Congress Proposes New Bill to Address Convoluted Terms of Use/Service Agreements
Congress Proposes a New TLDR Act Aimed at Verbose Terms of Use Agreements
In a move of bicameralism and bipartisanship, both the House of Representatives and the Senate have introduced the new TLDR Act proposal in their respective chambers, which addresses overly convoluted Terms of Use and Terms of Service agreements that span dozens of pages and often bank on the end-user agreeing to the terms without ever actually reading the agreement. As such, the TLDR Act looks to require such agreements to include a provision that explains the terms of the agreement in lay terms and to also expressly explain in plain language whether any personal information is being collected.
The Proposed TLDR Act Name Plays off Social Media Acronym
TLDR stands for “Terms-of-Service Labeling, Design and Readability. Internet users, however, may be more familiar with TLDR as an acronym for “too long, didn’t read.” In this situation, TLDR is often used on Internet forums when responding to preceding posts that users may consider to be too longwinded or unnecessarily verbose. And indeed, this appears to also be the gist for naming the Act TLDR as Representative Lori Trahan stated that, based on a study conducted a decade ago, it would take the average American seventy-six (76) work days to complete reading all of the agreements that they have agreed to concerning products that they use. As such, it only follows that as technology has improved and become more complex since ten years ago, so have Terms of Use/Service agreements.
TLDR Act to Promote Transparency and Easily Understood Terms
As such, Congress is asking websites, mobile apps, and other technology-related companies be required to include the aforementioned provisions that would make their agreements significantly easier to understand. Such a proposal is not without precedent as courts have often found contracts of adhesion, where two parties have similarly uneven bargaining power, to be unenforceable. While the TLDR Act is undoubtedly targeting tech giants such as Apple, which has long been known for its extensive Terms of Use/Service agreements, many experts believe that Apple will comply as it has increasingly moved towards championing transparency on the web and among app makers.
Key Takeaways on Proposed New TLDR Act
Congress has proposed a new TLDR Act which:
Was introduced in both the Senate and the House of Representatives;
Would require tech companies to include provisions that explain Terms of Use/Service Agreements in lay terms; and
Would require tech companies to include provisions, in lay terms, that explain whether personal and sensitive information is being collected.
For more information on terms of use agreements, see our Intellectual Property Litigation and Industry Focused Legal Solutions pages.