Preparedness for online safety regulation

Public Accounts Committee Closed Inquiry
Opened: 27 Jul 2023 Closed: 3 May 2024 Parliament page
The Online Safety Act establishes a new regulatory regime for online safety, with the aim to make the UK the safest place in the world to go online. In 2022, 68% of UK child internet users (aged 13-17), and 62% of adult users (aged 18+), indicated they had experienced at … Read more
1 Recommendation
28 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 5 events
3 May
2024
Report published
21 Feb
2024
Report published
6 Dec
2023
Oral evidence
6 Dec
2023
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
9 Nov
2023
Correspondence
Oral evidence sessions 1 session
6 Dec 2023
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Preparedness for online safety regulation
Dame Melanie Dawes · Ofcom Jessica Smith · Ofcom Sarah Connolly · Department for Digital, Culture, Media and Sport Sarah Munby · Department for Business, Energy and Industrial Strategy
Title HC No. Published Items Response
Thirteenth Report - Preparedness for online safety regulation HC 73 21 Feb 2024 29 Responded
Recommendations & Conclusions
29 results
2 Conclusion Rejected
Thirteenth Report - Preparedness f…
Develop mechanisms to provide direct feedback to complainants on their impact on Ofcom actions.
The public may be disappointed with the new regime if people cannot quickly see improvements to their online experience or understand how their complaints are acted on. As the regulatory regime will not be fully implemented until 2026, there is … Read more
Government Response
The government rejects the recommendation, stating that Ofcom is not empowered to adjudicate individual complaints and these should be directed to service providers. Ofcom will analyze complaints for trends and its enforcement decisions will note where they were informed by user complaints.
HM Treasury
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3 Conclusion Accepted
Thirteenth Report - Preparedness f…
Finalise automated compliance monitoring systems and clarify enforcement approach for non-engaging providers.
Ofcom lacks clarity about how it will identify and respond to non-compliance and when to use its enforcement powers. Ofcom estimates that there could be 100,000 or more service providers subject to regulation, with most of these being small businesses … Read more
Government Response
Ofcom is developing several automated compliance monitoring tools, including a classification tool, live database of service characteristics, and automated analysis of terms of service, news, and user complaints. Ofcom will publish its final enforcement guidance in late 2024.
HM Treasury
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4 Recommendation Accepted
Thirteenth Report - Preparedness f…
Set out modelling, transparent reporting, and transition plan for the online safety fee regime.
Ofcom has yet to work through the detail of how fees levied on industry will work, including how it will recover the set-up costs and cover the ongoing costs of the regime. Delays to the Online Safety Bill’s passage through … Read more
Government Response
Ofcom plans to publicly consult on its fees regime approach in Summer 2024, including financial modelling and impact assessments. The department intends to consult on the approach to recouping Ofcom's pre-charging year costs once the fee regime is operational.
HM Treasury
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5 Conclusion Rejected
Thirteenth Report - Preparedness f…
Undertake regular skills audits to identify and address capability gaps across all staff levels.
Effective regulation will require Ofcom and the Department to sustain the skills and people they need in a fast-moving and highly technical sector. To date, Ofcom has successfully recruited the skills it requires, recruiting people from industry and a wide … Read more
Government Response
The government rejects the recommendation, stating that both Ofcom and the department already have effective half-yearly and yearly workforce planning processes, respectively, to ensure they have the necessary skills and capabilities. Ofcom also has a systematic horizon scanning function and the department has delegated learning budgets to assess skill needs.
HM Treasury
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6 Conclusion Accepted
Thirteenth Report - Preparedness f…
Accelerate work on evaluating online safety regime and collaborating with UK and international regulators.
The long-term success of the regime depends on Ofcom continuing to learn from international engagement and regular evaluation. No other country has introduced online safety regulation of an equivalent scale. Ofcom has engaged with UK and overseas regulators, and it … Read more
Government Response
The department and Ofcom will formalise engagement by establishing an Evaluation Steering Group, with the department having a plan and framework for evaluation and Ofcom designing a full suite of metrics. Both are actively engaging internationally, including signing an MoU with Australia and Ofcom planning an extensive work program with regulators in 2024-25, supported by new statutory instruments for information sharing.
HM Treasury
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1 Conclusion Accepted
Thirteenth Report - Preparedness f…
Committee takes evidence on preparedness for online safety regulation from DSIT and Ofcom.
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Science, Innovation and Technology (the Department) and Ofcom about preparedness for online safety regulation.1
Government Response
The government states that Ofcom is on track to meet the statutory deadline of 26 April 2025 for reporting on illegal harms and protection of children. Ofcom has already issued its illegal harms consultation and will publish its protection of children consultation in May 2024.
HM Treasury
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7 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom has produced only 10 of 54 required documents for online safety regime implementation.
As part of its implementation of the regime, and before the regime can take real effect, Ofcom will have to produce 54 documents setting out different parts of the regulations, including formal codes of practice and guidance for regulated service … Read more
Government Response
The government states that Ofcom is on track to meet the statutory deadline of April 2025 for submitting its Codes of Practice on illegal harms and child protection. Ofcom has issued its illegal harms consultation and will publish its child protection consultation in May 2024.
HM Treasury
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8 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom's online safety regulation preparation was challenging but benefited from extended timelines.
Ofcom has been preparing for its new regulatory role since 2020 when the government confirmed its decision to appoint Ofcom as the regulator for online safety.10 Ofcom told us that there was no regulation of comparable scale and ambition, and … Read more
Government Response
The government agrees and states that Ofcom is on track to meet the April 2025 deadline for submitting its Codes of Practice, having completed the illegal harms consultation and planning to publish the protection of children consultation in May 2024.
HM Treasury
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9 Conclusion Rejected
Thirteenth Report - Preparedness f…
Online Safety Act mandates service providers establish procedures for handling user complaints.
The Act requires all regulated service providers to put procedures in place for handling complaints from users and affected people about potentially harmful content.14 Ofcom will set out, through its codes of practice, how it expects service providers to handle … Read more
Government Response
The government disagrees, stating that the Act does not empower Ofcom to adjudicate individual complaints, which should be directed to service providers. Ofcom will analyze complaint trends, and eligible entities can bring super-complaints. The Secretary of State may also impose a duty for alternative dispute resolution on Category 1 services.
HM Treasury
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10 Conclusion Rejected
Thirteenth Report - Preparedness f…
Ofcom lacks powers and resources to address individual online content complaints effectively.
Ofcom itself is only required to consider complaints from organisations about systemic issues arising from a service provider and impacting on online safety. It has no specific powers to take action, or compel regulated service providers to take action, on … Read more
Government Response
The government explicitly disagrees, stating Ofcom is not empowered to adjudicate individual complaints, which are the responsibility of service providers. Ofcom will analyze complaints for trends, acknowledge them, and direct users to support, while super-complaints will be considered from eligible entities.
HM Treasury
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11 Conclusion Rejected
Thirteenth Report - Preparedness f…
Ofcom's contact centre will gather individual complaints to inform identification of emerging harms.
Ofcom told us that, while it is not able or resourced to act on individual complaints, its contact centre will be set up so people are able to submit complaints to Ofcom. Ofcom explained that this would provide a valuable … Read more
Government Response
The government explicitly disagrees, stating Ofcom is not empowered to adjudicate individual complaints, which should be directed to service providers. Ofcom will use reported complaints to identify trends, acknowledge them, and direct users to support, and super-complaints from eligible entities will be considered.
HM Treasury
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12 Conclusion Rejected
Thirteenth Report - Preparedness f…
Ofcom needs to manage public expectations and develop a feedback loop for individual complaints.
In other areas of Ofcom’s regulation, such as broadcasting, Ofcom can take action over complaints about individual programmes. We asked Ofcom how it will manage public expectation, including the risk of disappointment that people cannot complain to Ofcom about individual … Read more
Government Response
The government disagrees, stating that the Act does not empower Ofcom to adjudicate individual complaints, which should be directed to service providers. Ofcom will analyze complaint trends, and eligible entities can bring super-complaints. The Secretary of State may also impose a duty for alternative dispute resolution on Category 1 services.
HM Treasury
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13 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom will monitor compliance of 100,000+ service providers, focusing supervision on 40 riskiest.
As the regulator for online safety, Ofcom will need to monitor the compliance of over 100,000 service providers, who target the UK market or have a significant number of UK users, and that fall within the scope of the regulation. … Read more
Government Response
The government agrees and states Ofcom is designing data-driven tools, developing a classification tool, building a live database of service characteristics, automating analysis of terms of service and user complaints, and exploring tools to verify age checks for pornography. Ofcom expects to publish final enforcement guidance in late 2024.
HM Treasury
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14 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom has yet to develop automated data collection systems for non-supervised providers.
For the non-supervised service providers, Ofcom will monitor their compliance through automated data collection and analysis processes, supported by information from partner organisations that deal with the various harms. Ofcom told us that it has yet to develop the automated … Read more
Government Response
The government agrees with the committee's observations and confirms Ofcom is designing data-driven tools and several interconnected automated systems, including a classification tool and analysis tools for terms of service and complaints, with a target implementation date of Spring 2025.
HM Treasury
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15 Conclusion Acknowledged
Thirteenth Report - Preparedness f…
Ofcom will use engagement-first approach for non-compliance, resorting to enforcement for serious risks.
Ofcom explained that, where non-compliance issues arise, it will approach services with an engagement-first attitude and would not normally move straight to enforcement. It described a recent example of its engagement with an overseas-based website about how to commit suicide.29 … Read more
Government Response
The response states that Ofcom expects services to engage constructively and will use enforcement powers appropriately, guided by its regulatory principles. Ofcom's approach is detailed in its draft enforcement guidance, which it plans to publish in late 2024.
HM Treasury
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16 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom cannot enforce online safety duties until codes of practice are published by April 2025.
Ofcom cannot undertake enforcement action until the codes of practice are published and, in some instances, set before parliament.31 Ofcom plans to publish its first codes, on illegal harms and protecting children, within 18 months of the Bill becoming law … Read more
Government Response
The government agrees with the committee's observations and confirms Ofcom is on track to meet the April 2025 deadline for codes of practice, having issued the illegal harms consultation and planning to publish the protection of children consultation in May 2024.
HM Treasury
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17 Conclusion
Thirteenth Report - Preparedness f…
Online safety compliance will take time, as shown by video-sharing platform regulation experience.
Ofcom told us that it had undertaken a similar approach in its regulation of video- sharing platforms from November 2020. It had worked with pornography providers, some of whom had, as a result, introduced age estimation techniques. However, there had … Read more
HM Treasury
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18 Conclusion
Thirteenth Report - Preparedness f…
Ofcom's online safety enforcement decisions require strong evidence and proportionality to withstand judicial review.
The enforcement action Ofcom can take on online safety regulation includes: fines of up to 10% of global revenues; requirements on the service provider to make changes; business disruption measures that prevent them from accessing the UK market; and criminal … Read more
HM Treasury
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19 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom's online safety regime faces a Treasury budget cap and a £3 million funding shortfall.
Ofcom’s expenditure is subject to an overall budget cap set by HM Treasury. Treasury agreed to increase this cap to fund the upfront costs of the online safety regime, with the costs funded from Ofcom’s retention of Wireless Telegraphy Act … Read more
Government Response
The government agrees and states that Ofcom will consult publicly in Summer 2024 on its fees regime, including revenue definition and charging principles, aiming for implementation in the 2026-27 financial year. The department will consult on recouping pre-charging year costs once the fee regime is operational.
HM Treasury
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20 Conclusion Accepted
Thirteenth Report - Preparedness f…
Self-financing online safety regime faces delays in fee collection and full cost recovery.
The online safety regime is expected to be self-financing, once it is fully operational, with both ongoing costs of the regime and the costs of its set-up covered by fees levied on industry.43 However, Ofcom will not start charging fees … Read more
Government Response
The government agrees with the committee's observations, stating Ofcom will consult publicly on its fees regime in Summer 2024, aiming for implementation in the 2026-27 financial year, and plans to consult on recouping pre-charging costs once the regime is operational.
HM Treasury
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21 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom has yet to determine key details for the online safety fee regime design.
Ofcom has yet to determine many of the details of the fee regime, including the period over which set-up costs will be recovered; the revenue threshold at which firms start to pay fees; and the fee rates payable. It had … Read more
Government Response
The government agrees and states that Ofcom will consult publicly in Summer 2024 on its fees regime, including revenue definition and charging principles, aiming for implementation in the 2026-27 financial year. The department will also consult on recouping pre-charging year costs once the fee regime is operational.
HM Treasury
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22 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom unable to forecast scale of online safety fees, prioritising proportionality and fairness.
We asked Ofcom whether it has been able to give industry any indication about the likely scale of fees. Ofcom was unable to comment but did highlight that it will run a consultation during which industry can provide input and … Read more
Government Response
The government agrees with the committee's observations and states Ofcom will consult publicly on its fees regime in Summer 2024, aiming for implementation in the 2026-27 financial year, and plans to consult on recouping pre-charging costs once the regime is operational.
HM Treasury
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23 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom significantly increased headcount and diversified recruitment for online safety regulatory responsibilities.
To deliver its online safety work, Ofcom reported that it has increased its headcount, from around 950 people to what will probably be around 1,500, an increase of about 50%.52 Progress in meeting its staffing requirements has been broadly to … Read more
Government Response
The government disagrees with the committee's implied recommendation, stating that both Ofcom and the Department already have effective workforce planning processes, including half-yearly reviews and horizon scanning, to ensure the necessary skills and people are in place.
HM Treasury
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24 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom confident in talent attraction and retention with competitive public sector salaries.
Ofcom told us that some recruits have returned to industry, but that retention generally is not an issue at the moment.56 It told us that it is confident in its ability to attract the necessary talent, with people attracted by … Read more
Government Response
The government disagrees, stating that both the department and Ofcom already have effective workforce planning processes, including half-yearly reviews, horizon scanning, and yearly business planning, to ensure they have the necessary skills and people.
HM Treasury
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25 Conclusion Accepted
Thirteenth Report - Preparedness f…
Ofcom reorganised for online safety accountability, but needs to embed more responsive working methods.
Ofcom has undertaken extensive organisational design work to prepare for and operate the new regulatory regime.58 Ofcom explained that, to improve accountability and organisational clarity, it re-organised around four groups of work, of which online safety is one. Accountability for … Read more
Government Response
The government disagrees with the committee's implied recommendation, stating that both Ofcom and the Department already have effective workforce planning processes and initiatives, such as half-yearly reviews and horizon scanning, to ensure the right skills and people are in place.
HM Treasury
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26 Conclusion Accepted
Thirteenth Report - Preparedness f…
Department requires continuous evolution of capabilities to address rapidly changing online risks.
The Department also recognised that it needs to be constantly evolving its own capabilities so that it has the right resources to deal with the new risks and opportunities arising in a rapidly changing environment. It cited as examples the … Read more
Government Response
The government disagrees, stating that both the department and Ofcom already have effective workforce planning, half-yearly workforce reviews, horizon scanning functions, and yearly business planning processes to ensure the necessary skills and capabilities are in place.
HM Treasury
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27 Conclusion Accepted
Thirteenth Report - Preparedness f…
UK Online Safety Act establishes comprehensive global standard, necessitating international regulatory engagement.
The government considers that, with the Online Safety Act, the UK will be the first country to regulate such a comprehensive range of online harms, and the Department told us that a lot of what it described as ‘nascent legislation … Read more
Government Response
The government agrees with the committee's observations and states the recommendation is already implemented, citing ongoing international collaboration through various forums, a recent MoU with Australia, and a statutory instrument enhancing Ofcom's ability to share information with overseas regulators.
HM Treasury
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28 Conclusion Accepted
Thirteenth Report - Preparedness f…
Collaboration and trusted flaggers are crucial for tackling online harms and fraudulent advertising.
Both the Department and Ofcom see collaboration, both nationally and internationally, as crucial to achieving change on behalf of the British public in line with the Act. Working in partnership with other regulators will help them be alert to the … Read more
Government Response
The government agrees and states the recommendation is implemented, highlighting the department's evaluation framework and plans, Ofcom's metric design, and ongoing national and international collaboration efforts, including an MOU with Australia and a statutory instrument to enhance information sharing with overseas regulators.
HM Treasury
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29 Conclusion Accepted
Thirteenth Report - Preparedness f…
Effective evaluation for online safety regulation hindered by incomplete metrics and evidence gaps.
The Department and Ofcom also recognise the role evaluation will play in ensuring the regulatory regime’s future success. For example, Ofcom is developing evaluations and key metrics to make sure that its proposals are being acted on and are having … Read more
Government Response
The government agrees with the committee's observations, stating the recommendation is already implemented through the department's existing evaluation framework and Ofcom's ongoing work to design a full suite of metrics and establish an Evaluation Steering Group.
HM Treasury
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Government Response AI assessment · 27 of 1 classified
Accepted 20
Acknowledged 1
Rejected 6
Total 1 rec + 28 conclusions
Correspondence 1 letter
9 Nov 2023 Correspondence from Richard Burgon MP, House of Commons, re Preparedness for online safety regulation, dated 25th October 2023
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