S2010119th CongressWALLET

TERMS Act

Sponsored By: Senator Ted Cruz

Introduced

Summary

Transparency and due process for online account restrictions. The TERMS Act would require online service providers to publish clear acceptable-use rules and give users advance written notice and appeal information before restricting accounts.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Advance notice before account restrictions

If enacted, platforms would have to give written notice before restricting an account, except to comply with a court order, federal law, or to prevent imminent death or serious harm. Notices must state the exact act, how it violated the policy, whether you can appeal, and the appeal process. A provider is treated as having given notice if it makes a good-faith effort to notify you not later than 7 days before restriction. These notice rules would take effect 180 days after enactment.

Annual public reports on enforcement

If enacted, platforms would publish a public enforcement report within one year and then annually. Reports must be human- and machine-readable and openly licensed. They must show counts by alert source, the number of restrictions (terminations, suspensions, limited access, warnings), and the number of appeals and reversals. Reports must also categorize actions by the exact policy provision violated and by the source of the alert.

Clear acceptable use rules for platforms

If enacted, online services would have to post an easy-to-find acceptable use policy within 180 days. The policy would list prohibited acts, explain how rules are enforced (including third parties), and say if appeals are allowed or not. It would say whether off-site acts can lead to restriction and require advance notice to users if the policy changes materially.

Defines which websites must follow rules

If enacted, the bill would define who counts as an "online service provider" and who is a "user." It would cover sites or apps that require a unique account, offer internet-based services, and operate across states or countries. The bill would define "restrict" as terminating, suspending, or limiting a user's account. These definitions would apply even to entities that are not for profit or that do not sell only to the general public.

Federal Trade Commission enforcement rules

If enacted, violations would be treated as unfair or deceptive acts under the Federal Trade Commission Act, and the FTC could enforce the bill. The FTC would also apply enforcement to nonprofit organizations and must issue compliance guidance within 180 days. The guidance would not by itself create private legal rights, and enforcement actions must allege specific violations of the bill.

Sponsors & CoSponsors

Sponsor

Ted Cruz

TX • R

Cosponsors

  • Marsha Blackburn

    TN • R

    Sponsored 6/10/2025

  • Katie Britt

    AL • R

    Sponsored 6/10/2025

  • Tom Cotton

    AR • R

    Sponsored 6/10/2025

  • Mike Crapo

    ID • R

    Sponsored 6/10/2025

  • Cynthia Lummis

    WY • R

    Sponsored 6/10/2025

  • Roger Marshall

    KS • R

    Sponsored 6/10/2025

  • James Risch

    ID • R

    Sponsored 6/10/2025

  • Eric Schmitt

    MO • R

    Sponsored 6/10/2025

  • Mike Lee

    UT • R

    Sponsored 7/28/2025

Roll Call Votes

No roll call votes available for this bill.

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