TERMS Act
The TERMS Act would require online service providers to be more transparent and accountable about how they restrict or terminate user accounts. Specifically, providers would have to publicly disclose their acceptable use policies in plain language, explain how they enforce those policies (including any third parties they rely on), outline how users can appeal decisions, and describe how cross-platform actions (like off-site posts) may affect restrictions. In addition, providers must give users advance written notice before restricting or terminating an account (with certain exceptions) and offer an option to publicly disclose that notice if the user chooses. The bill also requires annual, open-licensed reports detailing enforcement actions, including how many restrictions were imposed, appeals, reversals, and the sources of alerts triggering action. Enforcement would be handled by the Federal Trade Commission (FTC), with guidance to help providers comply. Overall, the bill aims to increase transparency around why and how online services restrict users, improve due-process in moderation decisions, and shed light on enforcement trends to promote competition and informed decision-making by consumers and businesses.
Key Points
- 1Disclosure of acceptable use policies: Within 180 days after enactment, online service providers must publicly disclose an easily accessible acceptable use policy that clearly explains prohibited acts, enforcement methods (including reliance on third parties), appeal options, off-site conduct considerations, and how notice works.
- 2Advance written notice prior to restriction: Before restricting a user, providers must give advance written notice detailing the offending act, how it violated policy, whether the user can appeal, and whether they can publicly disclose the notice. A good-faith effort to notify at least 7 days in advance is required, using email or prominent on-site notices if contact info is unavailable.
- 3Public disclosure option for notices: Users can choose to publicly disclose the written notice when they are restricted, with the notice published on the provider’s website.
- 4Changes to policy require advance notice: When an online service provider makes a material change to its acceptable use policy, it must provide advance notice to users about the change.
- 5Annual reporting and data transparency: Providers must publish an annual enforcement report (open license, human- and machine-readable) detailing alerts, restrictions (including terminations, suspensions, or access limitations), user appeals and reversals, and categorization by policy provisions and alert sources.
- 6Enforcement and guidance: The FTC enforces the Act as an unfair or deceptive act or practice, with guidance issued within 180 days to help compliance. Guidance cannot create binding rights beyond the statute, and enforcement actions must be based on actual provisions of the Act (though following guidance can be used as evidence of compliance).