Lord Clement-Jones Portrait Lord Clement-Jones (LD)
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My Lords, if we needed an example of something that gave us cause for concern, that would be it; but a very good case has been made, certainly for the first half of the amendment in the name of the noble Lord, Lord Moylan, and we on these Benches support it.

Baroness Merron Portrait Baroness Merron (Lab)
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My Lords, it has certainly been an interesting debate, and I am grateful to noble Lords on all sides of the Committee for their contributions and considerations. I particularly thank the noble Lords who tabled the amendments which have shaped the debate today.

In general, on these Benches, we believe that the Bill offers a proportionate approach to tackling online harms. We feel that granting some of the exemptions proposed in this group would be unintentionally counterproductive and would raise some unforeseen difficulties. The key here—and it has been raised by a number of noble Lords, including the noble Baronesses, Lady Harding and Lady Kidron, and, just now, the noble Lord, Lord Clement-Jones, who talked about the wider considerations of the Joint Committee and factors that should be taken into account—is that we endorse a risk-based approach. In this debate, it is very important that we take ourselves back to that, because that is the key.

My view is that using other factors, such as funding sources or volunteer engagement in moderation, cuts right across this risk-based approach. To refer to Amendment 4, it is absolutely the case that platforms with fewer than 1 million UK monthly users have scope to create considerable harm. Indeed, noble Lords will have seen that later amendments call for certain small platforms to be categorised on the basis of the risk—and that is the important word—that they engender, rather than the size of the platform, which, unfortunately, is something of a crude measure. The point that I want to make to the noble Baroness, Lady Fox, is that it is not about the size of the businesses and how they are categorised but what they actually do. The noble Baroness, Lady Kidron, rightly said that small is not safe, for all the reasons that were explained, including by the noble Baroness, Lady Harding.

Amendment 9 would exempt small and medium-sized enterprises and certain other organisations from most of the Bill’s provisions. I am in no doubt about the well-meaning nature of this amendment, tabled by the noble Lord, Lord Moylan, and supported by the noble Lord, Lord Vaizey. Indeed, there may well be an issue about how start-ups and entrepreneur unicorns cope with the regulatory framework. We should attend to that, and I am sure that the Minister will have something to say about it. But I also expect that the Minister will outline why this would actually be unhelpful in combating many of the issues that this Bill is fundamentally designed to deal with if we were to go down the road of these exclusions.

In particular, granting exemptions simply on the basis of a service’s size could lead to a situation where user numbers are capped or perhaps even where platforms are deliberately broken up to avoid regulation. This would have an effect that none of us in this Chamber would want to see because it would embed harmful content and behaviour rather than helping to reduce them.

Referring back to the comments of the noble Lord, Lord Moylan, I agree with the noble Lord, Lord Vaizey, in his reflection. I, too, have not experienced the two sides of the Chamber that the noble Lord, Lord Moylan, described. I feel that the Chamber has always been united on the matter of child safety and in understanding the ramifications for business. It is the case that good legislation must always seek a balance, but, to go back to the point about excluding small and medium-sized enterprises, to call them a major part of the British economy is a bit of an understatement when they account for 99.9% of the business population. In respect of the exclusion of community-based services, including Wikipedia—and we will return to this in the next group—there is nothing for platforms to fear if they have appropriate systems in place. Indeed, there are many gains to be had for community-based services such as Wikipedia from being inside the system. I look forward to the further debate that we will have on that.

I turn to Amendment 9A in the name of my noble friend Lord Knight of Weymouth, who is unable to participate in this section of the debate. It probes how the Bill’s measures would apply to specialised search services. Metasearch engines such as Skyscanner have expressed concern that the legislation might impose unnecessary burdens on services that pose little risk of hosting the illegal content targeted by the Bill. Perhaps the Minister, in his response, could confirm whether or not such search engines are in scope. That would perhaps be helpful to our deliberations today.

While we on these Benches are not generally supportive of exemptions, the reality is that there are a number of online search services that return content that would not ordinarily be considered harmful. Sites such as Skyscanner and Expedia, as we all know, allow people to search for and book flights and other travel services such as car hire. Obviously, as long as appropriate due diligence is carried out on partners and travel agents, the scope for users to encounter illegal or harmful material appears to be minimal and returns us to the point of having a risk-based approach. We are not necessarily advocating for a carve-out from the Bill, but it would perhaps be helpful to our deliberations if the Minister could outline how such platforms will be expected to interact with the Ofcom-run online safety regime.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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My Lords, I am sympathetic to arguments that we must avoid imposing disproportionate burdens on regulated services, but I cannot accept the amendments tabled by the noble Baroness, Lady Fox, and others. Doing so would greatly reduce the strong protections that the Bill offers to internet users, particularly to children. I agree with the noble Baroness, Lady Merron, that that has long been the shared focus across your Lordships’ House as we seek to strike the right balance through the Bill. I hope to reassure noble Lords about the justification for the existing balance and scope, and the safeguards built in to prevent undue burdens to business.

I will start with the amendments tabled by the noble Baroness, Lady Fox of Buckley—Amendments 4, 6 to 8, 12, 288 and 305—which would significantly narrow the definition of services in scope of regulation. The current scope of the Bill reflects evidence of where harm is manifested online. There is clear evidence that smaller services can pose a significant risk of harm from illegal content, as well as to children, as the noble Baroness, Lady Kidron, rightly echoed. Moreover, harmful content and activity often range across a number of services. While illegal content or activity may originate on larger platforms, offenders often seek to move to smaller platforms with less effective systems for tackling criminal activity in order to circumvent those protections. Exempting smaller services from regulation would likely accelerate that process, resulting in illegal content being displaced on to smaller services, putting users at risk.

These amendments would create significant new loopholes in regulation. Rather than relying on platforms and search services to identify and manage risk proactively, they would require Ofcom to monitor smaller harmful services, which would further annoy my noble friend Lord Moylan. Let me reassure the noble Baroness, however, that the Bill has been designed to avoid disproportionate or unnecessary burdens on smaller services. All duties on services are proportionate to the risk of harm and the capacity of companies. This means that small, low-risk services will have minimal duties imposed on them. Ofcom’s guidance and codes of practice will set out how they can comply with their duties, in a way that I hope is even clearer than the Explanatory Notes to the Bill, but certainly allowing for companies to have a conversation and ask for areas of clarification, if that is still needed. They will ensure that low-risk services do not have to undertake unnecessary measures if they do not pose a risk of harm to their users.

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Baroness Merron Portrait Baroness Merron (Lab)
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My Lords, I am grateful to the Minister for introducing this group, and we certainly welcome this tranche of government amendments. We know that there are more to come both in Committee and as we proceed to Report, and we look forward to seeing them.

The amendments in this group, as other noble Lords have said, amount to a very sensible series of changes to services’ risk-assessment duties. This perhaps begs the question of why they were not included in earlier drafts of the Bill, but we are glad to see them now.

There is, of course, the issue of precisely where some of the information will appear, as well as the wider status of terms of service. I am sure those issues will be discussed in later debates. It is certainly welcome that the department is introducing stronger requirements around the information that must be made available to users; it will all help to make this a stronger and more practical Bill.

We all know that users need to be able to make informed decisions, and it will not be possible if they are required to view multiple statements and various documents. It seems that the requirements for information to be provided to Ofcom go to the very heart of the Bill, and I suggest that the proposed system will work best if there is trust and transparency between the regulator and those who are regulated. I am sure that there will be further debate on the scope of risk assessments, particularly on issues that were dropped from previous iterations of the Bill, and certainly this is a reasonable starting point today.

I will try to be as swift as possible as I raise a few key issues. One is about avoiding warnings that are at such a high level of generality that they get put on to everything. Perhaps the Minister could indicate how Ofcom will ensure that the summaries are useful and accessible to the reader. The test, of course, should be that a summary is suitable and sufficient for a prospective user to form an assessment of the likely risk they would encounter when using the service, taking into account any special vulnerabilities that they might have. That needs to be the test; perhaps the Minister could confirm that.

Is the terms of service section the correct place to put a summary of the illegal content risk assessment? Research suggests, unsurprisingly, that only 3% of people read terms before signing up—although I recall that, in an earlier debate, the Minister confessed that he had read all the terms and conditions of his mobile phone contract, so he may be one of the 3%. It is without doubt that any individual should be supported in their ability to make choices, and the duty should perhaps instead be to display a summary of the risks with due prominence, to ensure that anyone who is considering signing up to a service is really able to read it.

I also ask the Minister to confirm that, despite the changes to Clause 19 in Amendment 16B, the duty to keep records of risk assessments will continue to apply to all companies, but with an enhanced responsibility for category 1 companies.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am grateful to noble Lords for their questions on this, and particularly grateful to the noble Lord, Lord Allan, and the noble Baroness, Lady Kidron, for their chorus of welcome. Where we are able to make changes, we will of course bring them forward, and I am glad to be able to bring forward this tranche now.

As the noble Lord, Lord Allan, said, ensuring the transparency of services’ risk assessments will further ensure that the framework of the Bill delivers its core objectives relating to effective risk management and increased accountability regarding regulated services. As we have discussed, it is imperative that these providers take a thorough approach to identifying risks, including emerging risks. The Government believe that it is of the utmost importance that the public are able effectively to scrutinise the risk assessments of the largest in-scope services, so that users can be empowered to make informed decisions about whether and how to use their services.

On the questions from the noble Baroness, Lady Kidron, and the noble Lord, Lord Clement-Jones, about why it is just category 1 and category 2A services, we estimate that there will be around 25,000 UK service providers in scope of the Bill’s illegal and child safety duties. Requiring all these companies to publish full risk assessments and proactively to send them to Ofcom could undermine the Bill’s risk-based and proportionate approach, as we have discussed in previous groups on the burdens to business. A large number of these companies are likely to be low risk and it is unlikely that many people will seek out their risk assessments, so requiring all companies to publish them would be an excessive regulatory burden.

There would also be an expectation that Ofcom would proactively monitor a whole range of services, even ones that posed a minimal risk to users. That in turn could distract Ofcom from taking a risk-based approach in its regulation by overwhelming it with paperwork from thousands of low-risk services. If Ofcom wants to see records of the risk assessments of providers that are not category 1 or category 2A services, it has extensive information-gathering powers that it can use to require a provider to send it such records.

The noble Baroness, Lady Merron, was right to say that I read the terms of my broadband supply—I plead guilty to the nerdiness of doing that—but I have not read all the terms and conditions of every application and social medium I have downloaded, and I agree that many people do skim through them. They say the most commonly told lie on the planet at the moment is “I agree to the terms and conditions”, and the noble Baroness is right to point to the need for these to be intelligible, easily accessible and transparent—which of course we want to see.

In answer to her other question, the record-keeping duty will apply to all companies, but the requirement to publish is only for category 1 and category 2A companies.

The noble Baroness, Lady Kidron, asked me about Amendment 27A. If she will permit me, I will write to her with the best and fullest answer to that question.

I am grateful to noble Lords for their questions on this group of amendments.