TERMS Act
The TERMS Act would require online service providers to be transparent about how they regulate user behavior and when they can restrict access to their services. Introduced in the 119th Congress by Rep. Goldman (with Rep. Weber) and referred to the House Committee on Energy and Commerce, the bill focuses on three main obligations for providers: publicly disclose a detailed acceptable use policy (AUP); provide users with advance written notice before restricting or terminating an account (with limited exceptions); and publish an annual, machine- and human-readable enforcement report. The goal is to help consumers and organizations understand the standards, how enforcement works, and the risks to their access, in order to promote informed choices and a competitive marketplace. The bill empowers the Federal Trade Commission to enforce these requirements, and it directs the FTC to issue guidance within 180 days. Notably, the act broadly defines “online service provider” to cover many types of platforms that require accounts and host online products or services, including nonprofits, and sets out specific disclosure, notice, and reporting timelines. There are also orderly exceptions for court orders and imminent harm, plus a 180-day runway before certain requirements kick in.
Key Points
- 1Public disclosure of an acceptable use policy: Providers must, within 180 days of enactment, publish an easily accessible AUP that explains prohibited acts, enforcement methods (including third parties used), appeals (or statement that appeals are not allowed), relevance of off-site conduct, and how notice is handled.
- 2Advance written notice before restriction: Generally, providers must give a user written notice before restricting their account, including the exact act, how it violated policy, whether an appeal is available and how to pursue it, and whether the user can opt to publicly disclose the notice. Notice is deemed given if the provider makes a good faith effort at least 7 days before restriction.
- 3Public disclosure option for notices: Users may choose to have the written notice publicly disclosed on the provider’s site.
- 4Exceptions for timing: Court orders and imminent harm (death, serious injury, serious health risk) allow restriction without advance notice, but the required notice information must still be provided and disclosed as soon as practicable.
- 5Annual enforcement reporting: Providers must publish an open-license, machine-readable and human-readable annual report detailing enforcement actions, sources of alerts (complaints, internal tools, government, nonprofits, etc.), counts of restrictions (terminations, suspensions, access limitations, warnings), and appeal statistics, categorized by policy violation and alert source.
- 6FTC enforcement: Violations are treated as unfair or deceptive acts under the FTC Act, with FTC enforcing the act in line with its existing authorities; nonprofit organizations are also subject to enforcement.
- 7FTC guidance and use in enforcement: The FTC will issue guidance within 180 days, but guidance cannot create new rights or bind enforcement beyond the act itself. Compliance with guidance can be used as evidence of compliance, and enforcement must allege specific statutory violations.
- 8Effective dates: AUP disclosure and notice provisions generally become effective 180 days after enactment; the reporting requirements begin within one year; most provisions apply prospectively from enactment.