18
Accepted
Ofcom's online safety enforcement decisions require strong evidence and proportionality to withstand judicial review.
Conclusion
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 sanctions.37 Ofcom explained that any action it takes can be judicially reviewed 26 Q 15 27 Qq 19, 20 28 Q 72; C&AG’s Report, para 3.16 29 Q 25 30 Qq 25, 27, 55 31 Q 51; C&AG’s Report, para 1.14 32 Qq 24, 44, 51 33 Qq 44, 51 34 Qq 24, 52 35 Qq 44, 52 36 Q 47 37 Q 53; C&AG’s Report, figure 3 12 Preparedness for online safety regulation if a company feels that Ofcom has gone too far or does not have the right evidence. Its enforcement decisions will therefore need to be clearly evidenced, proportionate and risk- based, such that any action it takes has an impact and stands up in court.38 38 Qq 54–56 Preparedness for online safety regulation 13 2 Financing the regime and ensuring excellence Financing the regime
Government Response Summary
The government agrees with the committee's implied recommendation that Ofcom's enforcement actions must be clearly evidenced, proportionate, and risk-based, detailing how Ofcom is developing data-driven tools and will publish final enforcement guidance in late 2024 to support this.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2025 3.2 Given the scale and scope of the regime, Ofcom is designing data-driven tools to identify potential risks, including non-compliance. 3.3 A foundational task is identifying the services likely to fall in scope. Ofcom has developed a classification tool, which is already providing insights into the profile of regulated services and will continue to refine it drawing from the experience of applying the Act. 3.4 Additionally, Ofcom is developing several interconnected tools which could help to flag where services may not be compliant. For example: • Building a live database of services’ characteristics including risk factors. • Automating the analysis of Terms of Service to check whether they include the provisions required by the Act. • Automating the analysis of news and users’ complaints about services to enable timely engagement in case of emerging threats. • Exploring tools to automatically verify whether users can access pornography without an age check. 3.5 This will inform the possible need for enforcement in several ways, including by flagging increasing risk of harm, which may be due to ineffective safety processes, or potential compliance concerns. 3.6 Ofcom expects services to engage constructively and openly, and to be willing to make improvements. Ofcom will use its enforcement powers where it considers appropriate, reasonable, and proportionate to do so, guided by its regulatory principles. Ofcom’s approach to investigating compliance concerns and enforcing the Act’s requirements is set out in its draft enforcement guidance, on which it has consulted. Ofcom intends to publish the final guidance in late 2024.
Source
Committee
Public Accounts Committee
Report
Thirteenth Report - Preparedness for online safety regulation
21 Feb 2024
HC 73
Addressee Bodies
HM Treasury
Timeline
Recommendation age
2.4 yrs
Report published
21 Feb 2024