119-hr3875

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3875 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3875

 To require online service providers to disclose their acceptable use 
policies, provide users with written notice before the termination of a 
user's account, and publish an annual report detailing actions taken to 
 enforce their acceptable use policies, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 10, 2025

 Mr. Goldman of Texas (for himself and Mr. Weber of Texas) introduced 
 the following bill; which was referred to the Committee on Energy and 
 Commerce

_______________________________________________________________________

 A BILL

 To require online service providers to disclose their acceptable use 
policies, provide users with written notice before the termination of a 
user's account, and publish an annual report detailing actions taken to 
 enforce their acceptable use policies, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Transparency in Enforcement, 
Restricting, and Monitoring of Services Act'' or the ``TERMS Act''.

SEC. 2. PURPOSE.

 The purpose of this Act is to ensure that consumers, businesses, 
and organizations seeking to use the products or services of an online 
service provider have sufficient information regarding the online 
service provider's commercial business standards, processes, and 
policies with respect to the unilateral termination, suspension, or 
cancellation of user accounts or ability to use the online service 
provider's products or services. Such information allows consumers to 
make informed choices regarding their decision to use or purchase the 
services or products of an online service provider and promotes a 
competitive marketplace for such products or services.

SEC. 3. DEFINITIONS.

 In this Act:

    (1) Commission.--The term ``Commission'' means the Federal 
 Trade Commission.

    (2) Nonprofit organization.--The term ``nonprofit 
 organization'' has the meaning given such term in 

section 201
            (i) of title 35, United States Code.

    (3) Online service provider.--The term ``online service 
 provider''--
        (A) means the provider of a public-facing website, 
 online service, or online application directed to a 
 consumer or organization that--
            (i) requires any person who wishes to use 
 the website, online service, or online 
 application to create a unique account or 
 profile for such website, service, or 
 application;
            (ii) provides an internet-based product or 
 service that is accessible through the website, 
 online service, or online application; and
            (iii) is engaged in interstate or foreign 
 commerce; and
        (B) includes any entity described in subparagraph
        (A) , regardless of whether--
            (i) offering a product or service to the 
 general public is the sole source of income or 
 principal business of such entity; or
            (ii) the entity earns a profit on a product 
 or service.

    (4) Restrict.--The term ``restrict'', with respect to a 
 user, means an online service provider's termination or 
 suspension of a user's account or profile on the online service 
 provider's website, online service, or online application, or 
 limitation of the user's access thereto based on a 
 determination that the user violated the online service 
 provider's acceptable use policy.

    (5) User.--The term ``user'' means, with respect to an 
 online service provider, a person who registers an account or 
 creates a profile on the website, online service, or online 
 application of the online service provider.

SEC. 4. DISCLOSURE OF ACCEPTABLE USE POLICIES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act and subject to subsection

    (b) , an online service 
provider shall publicly disclose in an easily accessible manner, such 
as within terms of service available on the online service provider's 
website, an acceptable use policy that concisely and accurately 
describes, in clear language, information regarding the standards, 
processes, and policies of the online service provider with respect to 
any decision by the online service provider to restrict a user.

    (b) Required Information.--For purposes of subsection

    (a) , an 
online service provider shall include the following information in an 
acceptable use policy:

    (1) An explanation of what specific acts or practices are 
 prohibited by the online service provider that could lead to a 
 decision by the online service provider to restrict a user.

    (2) An explanation of how the online service provider 
 enforces the acceptable use policy, including any third party 
 the online service provider relies upon, in whole or in part, 
 to assist in the enforcement of the acceptable use policy by 
 the online service provider.

    (3) Either--
        (A) an explanation of how a user can appeal, if 
 applicable, a decision by an online service provider to 
 restrict a user; or
        (B) if the online service provider does not permit 
 an appeal or reconsideration of a decision to restrict 
 a user, a statement that such decision is not 
 appealable or subject to reconsideration.

    (4) An explanation of whether acts or practices a user 
 commits entirely outside of the website, online service, or 
 online application of the online service provider, such as 
 social media posts, public statements, media publications, and 
 third-party resources, may be a sufficient basis alone or in 
 combination with other information to restrict a user.

    (5) An explanation of the online service provider's 
 standards, processes, and policies with respect to the notice 
 requirement described in 

section 5.
            (c) Changes to Acceptable Use Policies.--If an online service 
provider makes a material change to its acceptable use policy that 
would result in a material change to any information described in 
subsection

    (b) , the online service provider shall, taking into account 
available technology, provide advance notice to each user.

SEC. 5. ADVANCE WRITTEN NOTICE PRIOR TO TERMINATION OR SUSPENSION.

    (a) Notice Requirement.--

    (1) In general.--Except as described in subsection

    (b) , an 
 online service provider shall provide advance written notice to 
 a user in violation of the online service provider's acceptable 
 use policy prior to restricting the user.

    (2) Required information.--The advance written notice 
 required under paragraph

    (1) shall include the following 
 information:
        (A) The specific act or practice of the user that 
 led to the decision to restrict the user.
        (B) A description of how the act or practice 
 identified in subparagraph
        (A) violated the acceptable 
 use policy.
            (C) Whether the user has an option to appeal the 
 decision, and, if so, a description of the process for 
 how the user can appeal the online service provider's 
 decision, consistent with the acceptable use policy.
            (D) A description of the option for the user to 
 elect that the online service provider publicly 
 disclose such written notice as described in paragraph

    (4) .

    (3) Advance written notice.--
        (A) In general.--For the purposes of this section, 
 an online service provider will be deemed to have 
 provided an advance written notice to a user if such 
 provider makes a good faith effort to notify the user 
 not later than 7 days prior to restricting the user.
        (B) Good faith effort.--For the purposes of 
 subparagraph
        (A) , a good faith effort may include--
            (i) a notification to the most recent email 
 address or other contact information the user 
 provided to the online service provider; or
            (ii) if the online service provider does 
 not have any contact information for the user, 
 a prominent notice that is displayed to the 
 user on the online service provider's website, 
 service, or application when the user next 
 accesses the user's account or profile on such 
 website, service, or application.

    (4) Public disclosure.--An online service provider shall--
        (A) provide to any user issued a written notice 
 under paragraph

    (1) an option for the online service 
 provider to publicly disclose such notice; and
        (B) if such user chooses to have such notice 
 publicly disclosed, publish such notice on the website 
 of the online service provider.

    (b) Exceptions for Court Action or Imminent Risk of Harm.--An 
online service provider may restrict a user without advance written 
notice if--

    (1) such restriction was done to--
        (A) comply with a lawful order of a court of 
 competent jurisdiction; or
        (B) protect against an imminent risk of--
            (i) death;
            (ii) a serious physical injury; or
            (iii) a serious health risk; and

    (2) the online service provider provides the user the 
 information required by subsection

    (a)

    (2) and publicly 
 discloses the written notice at the same time that the provider 
 restricts the user or as soon as practicable thereafter.
            (c) Effective Date.--The requirements of this section shall take 
effect on the date that is 180 days after the date of enactment of this 
Act.

SEC. 6. REPORTING REQUIREMENTS.

    (a) Annual Report.--Not later than 1 year after the date of 
enactment of this Act and annually thereafter on a date to be 
determined by each online service provider, an online service provider 
shall publish, with an open license, in both a format easily read by 
humans and a machine-readable format, in a location on its public 
website that is easily accessible to users and visitors of such 
website, and consistent with the requirements described in subsections

    (b) and
            (c) , a report detailing actions taken to enforce the online 
service provider's acceptable use policy.

    (b) Report Requirements.--The report required under subsection

    (a) shall include the following information with respect to the applicable 
reporting period:

    (1) The total number of instances in which the online 
 service provider was alerted of a potential violation of the 
 acceptable use policy by--
        (A) a user complaint;
        (B) an employee of, or a person contracting with, 
 the online service provider;
            (C) an internal automated detection tool of the 
 online service provider;
            (D) a government entity, including the specific 
 office or entity that alerted the online service 
 provider;
        (E) a nonprofit organization; or
        (F) any other person.

    (2) Subject to subsection
            (c) , the number of instances in 
 which the online service provider took steps to restrict a 
 user, including the number of instances in which the online 
 service provider--
        (A) terminated a user's account or profile on the 
 online service provider's website, online service, or 
 online application or otherwise permanently limited 
 access to or use of the product or service of the 
 online service provider;
        (B) suspended a user's account or profile on the 
 online service provider's website, online service, or 
 online application;
            (C) limited a user's access to the online service 
 provider's website, online service, or online 
 application; or
            (D) took any other action, such as issuing a 
 warning, in response to a violation of the acceptable 
 use policy.

    (3) The number of instances in which a user appealed the 
 online service provider's decision.

    (4) The number of appeals that resulted in a reversal of 
 the online service provider's decision.
            (c) Categorization of Actions Taken.--The information described in 
subsection

    (b)

    (2) shall be categorized by--

    (1) the exact provision of the acceptable use policy that 
 was violated by a user; and

    (2) the source of the alert of the potential violation of 
 the acceptable use policy as described in subsection

    (b)

    (1) .

SEC. 7. ENFORCEMENT.

    (a) Enforcement by the Commission.--

    (1) Unfair or deceptive acts or practices.--A violation of 
 this Act shall be treated as a violation of a rule defining an 
 unfair or deceptive act or practice under 

section 18

    (a)

    (1)
        (B) of the Federal Trade Commission Act (15 U.S.C. 57a

    (a)

    (1)
        (B) ).

    (2) Powers of the commission.--
        (A) In general.--Except as provided in subparagraph
            (C) , the Commission shall enforce this Act 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 Act.
        (B) Privileges and immunities.--Except as provided 
 in subparagraph
            (C) , any online service provider who 
 violates this Act or a regulation promulgated under 
 this Act shall be subject to the penalties and entitled 
 to the privileges and immunities provided in the 
 Federal Trade Commission Act (15 U.S.C. 41 et seq.).
            (C) Nonprofit organizations.--Notwithstanding 
 

section 4, 5

    (a)

    (2) , or 6 of the Federal Trade 
 Commission Act (15 U.S.C. 44, 45

    (a)

    (2) , 46) or any 
 jurisdictional limitation of the Commission, the 
 Commission shall also enforce this Act, in the same 
 manner provided in subparagraphs
        (A) and
        (B) , with 
 respect to organizations not organized to carry on 
 business for their own profit or that of their members.
            (D) Authority preserved.--Nothing in this 
 subsection shall be construed to limit the authority of 
 the Commission under any other provision of law.

    (b) Commission Guidance.--

    (1) In general.--Not later than 180 days after the date of 
 enactment of this Act, the Commission shall issue guidance to 
 assist online service providers in complying with the 
 requirements of this Act, which shall include the provision of 
 best practices and examples.

    (2) Limitation on guidance.--No guidance issued by the 
 Commission with respect to this Act shall--
        (A) confer any rights on any person, State, or 
 locality; or
        (B) operate to bind the Commission or any person to 
 the approach recommended in such guidance.

    (3) Use in enforcement actions.--In any enforcement action 
 brought pursuant to this Act--
        (A) the Commission--
            (i) shall allege a specific violation of a 
 provision of this Act; and
            (ii) may not base such enforcement on, or 
 execute a consent order based on, practices 
 that are alleged to be inconsistent with any 
 guidance issued by the Commission with respect 
 to this Act, unless the practices are alleged 
 to violate a provision of this Act; and
        (B) a person may use compliance with any such 
 guidance as evidence of compliance with this Act.
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