HR 3875
TERMS Act
TL;DR
Rep. Craig Goldman (R-TX) introduced the TERMS Act, which lands in the House Energy and Commerce Committee. Based on its title and referral, the bill appears to target commercial terms of service disclosures, likely including how companies communicate AI-related practices to consumers. Details remain limited while it sits in committee.
How This Might Impact Your Business
Consumer-facing digital platforms would likely face new transparency rules around terms of service, potentially including AI-driven features like recommendation engines and chatbots.
E-commerce, social media, and SaaS companies should expect disclosure obligations similar to prior 'TLDR' style bills that required plain-language summaries of user agreements.
Small businesses may or may not be exempt depending on final thresholds; past versions of similar bills carved out companies under certain revenue or user counts.
Enforcement would most likely fall to the FTC, meaning violations could trigger civil penalties and consent decrees rather than criminal exposure.
Companies using AI to generate or modify terms of service dynamically could face specific documentation and version-control requirements.
No compliance deadline exists yet because the bill is still in committee and has not received a hearing.
Impact remains speculative until the full text advances; the referral to Energy and Commerce signals a consumer protection framing rather than a national security or labor angle.
What Should You Do
Ask your legal and product teams to pull the full bill text from Congress.gov and flag any language on AI-generated disclosures or automated consumer notices.
Inventory your current terms of service, privacy policies, and AI feature disclosures to assess readiness for plain-language summary requirements.
Monitor the House Energy and Commerce Committee schedule for markup or hearings on HR 3875 over the next 60 to 90 days.
Benchmark against prior 'TLDR Act' proposals, since sponsors often reuse frameworks; your compliance posture for those bills likely transfers.
Assign one internal owner (typically General Counsel or Chief Privacy Officer) to track this bill and related state-level terms of service legislation.
Who It Affects
Sponsors
Status Timeline
committee
Referred to the House Committee on Energy and Commerce.
June 10, 2025