Luján, Cassidy, Trahan Reintroduce Bipartisan, Bicameral Legislation to Increase Online Transparency, Simplify User Agreements

Washington, D.C. – Today, U.S. Senators Ben Ray Luján (D-N.M.) and Bill Cassidy, M.D. (R-LA) and U.S. Representative Lori Trahan (MA-03) announced the reintroduction of the Terms-of-service Labeling, Design and Readability (TLDR) Act to require commercial websites and mobile apps to create a simple, readable, and accessible summary of their terms-of-service agreements.

“Americans deserve the ability to make informed decisions online without having to navigate confusing pages of legal jargon,” said Senator Luján, Ranking Member of the Senate Commerce Subcommittee on Telecommunications and Media. “Far too many companies take advantage of consumers by burying critical details about their data policies and shield themselves from legal liability in complicated terms-of-service agreements. The TLDR Act will end these harmful practices and help empower and protect consumers. Informing consumers is a bipartisan issue, and I’m proud to join my colleagues to provide real choice online.”

“Nobody is going to read pages of legal jargon. Companies should be required to provide terms of service that people without a law degree can understand,” said Dr. Cassidy. “Americans have the right to know how their data is collected and used.”

“Consumers shouldn’t have to wade through pages of dense legal jargon just to use a website or app,” said Congresswoman Lori Trahan. “Right now, companies force users into an all-or-nothing choice: agree to everything or lose access entirely. No negotiation, no alternatives, no real choice. They exploit this imbalance by burying critical terms in confusing contracts, knowing most people don’t have the time to sift through them just to send a message or make a quick purchase. The TLDR Act puts power back in consumers’ hands by requiring companies to provide clear, transparent summaries of their terms – something the American people overwhelmingly support.”

A 2012 study found that the average American would take 76 work days to read the agreements for the technology companies they use. The TLDR Act would require that online companies, with the exception of small businesses, include a nutrition label-style summary table at the top of their terms of service and include machine-readable tags to make the agreements more accessible for consumers and researchers alike. This legislation will also require the summaries to inform consumers on how their data is collected and shared with third parties. Further, the legislation would authorize the Federal Trade Commission (FTC) to issue guidance and enforce compliance.

Full text of the bill is available here.

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