Bill
SB 5855
WA requires a plain-language summary at the start of electronic agreements (EULAs, SaaS, privacy policies); AG enforces under the CPA; no private action.
SB 5855 (Washington) – Summary of Provisions and Impact
Overview
- Title: Protecting consumers by requiring summaries for certain agreements and policies presented in an electronic format.
- Purpose: To protect consumers who are asked to consent to lengthy and complex electronic terms by requiring a short, plain-language summary at the start of certain electronic agreements and policies. The aim is to improve transparency and fairness in consumer contracting.
- Status (as of hearing): Public hearing in the Senate Committee on Environment, Energy & Technology (January 16, 2024, 1:30 PM). Previous actions include first reading and referral.
What the bill would require
- Plain-language summary
- Every electronic user agreement, end-user license agreement (EULA), software-as-a-service (SaaS) agreement, or privacy policy must include a plain-language summary.
- The summary must appear conspicuously at the beginning of the agreement or policy.
- The summary may not exceed 100 words.
- The term “electronic” uses the same definition as RCW 1.80.010.
- Scope of agreements
- Applies to:
- User agreements
- End-user license agreements (EULAs)
- Software-as-a-service (SaaS) agreements
- Privacy policies
- Enforcement and remedies
- Enforcement authority is limited to the Washington Attorney General under the state Consumer Protection Act (CPA), RCW 19.86.
- For AG actions, the bill classifies the covered practices as matters of public interest, and violations are considered unfair or deceptive acts or practices, or unfair methods of competition, for CPA purposes.
- The bill explicitly states that it does not create a private right of action and does not incorporate RCW 19.86.093.
- Effective date and transitional provisions
- The act specifies that it does not apply to agreements or policies executed before the act’s effective date.
- The text provided does not specify an exact effective date; the restrictions imply that new agreements after enactment would be subject to the requirement.
- Legislative structure
- Creates a new chapter in Title 19 RCW to codify these requirements.
- Section 3 clarifies the relationship to the CPA and public-interest considerations; Sections 1 and 2 establish findings and the summary requirement; Section 4 addresses transitional applicability.
Who would be affected
- Businesses and service providers that offer electronic agreements or privacy policies, including tech firms, software vendors, online platforms, and any entity using electronic terms of service or privacy disclosures.
- Washington consumers who interact with such electronic agreements, as the summaries are designed to aid understanding before consent.
Key definitions and clarifications
- “Electronic” format follows RCW 1.80.010.
- The summary requirement applies at the beginning of the relevant electronic document.
- The bill does not permit a private civil action under this chapter; enforcement rests with the Attorney General under the CPA.
Legislative history and actions (as provided)
- Prefiled: December 15, 2023
- First reading: January 8, 2024 (referred to the Senate Committee on Environment, Energy & Technology)
- Public hearing: January 16, 2024 (1:30 PM)
Notes for readers
- The 100-word limit is a strict constraint intended to keep summaries concise and practical.
- The bill emphasizes consumer protection and fair dealing by reducing information asymmetry in online contracting.
- If enacted, the measure would add new compliance obligations for electronic agreements and would empower the AG to pursue enforcement under the CPA.
Compiled from official sources — confirm details with the bill’s official record.
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