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Setting the policy means Google ChromeOS downloads the Terms of Service and presents them to users whenever a device-local account session starts. Users can only sign in to the session after accepting the Terms of Service.
Leaving the policy unset means no Terms of Service appear.
The policy should be set to a URL from which Google ChromeOS can download the Terms of Service. The Terms of Service must be plain text, served as MIME type text/plain. No markup is allowed.