or terminate user accounts and to publish annual reports about enforcement actions. Platforms must post clear acceptable-use policies, give advance notice before most account restrictions (with narrow exceptions), provide or disclose appeal processes, and report enforcement counts and sources; the Federal Trade Commission enforces violations.

• Requires online service providers to publish concise acceptable-use policies explaining what actions can trigger account restrictions and how enforcement works.
• Most providers must give at least 7 days’ advance written notice before suspending or terminating accounts, except for safety or court-order emergencies.
• Providers must offer or state whether an appeal process exists and allow users to opt to make restriction notices public.
• Annual public enforcement reports are required in human- and machine-readable formats, with counts by alert source, exact policy provision violated, enforcement action type, appeals, and reversals.
• Reporting must categorize enforcement actions by the exact policy provision and by the source of the alert (e.g., user complaint, automated tool, government entity, nonprofit).
• Violations are enforced by the Federal Trade Commission as unfair or deceptive acts or practices, with the FTC issuing compliance guidance within 180 days.
• Nonprofit organizations are explicitly included within the definition of covered online service providers.
• Providers must give advance notice to users of material changes to the required policy information.
• Guidance from the FTC is nonbinding and cannot be the sole basis for enforcement absent a statutory violation; compliance with guidance can be used as evidence of compliance.