Sponsors
The bill improves transparency, accessibility, and user control over online data at scale, but does so by imposing compliance requirements and disclosure obligations that increase costs and legal exposure for businesses (especially smaller firms) and risk oversimplifying complex legal terms for users.
Internet users — will get short, standardized summaries plus visual data‑flow diagrams that make it easier to understand what personal data sites collect and share before using services.
People with disabilities and low‑literacy users — will receive accessible and machine‑readable terms so they can understand website policies more easily.
Internet users and consumers — gain clearer, easier ways to delete sensitive information and to review recent breach histories, increasing individual control and ability to assess risk.
Covered businesses — will face meaningful compliance costs to redesign terms, create diagrams, tag data, and ensure accessibility, with those costs likely falling heaviest on small businesses and potentially reducing new entrants or product features.
Covered businesses and the market — mandated disclosures about business practices combined with stronger enforcement raise the risk of increased litigation and legal exposure for companies.
Consumers and taxpayers — greater enforcement activity and private‑state suits could increase legal and administrative costs that may be passed on to consumers or borne by taxpayers.
Based on analysis of 2 sections of legislative text.
Requires the FTC to mandate short, truthful summaries, data‑flow diagrams, and interactive machine‑readable full terms of service with specified disclosure topics.
Requires the Federal Trade Commission to write a rule (within 360 days of enactment) forcing companies that publish terms of service to display: a short, truthful, non‑misleading summary; a truthful graphic data‑flow diagram; and the full terms in an interactive, machine‑readable format. The rule sets placement, accessibility, machine‑readability, and content requirements for the summary and diagram and lists specific consumer‑facing information that must appear in terms (for example: categories of sensitive data collected, required vs optional data for features, deletion procedures, breach history, and certain legal waivers).
Introduced March 10, 2025 by Lori Trahan · Last progress March 10, 2025