Lord Clement-Jones Portrait Lord Clement-Jones (LD)
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My Lords, I strongly support the amendment in the names of the noble Lords, Lord Knight and Lord Stevenson, as well as my noble friend Lady Featherstone. The essence of the message from the noble Lord, Lord Knight, about the need for trust and the fact that you can gain trust through greater transparency is fundamental to this group.

The Joint Committee’s report is now a historical document. It is partly the passage of time, but it was an extraordinary way in which to work through some of the issues, as we did. We were very impacted by the evidence given by Frances Haugen, and the fact that certain things came to light only as a result of her sharing information with the Securities and Exchange Commission. We said at the time that:

“Lack of transparency of service providers also means that people do not have insight into the prevalence and nature of activity that creates a risk of harm on the services that they use”.


That is very much the sense that the noble Lord, Lord Stevenson, is trying to get to by adding scope as well.

We were very clear about our intentions at the time. The Government accepted the recommendation that we made and said that they agreed with the committee that

“services with transparency reporting requirements should be required to publish their transparency reports in full, and in an accessible and public place”.

So what we are really trying to do is to get the Government to agree to what they have already agreed to, which we would have thought would be a relatively straightforward process.

There are some other useful aspects, such as the review of effectiveness of the transparency requirements. I very much appreciate what my noble friend just said about not reading transparency reports. I read the oversight reports but not necessarily the transparency reports. I am not sure that Frances Haugen was a great advert for transparency reports at the time, but that is a mere aside in the circumstances.

I commend my noble friend Lady Featherstone’s Amendment 171, which is very consistent with what we were trying to achieve with the code of practice about violence against women and girls. That would fit very easily within that. One of the key points that my noble friend Lord Allan made is that this is for the benefit of the platforms as well. It is not purely for the users. Of course it is useful for the users, but not exclusively, and this could be a way of platforms engaging with the users more clearly, inserting more fresh air into this. In these circumstances it is pretty conclusive that the Government should adhere to what they agreed to in their response to the Joint Committee’s report.

Viscount Camrose Portrait The Parliamentary Under-Secretary of State, Department for Science, Innovation and Technology (Viscount Camrose) (Con)
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As ever, I thank all noble Lords who have spoken. I absolutely take, accept and embrace the point that transparency is wholly critical to what we are trying to achieve with the Bill. Indeed, the chandelier of transparency reports should be our shared aim—a greenhouse maybe. I am grateful for everyone’s contributions to the debate. I agree entirely with the views expressed. Transparency is vital in holding companies to account for keeping their users safe online. As has been pointed out, it is also to the benefit of the platforms themselves. Confident as I am that we share the same objectives, I would like to try to reassure noble Lords on a number of issues that have been raised.

Amendments 160A, 160B and 181A in the name of the noble Lord, Lord Knight of Weymouth, seek to require providers to make their transparency reports publicly available, subject to appropriate redactions, and to allow Ofcom to prevent their publication where it deems that the risks posed by drawing attention to illegal content outweigh the benefit to the public of the transparency report. Let me reassure the noble Lord that the framework, we strongly believe, already achieves the aim of those amendments. As set out in Clause 68, Ofcom will specify a range of requirements in relation to transparency reporting in a notice to categories 1, 2A and 2B. This will include the kind of information that is required in the transparency report and the manner in which it should be published. Given the requirement to publish the information, this already achieves the intention of Amendment 160A.

The specific information requested for inclusion within the transparency report will be determined by Ofcom. Therefore, the regulator will be able to ensure that the information requested is appropriate for publication. Ofcom will take into account any risks arising from making the information public before issuing the transparency notice. Ofcom will have separate information-gathering powers, which will enable the regulator to access information that is not suitable to be published in the public domain. This achieves the intention of Amendment 160B. There is also a risk of reducing trust in transparency reporting if there is a mechanism for Ofcom to prevent providers publishing their transparency reports.

Amendment 181A would require Ofcom to issue guidance on what information should be redacted and how this should be done. However, Ofcom is already required to produce guidance about transparency reports, which may include guidance about what information should be redacted and how to do this. It is important to provide the regulator with the flexibility to develop appropriate guidance.

Amendment 165 seeks to expand the information within the transparency reporting requirements to cover the scope of the terms of service set out by user-to-user providers. I very much agree with the noble Lord that it is important that Ofcom can request information about the scope of terms of service, as well as about their application. Our view is that the Bill already achieves this. Schedule 8 sets out the high-level matters about which information may be required. This includes information about how platforms are complying with their duties. The Bill will place duties on user-to-user providers to ensure that any required terms of service are clear and accessible. This will require platforms to set out what the terms of service cover—or, in other words, the scope. While I hope that this provides reassurance on the matter, if there are still concerns in spite of what I have said, I am very happy to look at this. Any opportunity to strengthen the Bill through that kind of clarity is worth looking at.

Lord Stevenson of Balmacara Portrait Lord Stevenson of Balmacara (Lab)
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I welcome the Minister’s comments. I am interrupting just because this is my amendment rather than my noble friend Lord Knight’s. The word “scope” caused us some disquiet on this Bench when we were trying to work out what we meant by it. It has been fleshed out in slightly different ways around the Chamber, to advantage.

I go back to the original intention—I am sorry for the extensive introduction, but it is to make sure that I focus the question correctly—which was to make sure that we are not looking historically at the terms of reference that have been issued, and whether they are working in a transparency mode, but addressing the question of what is missing or is perhaps not addressed properly. Does the Minister agree that that would be taken in by the word “scope”?

Viscount Camrose Portrait Viscount Camrose (Con)
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I think I probably would agree, but I would welcome a chance to discuss it further.

Finally, Amendment 229 intends to probe how Ofcom will review the effectiveness of transparency requirements in the Bill. It would require Ofcom to produce reports reviewing the effectiveness of transparency reports and would give the Secretary of State powers to implement any recommendations made by the regulator. While I of course agree with the sentiment of this amendment, as I have outlined, the transparency reporting power is designed to ensure that Ofcom can continuously review the effectiveness of transparency reports and make adjustments as necessary. This is why the Bill requires Ofcom to set out in annual transparency notices what each provider should include in its reports and the format and manner in which it should be presented, rather than putting prescriptive or static requirements in the Bill. That means that Ofcom will be able to learn, year on year, what will be most effective.

Under Clause 145, Ofcom is required to produce its own annual transparency report, which must include a summary of conclusions drawn from providers’ transparency reports, along with the regulator’s view on industry best practice and other appropriate information—I hope and think that goes to some of the points raised by the noble Lord, Lord Allan of Hallam.

Lord Knight of Weymouth Portrait Lord Knight of Weymouth (Lab)
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My Lords, just before the Minister moves on—and possibly to save me finding and reading it—can he let us know whether those annual reports by Ofcom will be laid before Parliament and whether Parliament will have a chance to debate them?

Viscount Camrose Portrait Viscount Camrose (Con)
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I believe so, but I will have to confirm that in writing. I am sorry not to be able to give a rapid answer.

Clause 159 requires the Secretary of State to review in total the operation of the regulatory framework to ensure it is effective. In that review, Ofcom will be a statutory consultee. The review will specifically require an assessment of the effectiveness of the regulatory framework in ensuring that the systems and processes used by services provide transparency and accountability to users.

The Bill will create what we are all after, which is a new culture of transparency and accountability in the tech sector. For the reasons I have laid out, we are confident that the existing provisions are sufficiently broad and robust to provide that. As such, I hope the noble Lord feels sufficiently reassured to withdraw the amendment.

Lord Knight of Weymouth Portrait Lord Knight of Weymouth (Lab)
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My Lords, that was a good, quick debate and an opportunity for the noble Viscount to put some things on the record, and explain some others, which is helpful. It is always good to get endorsement around what we are doing from both the noble Lord, Lord Allan, and the noble Baroness, Lady Fox. That is a great spread of opinion. I loved the sense of the challenge as to whether anyone ever reads the transparency reports whenever they are published; I imagine AI will be reading and summarising them, and making sure they are not written as gobbledygook.

On the basis of what we have heard and if we can get some reassurance that strong transparency is accompanied by strong parliamentary scrutiny, then I am happy to withdraw the amendment.

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Finally, I do not want to anticipate the Minister in introducing the amendments in his name, but we have no objections to them. I am sure that they will work exactly as he proposes and that they will be acceptable.
Lord Parkinson of Whitley Bay Portrait The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)
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My Lords, this has been miscellany, indeed. We must be making progress if we are picking up amendments such as these. I thank noble Lords who have spoken to the amendments and the issues covered in them.

I turn first to Amendment 185A brought to us by the noble Lord, Lord Bassam of Brighton, which seeks to add duties on online marketplaces to limit children’s access to the sale of knives, and proactively to identify and remove listings which appear to encourage the sale of knives for the purposes of violence or self-harm. Tackling knife crime is a priority for His Majesty’s Government; we are determined to crack down on this violent scourge, which is devastating our communities. I hope that he will forgive me for not drawing on the case he mentioned, as it is still sub judice. However, I certainly take the point he makes; we are all too aware of cases like it up and down the country. I received an email recently from Amanda and Stuart Stephens, whose son, Olly, was murdered by two boys, one of whom was armed with a knife. All these cases are very much in our minds as we debate the Bill.

Let me try to reassure them and the noble Lord as well as other Members of the Committee that the Bill, through its existing duties and other laws on the statute book, already achieves what the noble Lord seeks with his amendment. The sale of offensive weapons and of knives to people under the age of 18 are criminal offences. Any online retailer which directly sells these prohibited items can already be held criminally liable. Once in force, the Bill will ensure that technology platforms, including online marketplaces, prevent third parties from using their platform to sell offensive weapons or knives to people under the age of 18. The Bill lists both these offences as priority offences, meaning that user-to-user services, including online marketplaces, will have a statutory obligation proactively to prevent these offences taking place on their services.

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Lord Stevenson of Balmacara Portrait Lord Stevenson of Balmacara (Lab)
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I am sorry to interrupt. The Minister has twice given a positive response, but he limited it to child sexual exploitation; he did not mention terrorism, which is in fact the bigger issue. Could he confirm that it is both?

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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Yes, and as I say, I am happy to talk with the noble Lord about this in greater detail. Under the Bill, category 1 companies will have a new duty to safeguard all journalistic content on their platform, which includes citizen journalism. But I will have to take all these points forward with him in our further discussions.

My noble friend Lord Bethell is not here to move his Amendment 220D, which would allow Ofcom to designate online safety regulatory duties under this legislation to other bodies. We have previously discussed a similar issue relating to the Internet Watch Foundation, so I shall not repeat the points that we have already made.

On the amendments on supposedly gendered language in relation to Ofcom advisory committees in Clauses 139 and 155, I appreciate the intention to make it clear that a person of either sex should be able to perform the role of chairman. The Bill uses the term “chairman” to be consistent with the terminology in the Office of Communications Act 2002, and we are confident that this will have no bearing on Ofcom’s decision-making on who will chair the advisory committees that it must establish, just as, I am sure, the noble Lord’s Amendment 56 does not seek to be restrictive about who might be an “ombudsman”.

I appreciate the intention of Amendment 262 from the noble Baroness, Lady Bennett of Manor Castle. It is indeed vital that the review reflects the experience of young people. Clause 159 provides for a review to be undertaken by the Secretary of State, and published and laid before Parliament, to assess the effectiveness of the regulatory framework. There is nothing in the existing legislation that would preclude seeking the views of young people either as part of an advisory group or in other ways. Moreover, the Secretary of State is required to consult Ofcom and other persons she considers appropriate. In relation to young people specifically, it may be that a number of different approaches will be effective—for example, consulting experts or representative groups on children’s experiences online. That could include people of all ages. The regulatory framework is designed to protect all users online, and it is right that we take into account the full spectrum of views from people who experience harms, whatever their age and background, through a consultation process that balances all their interests.

Amendment 268AA from the noble Lord, Lord Bassam, relates to reporting requirements for online abuse and harassment, including where this is racially motivated—an issue we have discussed in Questions and particularly in relation to sport. His amendment would place an additional requirement on all service providers, even those not in scope of the Bill. The Bill’s scope extends only to user-to-user and search services. It has been designed in this way to tackle the risk of harm to users where it is highest. Bringing additional companies in scope would dilute the efforts of the legislation in this important regard.

Clauses 16 and 26 already require companies to set up systems and processes that allow users easily to report illegal content, including illegal online abuse and harassment. This amendment would therefore duplicate this existing requirement. It also seeks to create an additional requirement for companies to report illegal online abuse and harassment to the Crown Prosecution Service. The Bill does not place requirements on in-scope companies to report their investigations into crimes that occur online, other than child exploitation and abuse. This is because the Bill aims to prevent and reduce the proliferation of illegal material and the resulting harm it causes to so many. Additionally, Ofcom will be able to require companies to report on the incidence of illegal content on their platforms in its transparency reports, as well as the steps they are taking to tackle that content.

I hope that reassures the noble Lord that the Bill intends to address the problems he has outlined and those explored in the exchange with the noble Lord, Lord Clement-Jones. With that, I hope that noble Lords will support the government amendments in this group and be satisfied not to press theirs at this point.

Lord Bassam of Brighton Portrait Lord Bassam of Brighton (Lab)
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My Lords, I listened very carefully to the Minister’s response to both my amendments. He has gone some way to satisfying my concerns. I listened carefully to the concerns of the noble Baroness, Lady Fox, and noble Lords on the Lib Dem Benches. I am obviously content to withdraw my amendment.

I do not quite agree with the Minister’s point about dilution on the last amendment—I see it as strengthening —but I accept that the amendments themselves slightly stretch the purport of this element of the legislation. I shall review the Minister’s comments and I suspect that I shall be satisfied with what he said.

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Moved by
186A: Clause 79, page 71, line 20, leave out paragraph (b)
Member’s explanatory statement
This amendment omits a provision about recouping OFCOM’s preparatory costs via fees under Part 6 of the Bill, because it is now intended to recoup all preparatory costs incurred before the fees regime is in operation via the charging of additional fees under Schedule 10 (see also the amendment to Schedule 10 in the Minister’s name).
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Moved by
186B: Clause 80, page 71, line 26, leave out from “incurred” to end of line 27 and insert “before the first day of the initial charging year.”
Member’s explanatory statement
This amendment is to the clause introducing Schedule 10 (recovery of OFCOM’s initial costs). The amendment reflects the change to Schedule 10 proposed by the amendment of that Schedule in the Minister’s name.
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Moved by
186C: Schedule 10, page 212, line 37, leave out from “before” to end of line 39 and insert “the first day of the initial charging year on—
(a) preparations for the exercise of their online safety functions, or(b) the exercise of their online safety functions;”Member’s explanatory statement
Schedule 10 enables OFCOM to charge additional fees to recover certain online safety costs which are met by the retention of receipts under the Wireless Telegraphy Act 2006. This amendment extends the Schedule 10 regime to cover all costs incurred before the main fees regime under Part 6 of the Bill is in operation (as opposed to only covering preparatory costs incurred before the commencement of clause 79).
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I believe that there should be zero tolerance on whether children should be accessing material which is illegal for them, but the Bill does not say that. It says that all Ofcom’s work has to be done in proportion to the impact, not only in the direct work of trying to mitigate harms or illegality that could occur but taking into account the economic size of the company and the impact that the work would have on its activities. I do not think we can square that off, so I appeal to the Minister, when he comes to respond, to look at it from the other end. Why is it not possible to have a structure which is driven by the risk? If the risk assessment reveals risks that require action, there should not be a constraint simply because the categorisation hurdle has been met. The risk is what matters. Does he agree?
Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am grateful to noble Lords for helping us to reach our target for the first time in this Committee, especially to do so in a way which has given us a good debate on which to send us off into the Whitson Recess. I am off to the Isle of Skye, so I will make a special detour to Balmacara in honour of the noble Lord.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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The noble Lord does not believe anything that I say at this Dispatch Box, but I will send a postcard.

As noble Lords are by now well aware, all services in scope of the Bill, regardless of their size, will be required to take action against illegal content and all services likely to be accessed by children must put in place protections for children. Companies designated as category 1 providers have significant additional duties. These include the overarching transparency, accountability and freedom of expression duties, as well as duties on content of democratic importance, news publishers’ content, journalistic content and fraudulent advertising. It is right to put such duties only on the largest platforms with features enabling the greatest reach, as they have the most significant influence over public discourse online.

I turn first to Amendment 192 in the name of my noble friend Lady Morgan of Cotes and Amendment 192A from the noble Lord, Lord Griffiths of Burry Port, which are designed to widen category 1 definitions to include services that pose a risk of harm, regardless of their number of users. Following removal of the legal but harmful provisions in another place, the Bill no longer includes the concept of risk of harm in Category 1 designation. As we set out, it would not be right for the Government to define what legal content it considers harmful to adults, and it follows that it would not be appropriate for the Government to categorise providers and to require them to carry out duties based on this definition.

In addition, requiring all companies to comply with the full range of Category 1 duties would pose a disproportionate burden on services which do not exert the same influence over public discourse online. I appreciate the point made by the noble Baroness, Lady Bull, with regard to regulatory burden. There is a practical element to this as well. Services, particularly smaller ones, have finite resources. Imposing additional duties on them would divert them from complying with their illegal and child safety duties, which address the most serious online harms. We do not want to weaken their ability to tackle criminal activity or to protect children.

As we discussed in detail in a previous debate, the Bill tackles suicide and self-harm content in a number of ways. The most robust protections in the Bill are for children, while those for adults strike a balance between adults being protected from illegal content and given more choice over what legal content they see. The noble Lord, Lord Stevenson, asked why we do not start with the highest risk rather than thinking about the largest services, but we do. We start with the most severe harms—illegal activity and harm to children. We are focusing on the topics of greatest risk and then, for other categories, allowing adults to make decisions about the content with which they interact online.

A number of noble Lords referred to suicide websites and fora. We are concerned about the widespread availability of content online which promotes and advertises methods of suicide and self-harm, which can be easily accessed by young or vulnerable people. Under the Bill, where suicide and self-harm websites host user-generated content, they will be in scope of the legislation. These sites will need proactively to prevent users from being exposed to priority illegal content, including content which encourages or assists suicide under the terms of the Suicide Act 1961. Additionally, it is an offence under Section 4(3) of the Misuse of Drugs Act 1971 for a website to offer to sell controlled drugs to consumers in England and Wales. Posting advice on how to obtain such drugs in England and Wales is also likely to be an offence, regardless of where the person providing the advice is located.

The Bill also limits the availability of such content by placing illegal content duties on search services, including harmful content which affects children or where this content is shared on user-to-user services. This will play a key role in reducing traffic that directs people to websites which encourage or assist suicide, and reduce the likelihood of users encountering such content. The noble Baroness, Lady Bull, asked about starvation. Encouraging people to starve themselves or not to take prescribed medication will be covered.

Amendment 194 tabled by the noble Lord, Lord Stevenson of Balmacara, seeks to ensure that Ofcom can designate companies as category 1, 2A or 2B on a provisional basis, when it considers that they are likely to meet the relevant thresholds. This would mean that the relevant duties can be applied to them, pending a full assessment by Ofcom. The Government recognise the concern highlighted by the noble Lord, Lord Allan, about the rapid pace of change in the technology sector and how that can make it challenging to keep the register of the largest and most influential services up to date. I assure noble Lords that the Bill addresses this with a duty which the Government introduced during the Bill’s recommittal in another place. This duty, at Clause 88, requires Ofcom proactively to identify and publish a list of companies which are close to category 1 thresholds. This will reduce any delays in Ofcom adding additional obligations on companies which grow rapidly, or which introduce new high-risk features. It will also ensure that the regime remains agile and adaptable to emerging threats.

Platforms with the largest reach and greatest influence over public discourse will be designated as category 1. The Bill sets out a clear process for determining category 1 providers, based on thresholds relating to these criteria, which will be set by the Secretary of State in secondary legislation. The process has been designed to ensure that it is transparent and evidence-based. We expect the main social media platforms and possibly some others to be designated as category 1 services, but we do not wish to prejudge the process set out above by indicating which specific services are likely to be designated, as I have set out on previous groups.

The amendment would enable Ofcom to place new duties on companies without due process. Under the approach that we take in the Bill, Ofcom can designate companies as belonging to each category based only on an objective assessment of evidence against thresholds approved by Parliament. The Government’s approach also provides greater certainty for companies, as is proposed in this amendment. We have heard concerns in previous debates about when companies will have the certainty of knowing their category designation. These amendments would introduce continuous uncertainty and subjectivity into the designation process and would give Ofcom significant discretion over which companies should be subject to which duties. That would create a very uncertain operating environment for businesses and could reduce the attractiveness of the UK as a place to do business.

I hope that explains why we are not taken by these amendments but, in the spirit of the Whitsun Recess, I will certainly think about them on the train as I head north. I am very happy to discuss them with noble Lords and others between now and our return.

Lord Stevenson of Balmacara Portrait Lord Stevenson of Balmacara (Lab)
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Before the Minister sits down, he did let slip that he was going on the sleeper, so I do not think that there will be much thinking going on—although I did not sleep a wink the last time I went, so I am sure that he will have plenty of time.

I am sure that the noble Baroness, Lady Morgan, will want to come in—but could he repeat that again? Risk assessment drives us, but the risk assessment for a company that will not be regarded as a category 1 provider because it does not meet categorisation thresholds means that, even though it is higher risk than perhaps even some of the category 1 companies, it will not be subject to the requirements to pick up the particular issues raised by the noble Baroness and the noble Lord, and their concerns for those issues, which are clearly social harms, will not really be considered on a par.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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In the response I gave, I said that we are making the risk assessment that the riskiest behaviour is illegal content and content which presents a harm to children. That is the assessment and the approach taken in the Bill. In relation to other content which is legal and for adults to choose how they encounter it, there are protections in the Bill to enforce terms of service and empower users to curate their own experience online, but that assessment is made by adult users within the law.

Baroness Morgan of Cotes Portrait Baroness Morgan of Cotes (Con)
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I thank all noble Lords who spoke in this short but important debate. As we heard, some issues relating to risk and harm have been returned to and will no doubt be again, and we note the impact of the absence of legal but harmful as a concept. As the noble Baroness, Lady Bull, said, I know that the noble Baroness, Lady Parminter, was very sad that she could not be here this afternoon due to another engagement.

I will not keep the House much longer. I particularly noted the noble Baroness’s point that there should not be, and is not, a direct relationship between the size of the platform and its ability to cause harm. There is a balance to be struck between the regulatory burden placed on platforms versus the health and well-being of those who are using them. As I have said before, I am not sure that we have always got that particular balance right in the Bill.

The noble Lord, Lord Allan, was very constructive: it has to be a good thing if we are now beginning to think about the Bill’s implementation, although we have not quite reached the end and I do not want to prejudge any further stages, in the sense that we are now thinking about how this would work. Of course, he is right to say that some of these platforms have no intention of complying with these rules at all. Ofcom and the Government will have to work out what to do about that.

Ultimately, the Government of the day—whoever it might be—will want the powers to be able to say that a small platform is deeply harmful in terms of its content and reach. When the Bill has been passed, there will be pressure at some point in the future on a platform that is broadcasting or distributing or amplifying content that is deeply harmful. Although I will withdraw the amendment today, my noble friend’s offer of further conversations, and more detail on categorisation and of any review of the platforms as categorised as category 1, 2 and beyond, would be very helpful in due course. I beg leave to withdraw.