Senator Bill Cassidy | Sen. Bill Cassidy Official Website
Senator Bill Cassidy | Sen. Bill Cassidy Official Website
U.S. Senators Bill Cassidy and Ben Ray Luján, along with U.S. Representative Lori Trahan, have introduced the Terms-of-Service Labeling, Design and Readability (TLDR) Act. This legislation aims to enhance online transparency by mandating that commercial websites and mobile applications provide a clear and accessible summary of their terms-of-service agreements. Small businesses are exempt from this requirement.
Senator Cassidy emphasized the need for simplicity in user agreements: "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." He highlighted the importance of informing Americans about how their data is collected and used.
Senator Luján pointed out the difficulties consumers face with current terms-of-service agreements: "Americans deserve the ability to make informed decisions online without having to navigate confusing pages of legal jargon." He noted that many companies obscure critical details about data policies within complex agreements, thus shielding themselves from liability. The TLDR Act seeks to eliminate these practices, empowering consumers by providing them with real choices online.
Representative Trahan addressed the lack of options currently available to users: "Consumers shouldn’t have to wade through pages of dense legal jargon just to use a website or app." She criticized companies for forcing users into an all-or-nothing agreement, exploiting this imbalance by hiding important terms in complicated contracts. The TLDR Act intends to return power to consumers by requiring clear summaries of terms, which she claims has widespread public support.
A study conducted in 2012 revealed that it would take an average American 76 workdays to read through all the technology-related agreements they encounter. The proposed legislation would require companies to present a nutrition label-style summary table at the beginning of their terms-of-service documents and include machine-readable tags for better accessibility for both consumers and researchers. Additionally, it mandates that these summaries disclose how consumer data is collected and shared with third parties. The Federal Trade Commission (FTC) would be authorized under this act to issue guidance and enforce compliance.