Requires online service providers to publish clear, easy-to-find acceptable use policies that explain what behavior can lead to account suspension, termination, or limits, and to give users written notice and appeal options before restricting accounts in most cases. Providers must publish annual, machine- and human-readable reports on enforcement actions, and the Federal Trade Commission will issue guidance and enforce the law as an unfair or deceptive practice under the FTC Act. The law sets timelines (most rules take effect 180 days after enactment; reporting starts within one year), defines covered providers and terms, allows narrow emergency exceptions for immediate restrictions, and extends enforcement to nonprofit organizations as well as for-profit platforms.
The Act’s purpose is to ensure that consumers, businesses, and organizations seeking to use an online service provider’s products or services have sufficient information about the provider’s commercial business standards, processes, and policies related to the unilateral termination, suspension, or cancellation of user accounts or the user’s ability to use the products or services.
Stating that providing such information allows consumers to make informed choices about using or purchasing services or products and promotes a competitive marketplace for those services or products.
Defines “Commission” to mean the Federal Trade Commission.
Defines “nonprofit organization” to have the meaning given in section 201(i) of title 35, United States Code.
Defines “online service provider” as the provider of a public-facing website, online service, or online application directed to a consumer or organization that (i) requires a person to create a unique account or profile to use it, (ii) provides an internet-based product or service accessible through that site/service/application, and (iii) is engaged in interstate or foreign commerce.
Who is affected and how:
Platform operators (large and small): Must create or update acceptable use policies, implement notice-and-appeal workflows, collect and publish enforcement metrics, and bear compliance costs for publishing machine-readable reports and providing individualized notice. Smaller platforms and startups may face relatively higher per-user administrative burdens.
Platform users: Gain clearer information about rules, reasoned advance notice before losing access in most cases, and clearer appeal options (where offered). Users who engage in harm or break rules remain subject to enforcement, but will generally receive explanation of actions taken against them.
Nonprofit organizations that operate covered services: Brought under the same requirements and enforcement regime as for-profit platforms; must comply with policy publication, notices, and reporting obligations.
Federal Trade Commission: Will have new enforcement responsibility and must develop guidance within 180 days, increasing its workload and requiring rule-like guidance documents and oversight of reporting standards.
Public and researchers: Benefit from standardized, machine-readable enforcement data, enabling analysis of moderation practices and competition between services.
Public safety and law enforcement interactions: The law preserves the ability to act immediately to prevent imminent harm or to follow lawful court orders, so urgent safety actions remain possible.
Potential trade-offs and secondary impacts:
Last progress June 10, 2025 (8 months ago)
Introduced on June 10, 2025 by Rafael Edward Cruz
Read twice and referred to the Committee on Commerce, Science, and Transportation.
TERMS Act
Updated 17 hours ago
Last progress June 10, 2025 (8 months ago)