This bill, titled the Terms-of-service Labeling, Design, and Readability Act (TLDR Act), aims to enhance transparency and user understanding of online service agreements. It directs the Federal Trade Commission (FTC) to establish rules within 360 days requiring covered entities to publish a truthful and non-misleading short-form terms of service summary statement, a graphic data flow diagram, and their full terms of service in an interactive data format. A covered entity includes any commercial website or online service, but specifically excludes small business concerns. The short-form summary statement must be accessible to individuals with low literacy and disabilities, machine-readable, and placed prominently at the top of the permanent terms of service page. This summary must detail categories of sensitive information processed, what data is essential versus optional, and a summary of user legal liabilities or rights transferred, such as mandatory arbitration or content licensing. It also requires disclosure of historical versions, data breach lists from the past three years, and an estimate of the time needed to read the full terms of service. Additionally, the bill mandates a graphic data flow diagram, to be located immediately below the summary statement, illustrating how user sensitive information is shared with affiliates and third parties. The full terms of service must be presented in an interactive data format, allowing specific pieces of information to be identified and tagged using a standardized electronic format like XML. The FTC is also tasked with publishing guidelines for these graphic displays. Enforcement of the TLDR Act falls under the purview of both the FTC and State Attorneys General. Violations are treated as unfair or deceptive acts under the Federal Trade Commission Act, granting the FTC broad enforcement powers. State Attorneys General can also bring civil actions on behalf of at least 1,000 affected residents, seeking injunctions, damages, or other relief, with provisions for notifying and allowing intervention by the FTC. The bill defines "sensitive information" broadly to include health, biometric, financial, precise geolocation, and demographic data, among other categories.