I 
117TH CONGRESS 
2D SESSION 
H. R. 6407 
To require the Federal Trade Commission to issue a short-form terms of 
service summary statement, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 13, 2022 
Mrs. TRAHAN introduced the following bill; which was referred to the 
Committee on Energy and Commerce 
A BILL 
To require the Federal Trade Commission to issue a short- 
form terms of service summary statement, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Terms-of-service La-
beling, Design, and Readability Act’’ or the ‘‘TLDR Act’’. 
SEC. 2. STANDARD TERMS OF SERVICE SUMMARY STATE-
MENT. 
(a) DEADLINE FOR TERMS OF SERVICE SUMMARY 
STATEMENT.—Not later than 360 days after the date of 
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the enactment of this Act, the Commission shall issue a 
rule under section 553 of title 5, United States Code— 
(1) that requires a covered entity to include a 
short-form terms of service summary statement on 
the website of the entity; 
(2) that requires a covered entity to include a 
graphic data flow diagram on the website of the en-
tity and includes guidance for such diagram; and 
(3) that requires a covered entity to display the 
full terms of service of the entity in an interactive 
data format. 
(b) REQUIREMENTS FOR SHORT-FORM TERMS OF 
SERVICE SUMMARY STATEMENT.— 
(1) IN
GENERAL.—The short-form terms of 
service summary statement described in subsection 
(a)— 
(A) shall be easy to understand, machine 
readable, and may include tables, graphic icons, 
hyperlinks, or other means determined by the 
Commission; and 
(B) may be established separately depend-
ing on the interface or type of device on which 
the statement is being accessed by the user. 
(2) LOCATION OF SUMMARY STATEMENT AND 
GRAPHIC
DATA
FLOW
DIAGRAM.—The summary 
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statement shall be placed at the top of the perma-
nent terms of service page of the covered entity and 
any graphic data flow diagram shall be located im-
mediately below the statement. 
(3) CONTENTS OF SUMMARY STATEMENT.—The 
summary statement shall disclose the following: 
(A) The effort required by a user to read 
the entire terms of service text, such as through 
the total word count and approximate time to 
read the statement. 
(B) The categories of sensitive information 
that the covered entity processes. 
(C) The sensitive information that is re-
quired for the basic functioning of the service 
and what sensitive information is needed for ad-
ditional features and future feature develop-
ment. 
(D) A summary of the legal liabilities of a 
user and any rights transferred from the user 
to the covered entity, such as mandatory arbi-
tration, class action waiver, any licensing by the 
covered entity of the content of the user, and 
any waiver of moral rights. 
(E) Historical versions of the terms of 
service and change logs. 
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(F) If the covered entity provides user de-
letion services, directions for how the user can 
delete sensitive information or discontinue the 
use of sensitive information. 
(G) A list of data breaches from the pre-
vious 3 years reported to consumers under ex-
isting Federal and State laws. 
(H) Anything else determined to be nec-
essary by the Commission. 
(c) GUIDANCE
ON
GRAPHIC
DATA
FLOW
DIA-
GRAMS.—Not later than 360 days after the date of the 
enactment of this Act, the Commission shall publish guide-
lines on how a covered entity can graphically display how 
sensitive information of a user is shared with a subsidiary 
or corporate affiliate of such entity and how sensitive in-
formation is shared with third parties. 
(d) INTERACTIVE DATA FORMAT TERMS OF SERV-
ICE.—Not later than 360 days after the date of the enact-
ment of this Act, the Commission shall issue a rule under 
section 553 of title 5, United States Code, that requires 
a covered entity to tag portions of the terms of services 
of the entity according to an interactive data format. 
(e) ENFORCEMENT.— 
(1) UNFAIR
OR
DECEPTIVE
ACTS
OR
PRAC-
TICES.—A violation of this section or a regulation 
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promulgated under this section shall be treated as a 
violation of a regulation under section 18(a)(1)(B) 
of the Federal Trade Commission Act (15 U.S.C. 
57a(a)(1)(B)) regarding unfair or deceptive acts or 
practices. 
(2) POWERS OF THE COMMISSION.—The Com-
mission shall enforce this section and the regulations 
promulgated under this section in the same manner, 
by the same means, and with the same jurisdiction, 
powers, and duties as though all applicable terms 
and provisions of the Federal Trade Commission Act 
(15 U.S.C. 41 et seq.) were incorporated into and 
made a part of this section, and any person who vio-
lates this section or a regulation promulgated under 
this section shall be subject to the penalties and en-
titled to the privileges and immunities provided in 
the Federal Trade Commission Act. 
(3) ENFORCEMENT BY STATE ATTORNEYS GEN-
ERAL.—In any case in which the attorney general of 
a State has reason to believe that an interest of at 
least 1,000 residents of that State has been or is 
threatened or adversely affected by the engagement 
of any person in a practice that violates this section 
or a regulation promulgated under this section, the 
State, as parens patriae, may bring a civil action on 
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behalf of the residents of the State in a district 
court of the United States of appropriate jurisdic-
tion to— 
(A) enjoin that practice; 
(B) enforce compliance with the regulation; 
(C) obtain damage, restitution, or other 
compensation on behalf of residents of the 
State; or 
(D) obtain such other relief as the court 
may consider to be appropriate. 
(4) NOTICE.— 
(A) IN GENERAL.—Before filing an action 
under paragraph (3), the attorney general of 
the State involved shall provide to the Commis-
sion— 
(i) written notice of that action; and 
(ii) a copy of the complaint for that 
action. 
(B) EXEMPTION.— 
(i) IN GENERAL.—Subparagraph (A) 
shall not apply with respect to the filing of 
an action by an attorney general of a State 
under this subsection, if the attorney gen-
eral determines that it is not feasible to 
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provide the notice described in that sub-
paragraph before the filing of the action. 
(ii) NOTIFICATION.—In an action de-
scribed in clause (i), the attorney general 
of a State shall provide notice and a copy 
of the complaint to the Commission at the 
same time as the attorney general files the 
action. 
(5) REMOVAL TO FEDERAL COURT.—The Com-
mission may intervene in any action brought under 
paragraph (3) and remove the action to the appro-
priate United States district court. 
(f) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit the authority of the Com-
mission under any other provision of law. 
(g) DEFINITIONS.—In this section: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(2) COVERED ENTITY.—The term ‘‘covered en-
tity’’— 
(A) means any person that operates a 
website located on the internet or an online 
service, that is operated for commercial pur-
poses; and 
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(B) does not include a small business con-
cern (as defined in section 3 of the Small Busi-
ness Act (15 U.S.C. 632)). 
(3) INTERACTIVE
DATA
FORMAT.—The term 
‘‘interactive data format’’ means an electronic data 
format in which pieces of information are identified 
using an interactive data standard, such as eXten-
sible Markup Language (XML), that is a standard-
ized list of electronic tags that mark the information 
described in section 2(b)(3) within the terms of serv-
ice of a covered entity. 
(4) SENSITIVE INFORMATION.—The term ‘‘sen-
sitive information’’ means any of the following: 
(A) Health information. 
(B) Biometric information. 
(C) Precise geolocation information. 
(D) Social security number. 
(E) Information concerning the race, color, 
religion, national origin, sex, age, or disability 
of an individual. 
(F) The content and parties to a commu-
nication. 
(G) Audio and video recordings captured 
through a consumer device. 
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(H) Financial information, including a 
bank account number, credit card number, 
debit card number, or insurance policy number. 
(I) Online browsing history related to the 
information described in subparagraphs (A) 
through (H). 
(5) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, each 
commonwealth, territory, or possession of the United 
States, and each federally recognized Indian Tribe. 
(6) THIRD
PARTY.—The term ‘‘third party’’ 
means, with respect to a covered entity, a person— 
(A) to whom the covered entity disclosed 
sensitive information; and 
(B) is not— 
(i) the covered entity; 
(ii) a subsidiary or corporate affiliate 
of the covered entity; or 
(iii) a service provider of the covered 
entity. 
Æ 
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