2. Terms of Service

PiperChat gathers attention from investors and a steady stream of daily active users (DAUs), while Richard keeps working on his "new internet" project. Richard finds that Dinesh has blocked him from PiperChat's data repository, violating a verbal agreement. After Big Head gives him login access, Richard learns that a third of PiperChat's users are children, and the app's terms of service never included parental permission. This violates the Children's Online Privacy Protection Act (COPPA) and can incur a total penalty of $21 billion. Meanwhile, Barker embraces his demotion to the data center underground, but Belson is suspicious and spies on his video chat sessions.

Since Barker uses PiperChat, with unbreakable encryption, Belson determines to acquire the company. He accuses Dinesh of stealing Hooli Chat's tech and threatens lawsuits, demanding he sign over the company – without a legal assessment. Dinesh does so, knowing that this will make Hooli responsible for the $21 billion fine. Meanwhile, Erlich learns that Jian-Yang has investment meetings and makes a deal with him for 10% of his company; later, he finds out the app is not about Oculus VR but about recipes to cook octopus.