(7 years, 4 months ago)
Lords ChamberAs I said to the noble Baroness, the Government attend the IETF. The protocol was discussed from October 2017 to October 2018, so it was during that process. As far as the online harms White Paper is concerned, the technology will potentially cause changes in enforcement by online companies, but of course it does not change the duty of care in any way. We will have to look at the alternatives to some of the most dramatic forms of enforcement, which are DNS blocking.
My Lords, if there is obscurity, it is probably in the use of the technology itself and the terminology that we have to use—DoH and the other protocols that have been referred to are complicated. At heart, there are two issues at stake, are there not? The first is that the intentions of DoH, as the Minister said, are quite helpful in terms of protecting identity, and we do not want to lose that. On the other hand, it makes it difficult, as has been said, to see how the Government can continue with their current plan. We support the Digital Economy Act approach to age-appropriate design, and we hope that that will not be affected. We also think that the soon to be legislated for—we hope—duty of care on all companies to protect users of their services will help. I note that the Minister says in his recent letter that there is a requirement on the Secretary of State to carry out a review of the impact and effectiveness of the regulatory framework included in the DEA within the next 12 to 18 months. Can he confirm that the issue of DoH will be included?
Clearly, DoH is on the agenda at DCMS and will be included everywhere it is relevant. On the consideration of enforcement—as I said before, it may require changes to potential enforcement mechanisms—we are aware that there are other enforcement mechanisms. It is not true to say that you cannot block sites; it makes it more difficult, and you have to do it in a different way.
(7 years, 5 months ago)
Lords ChamberMy Lords, I join others in thanking the Government for ensuring that the House has had an early opportunity to debate this White Paper. It has been long-trailed—it kept approaching and disappearing in our thoughts as the Minister came under pressure to define his timescale—but it is here, it is good and we will support it. However, it has also brought up a number of issues that have been raised today and we need to address them.
The number of speakers in the debate may be relatively low but the quality of the content has been extremely high. I have been scribbling notes all the way through, often overwriting what I was going to say as additional points came through. I will probably not be as clear as I would wish to be but that is a reflection of the quality on display today.
We also had the chance to see practical examples of the issues in play in the exchanges on the Statement that preceded this debate. Some concrete examples were quite worrisome and I hope they will be looked at carefully by DCMS, even though the Statement was from the Department for Health and Social Care.
It would be invidious to pick out particular contributions to the debate—as I have said, the standard has been high—but it would be remiss of me not to pay tribute to the noble Baroness, Lady Howe, for her contribution. She has been a doughty campaigner on these issues for as long as anyone can remember—she can remember a long way back; I mean no disrespect by saying that—and it must be a sweet moment for the Minister that, despite the criticisms she still has, she welcomed what has been put in front of us today.
We are not discussing a Bill and I take the Minister’s point that this is a White Paper for discussion. It has some green pages to which we are encouraged to respond, and I hope we will all respond where we can. I also hope that the Minister will take on board what has been said today because it has been a useful contribution. Many people have spoken about the wording of the paper itself, which gives a sense of where we are in this debate. I shall do so as well. I have some general points that I wish to make at the end of what I have to say, but I shall start with one or two points of detail because it is important that we pick up on issues of substance.
On the statement in the White Paper on a new regulatory framework for online safety, in paragraph 21 there is an assertion that the Bill will contain powers for the Government to direct the regulator, when appointed, in relation to codes of practice on terrorist activity or child sexual exploitation and abuse—CSEA—and that these codes must be signed off by the Home Secretary. This is an issue in which Parliament needs to be involved and I hope the Minister will reflect on that and find a way in which we can get further engagement. I do not think it appropriate for the Executive simply to commission codes, have the Home Secretary sign them off and implement them without Parliament having a much greater role.
Paragraph 22 refers to the need to make sure that the codes of practice relate to currently illegal harms, of which there are many, including violence and the sale of illegal services and goods such as weapons. The clear expectation is that the regulator will work with law enforcement to ensure that the codes keep pace with the threat. This also is a wider issue because obscenity law is also in need of updating. We have had discussions on previous Bills about how there is discontinuity in how the Government are going about this. I hope that point will also be picked up.
A number of noble Lords raised the importance of transparency for any work that might be done in this area. The most disappointing aspect is the rather coy phrasing in the White Paper in relation to algorithms. Paragraph 23 refers only to the regulator having powers to require additional information about the impact of algorithms in selecting content for users. The bulk of the argument that has been made today is that we need to know what these algorithms are doing and what they will make happen in relation to people’s data and how the information provided will be used. This issue came up in the discussion on the Statement, when it was quite clear that those who might be at risk from harms created on social media are also receiving increasingly complex and abusive approaches because of algorithms rather than general activity. This issue is important and we will need to come back to it.
Moving on to the companies in the scope of the regulatory framework, the phrasing of paragraph 29 is interesting. It states:
“The regulatory framework should apply to companies that allow users to share or discover user-generated content or interact with each other online”.
That does not cover the point that, as many others have said, a much wider set of societal and economic indicators will be affected by the work on social media. We cannot allow the opportunity to legislate here to be missed because of some constraint on looking only at user-to-user interactions. We need to consider the impact on the economy more broadly.
When the Minister responds, or perhaps in writing later, will he consider the question raised in paragraph 33, which states:
“Reflecting the importance of privacy, any requirements to scan or monitor content for tightly defined categories of illegal content will not apply to private channels”?
We need to know more about what is meant by “private channels”. There is more in the White Paper but this exclusion of private communications may be too great a risk to bear. If we are talking about WhatsApp or Facebook Messenger messages being private, we will also miss out on the problems that have been caused by harassment, bullying, aggression and other issues raised in earlier debates.
On the independent regulator, which I shall come back to later, there is a very narrow issue about the wording of paragraph 35, which says that,
“the regulator will work closely with UK Research and Innovation (UKRI)”.
Why has that body been picked? There must be many people doing research in this area and it would seem invidious that it has been selected as one of the primary partners on the evidence base. I hope there is a much broader cut through the research being done because we will need it as we move forward.
Finally on the detailed points, the enforcement of the regulatory framework is key to whether this will be a successful démarche. On all the previous occasions we have discussed this, in relation to gambling, addiction and other issues, we have come across the problem that where companies have a legal presence in the UK, there is obviously an easier route through to attaching to them. However, most companies operating in the UK are based entirely overseas, and this is true of the companies we are talking about today. It is a familiar problem. We have been through this so many times that the arguments must be so well rehearsed in the department that it has not been able to come up with anything new this time, although I regret that because we are stuck with the issue that, while it is very good to see the Government prepared to impose liability on individual members of senior management in respect of breaches of the regulations implied by the new regulator, the business activities will not be affected if the Government lack the powers to do anything about them. The Minister is well aware that in previous discussions we have come to the conclusion that the only real way in which one can get at that is to follow the money. Unless there are powers in the Bill, when it comes forward, to block non-compliant services, and particularly to stop the flow of money, it will not be effective. I hope that message will be learned and taken forward.
The noble Lord, Lord Anderson of Ipswich, raised an important point about the fit with the EU e-commerce directive. I am sure the answer to this is that it cannot be answered, but the issue is clearly there. The e-commerce directive constrains the Government’s ability in this area. Unless they have a way forward on this, we will not be able to get far beyond the boundaries. I will be grateful for any thoughts that the Minister might have on that.
On general points, the right reverend Prelate the Bishop of St Albans was right to pick as his analogy the parallel between the internet and open spaces, and how we are happy to regulate to make sure that open spaces are available and accessible to people. We should think hard about that helpful analogy in relation to the internet. I am also very grateful to my noble friend Lord Knight of Weymouth, one of the few people to point out that we all believe that the sunny uplands of the internet—the safe places in which we gambol and play—have always been a fantastic resource for those able to access and use them. Of course there are dangers, and it has been a bit of a Wild West, but we have undoubtedly benefited from the internet. We must be very careful that we do not lose something of value as we go forward.
I take it from what the White Paper says that it is now clear that there is sufficient evidence from authoritative sources of the harms caused by social media to justify statutory action. Indeed, the White Paper accepts that voluntary self-regulation in this area has failed. I think that is right. However, we need to bear in mind that there is a lot going on. For example, we are still waiting for the Law Commission to finalise its review of the current law on abusive and offensive online communications and of what action might be required by Parliament to rectify weaknesses in the current regime. From earlier discussions and debates, I also anticipate that more legislation will be required to eliminate overlapping offences and the ambiguity of terminology concerning what is or is not obscene. I hope we will have a clear view of what is or is not illegal in the virtual world. It is easy to say that what is illegal in the real world should be illegal in the virtual world, but we now know enough to anticipate that changes will be required to get our statute book in the right order. However, if it is clear what is illegal and can be prosecuted, am I right in thinking that the problem is about how to systematise the drafting of effective legislation for those affected by fast-moving, innovative services on the internet? The software of social media services changes every week, perhaps even more often—every day—and, as many have said, it will be very difficult to find the right balance between innovation, freedom of speech and expression, privacy and the harms that have been caused.
We come back, then, to the very basic question: how do we regulate an innovative and fast-moving sector, largely headquartered outside the UK, and what tools do we have available to do it with? It is true that the technologies in use today represent only 10% of what is likely to be introduced in the next decade or so. How do we future-proof our regulatory structures? That is why the idea of a duty of care is so attractive. Like my noble friend Lord Knight, I acknowledge the work of the Carnegie UK Trust on this, in particular that of Will Perrin and Lorna Woods. There is an earlier legal principle in play here: the precautionary principle that came out in the late 1990s. Its strength lies in requiring a joint approach to as yet unknown risks and places the companies offering such services in the forefront of efforts to limit the harms caused by products and services that threaten public health and safety, but always in partnership with the regulator, to make this public space as safe as the physical space, as the analogy would run.
We support the Government’s proposals for primary legislation to place a duty of care on the social media companies to prevent reasonably foreseeable harm befalling customers or users and to build in a degree of future-proofing that encompasses the remarkable breadth of activity that one finds on these social networks. Having said that, it is important that we think hard about the regulator. This is the point I wanted to come back to. Under a duty-of-care approach, a regulator does not merely fine or sanction but plays an active role to help companies help themselves. It would be perverse not to utilise, for example, the experience and expertise of Ofcom in these earlier stages because it already has a relationship with so many of these companies. I hope that the lessons learned by the Health and Safety Executive over the years will also be tapped because there are other examples, which we will come to.
A few detailed points raised in the debate should be at the forefront in the Minister’s summing up. One is that we do not know enough about the practicalities of physical human monitoring—a point raised by my noble friend Lord Haskel. Here, transparency must be the key. Do we really know what goes on in what we do? If it is all done by automated screenings and robotics, and there is a limit on physical human activity, we will never get to the point where we can rely on companies sufficiently. This is an important area, and of course this is before we start raising issues about the dark web, as my noble friend did.
As others mentioned, we are still not clear about what the real issues are between harmful and illegal content, particularly the contextual issues raised about questions of harm. Clearly, as raised by the noble Viscount, Lord Colville, there is the danger of a chilling effect on innovation and development, and I hope that will be borne in mind. We also have to think about the economic and social disruptions. These activities may well be social in terms of social media but their impact on the whole of society is very important and we need to make sure that the rules and regulations are in place for that.
With regard to the regulator, there is also the question of what other regulatory functions there should be. When we get to the proposed Bill, we will need to spend some time exploring the boundaries between the ICO and the new regulator, and if it is a new regulator, how that boundary will work with Ofcom. I am sure that point will come up later, so it may not need a response today.
A number of noble Lords mentioned addiction and I have a lot of sympathy with that. I do not think that we have really got to the bottom of the issues here. Addiction to gambling is pretty well known about but gaming is becoming increasingly common in discussions about addiction, and the noble Viscount was right to raise it. There is not much in the White Paper about the research, development and educational work around all this activity. Perhaps the Bill will contain more about those issues once further development and discussions have taken place.
As my noble friend Lord Puttnam said, research on its own, and support for education about the technologies, is not really what we are about here. Both he and my noble friend Lord Knight pointed out that knowledge about the technology does not get you to the point where you understand what the information that you lack is doing to your perception of the world and your views about how the world is going. We need to educate and train people and offer them support, whether they are vulnerable or not, so that they can realise when the facts have been distorted and what they think is true is in fact misinformation. That is a completely different approach and I hope the Minister will have something to say about it when he responds.
This is such an interesting and complex area that we should spend more time on it than has been available to us thus far. The idea of pre-legislative scrutiny of the Bill, and certainly more discussion and debate, is attractive. I hope it finds favour with the Minister.
(7 years, 6 months ago)
Lords ChamberAt the end insert “but that this House regrets that the draft Regulations do not, contrary to the recommendation of several consumer bodies, make provision for the maintenance of surcharge-free roaming for customers in the United Kingdom”.
My Lords, I am very grateful to the Minister for introducing this SI and for his very clear explanation of the issues that were raised by the Secondary Legislation Scrutiny Committee, to which I may want to return. The department has had a good reputation in recent years for steering through some of the most complicated issues affecting modern society, concerning the internet, communications and related issues, with some skill. It is good that it is planning and thinking through some of the issues that have engaged this House, particularly in recent legislation concerning such issues as data protection and internet safety. We look forward to further work on that, with a White Paper coming soon. I never know what “soon” means, but the Minister is nodding so it will presumably be before Christmas.
Variations on a theme are always interesting. However, I think that in recent weeks the department has not covered itself in glory. I thought that the decision on portability was wrong. Having seen the negotiations about that I know that there is considerable consumer interest in being able to take content that one has paid for on holiday and to use it in other territories. To find that being taken away after such a short period of time is going to be a disaster. I think that this issue about roaming is also going to be a problem for the Government when people realise what has happened and what decisions have been taken. I mention this because I want to go a little further into some of the background, although I know there has been some change and I hope that the Minister will flesh that out when he comes to respond.
We had a big discussion about roaming. I like this word “roaming”. It brings visions of going with one’s beloved at the end of the day with the sunset and enjoying whatever one does in those circumstances. Of course, it is not true when you cannot get the mobile signal that will allow you to communicate with your beloved these days. You cannot get it in London, let alone in the far reaches and romantic parts of the country. I do not know why I said that, but it gets us into a broader area of discussion and debate.
It is more worrying when the expression is, “roaming away from home”.
Indeed. The reason I touched on this is because of the irony around the issue of roaming, which we are going to centre this debate around. The EU regulation that brought this in is exactly as the noble Baroness said: the standard that the EU was trying to establish was that people travelling in Europe would have the same quality of service that they have at home. Indeed, the regulation was called the “roam like at home” regulation. Of course, we do not have roaming at home, in any sense of the phrase. The issue, therefore, is why? If you are in a not-spot you are not able to connect to get all the benefits of the internet and the mobile telephony that the Minister was talking about. Yet the Government have consistently set their mind against opening up the possibility of having some roaming charges in this country.
I know there is development on this, and I want the Minister to cover that, but I refer to the exchanges in the other place on the Urgent Question to which he referred, particularly that between Robert Halfon and Jeremy Wright, the Secretary of State. Robert Halfon asked why it was that,
“too many people do not get a mobile phone signal in our country? Indeed, we cannot even get one in many places in the House of Commons. Will he examine access to roaming charges, as his predecessor, the current Home Secretary, did, and allow people who cannot get a signal to roam on to other domestic networks?”
We spent a lot of time pursuing the Government on that in debate on the Digital Economy Act; although we did not get it through in the end, I still think it is an issue. However, the Secretary of State responded by saying the Government were committed to reaching,
“95% of the UK landmass with a mobile phone signal. I am determined to ensure that we meet that target, and to do so, we will rule nothing out that may achieve our objective”.—[Official Report, Commons, 7/2/19; col. 416.]
I also note that the department put out a Statement on the same day suggesting that it is going to consider the question of roaming at home more favourably. In other words, there is a proposal in the SSP for Ofcom that consideration should be given to the possibility of making sure that access to mobile telephony is increased, possibly by looking at this question of roaming at home. Can the Minister confirm whether this is now on the table again? Could he sketch out for us the actual issue that will be assessed under the SSP, and what the timescale will be? That would help us considerably on this issue.
There is no doubt at all in my mind—and it comes up every time we talk about mobile telephony in this House—that the current situation is not working. It is predicated on a competition between those who have licences to cover the country to the maximum effect, but it is clearly not working. It does not work locally; it does not work in far reaches; it certainly will not do the job it needs to do to tie up the wi-fi high-speed rollout, which will also require mobile telephony to get to the final few per cent of our population. We have a real problem facing us; if we cannot get the investment and we cannot get the technology to work, then we will need something better than what we currently have. I hope the Minister will be able to confirm that that is now firmly on the table.
If that is the case, then I return to the narrow question about why the SI is detailed in this way. I have two particular questions. The Minister touched upon the first but did not cover it in any detail—again, I hope there is more to come in his response. In Northern Ireland, there is obviously an issue about picking up signal from the other side of the border. In a single-country landmass, where there are no official borders or changes, one would think that this description of different approaches to the way in which people can receive signal would be entertained. What is meant by the Minister’s decision that measures will be taken to ensure that existing legislation preventing inadvertent roaming is going to be brought into effect in Northern Ireland? My understanding is that there is actually a benefit to those who live in Northern Ireland; they are getting access to better signal from south of the border, and they should not be penalised by inadvertent regulation—rather than inadvertent roaming—which will prevent them getting the service benefiting them and their businesses.
I have a similar problem in relation to Scotland. When I was on top of the mountain Sgorr Ruadh only six months ago, I discovered to my considerable interest that when you point your mobile phone in a certain direction, you actually start picking up signal from Iceland—it is really quite close, and I think the wind was in the right direction. If that is the case, why are we blocking this in Scotland in respect of other countries which have services that, for whatever reason, reach our far shores? Are the Government seriously saying that that will be made illegal, or is it again something that will be dealt with in a more appropriate arrangement?
The central point here is that the Government have made all the right noises about what they want to do in terms of telephony, wi-fi and investment in broadband. They have been overtaken to some extent by the technologies moving forward faster than some of the legislative processes; until now, the department has always been quite good at spotting this, and I hope it will continue. It would be great if the Minister could respond to some of the future issues that have been raised in this debate and try to give us some confidence that the Government are ahead of the game and that future statements will be made to give us confidence that they are addressing our concerns.
We have had discussions with operators, and it is correct that they have said that they have no plans to do that after Brexit. They have not said that if they are charged increased charges by foreign operators, they will absorb all the costs ad infinitum, for the rest of time, irrespective of what they are. That is not an unreasonable position. The point is that since roaming as if at home has been introduced, consumer requirements have changed, what consumers want has changed, the methods and technology has changed and consumer data usage has changed. For example, I think there is four times as much data being consumed as phone calls. It is very difficult to compare the situation 10 years ago, before any caps came in, to what will happen now.
However, in this country, there is competition between operators, which does not exist in all European countries, so the competitive element is very much at the forefront of consumers’ minds, but we are not requiring operators to accept a differential status, a one-sided regulation. I shall come to that later. When the Regulatory Policy Committee considered the impact assessment, it said that it was satisfied that any impact on price changes will not be a direct result of this SI.
The noble Lord, Lord Foster, asked who we have consulted. We have consulted the big four operators O2, Vodafone, EE and Three, the mobile virtual network operators Sky, Virgin Media and Lebara, trade bodies Mobile UK, the Broadband Stakeholder Group and many consumer groups. He also asked what were the views of the mobile network operators. They expressed similar concerns about this scenario. Of course they were concerned about not being party to the EU roaming regulation, but that is a function of leaving the single market. They did not believe that the regulation mandating surcharge-free roaming could and should endure, for the reasons I mentioned, but I confirm that they said that, because of customer demand, they have no current plans to reintroduce roaming surcharges. That is not an unlimited guarantee forever, as I think I said.
As for BEREC, I agree entirely with both my honourable friend in the other place and the noble Lord, Lord Foster, that our relationship with the European regulator has been beneficial not only to us but to BEREC. We are one of the leading regulators in the EU. Of course, if there is an agreement and an implementation period, the Government will seek arrangements with the EU or BEREC and, if there is no deal, it will be desirable for the Government to seek participation in BEREC. We have agreed in government—not just in DCMS but more widely—that that is beneficial. We will therefore continue making overtures to BEREC to try to have an arrangement that will involve not full membership but, if you like, associate membership where we can contribute our views.
I turn to the amendment to the Motion, which implies that we should not have done what we said we would and capped roaming charges. I explained in my opening speech why the UK cannot retain surcharge-free roaming in law in the event of no deal. The instrument recognises this by correcting deficiencies in retained EU law and removing rules on wholesale and retail charges that are simply unworkable if we leave the EU without a deal.
The noble Lord, Lord Stevenson, prayed in aid the recommendations made by consumer bodies. As I said, we have had a number of conversations with them and provided detail of those interactions to the Secondary Legislation Scrutiny Committee in advance of its report. I mentioned that it noted the benefits of surcharge-free roaming, but the fact is that when the UK is outside the single market, we will not be able to control the charges levied on UK mobile operators by their European counterparts, because this Parliament has no authority over them. The consumer organisations recognise that. For example, Which? stated on its website on 7 February 2019:
“In order to keep ‘roam like at home’ going, it is likely a similar mutual cap”—
by which it means on wholesale prices—
“would have to be agreed for it to be cost effective for mobile operators”.
Let us be clear on the implications of the noble Lord’s amendment to make provisions to retain surcharge-free roaming. The policy would explicitly put British companies at a disadvantage, compared with foreign competitors, by capping their retail charges but allowing EU operators the freedom to charge them whatever wholesale rate they like. It would put roaming at risk for some operators, thus removing competition. It could therefore force British network operators to increase their overall prices to recoup the foreign charges, so the policy could increase consumers’ costs.
However, it is worse than that. It would mean that people who choose to remain in this country are subsidising those travelling to Europe. The policy would increase the risk of legal uncertainty. Lastly, it would penalise heavily smaller mobile virtual network operators, because they use the physical networks of the main operators and therefore must accept the increased costs without a corresponding network usage to offer EU operators in return. To sum up, the policy could increase costs, have a negative impact on consumers and increase the legal risks around future roaming policy.
Which? suggests that the UK should seek to include mobile roaming in a deal with the EU and in trade deals with other countries. As government Ministers first set out in Answers to Written Questions last June, mobile roaming could form part of any trade negotiation we have with other countries after we leave the European Union, and the Government are exploring all options. Any arrangements on mobile roaming would be subject to negotiations. In the meantime, as I said before, there is no reason to prevent commercial negotiations between UK and EU operators.
For reasons noble Lords will understand, it is too early to detail exactly the future arrangement with our European partners. In the event of a no-deal exit, the amendments in the SI are essential. They will ensure legal clarity for consumers and businesses, retain all operable parts of current roaming law and protect consumers in the event of a no-deal exit. Meanwhile, I repeat that the largest four operators have no current plans to reintroduce charges, so on exit day and thereafter there will be no change.
I hope therefore that we can all agree that it is in the clear interests of British consumers and businesses that this SI is in place in the event of a no-deal outcome. In the light of my remarks, I hope that the noble Lord will feel able to withdraw his amendment and I hope that these regulations will be approved.
I am grateful to the Minister for a full and wide-ranging debate. I am also grateful to the noble Lord, Lord Foster, for adding to my comments on the amendment so that we could debate and discuss it.
I am left with two thoughts. First, this Government have not been slow to interfere in a market where they felt that the competitive environment was not as perfect as it could be; I am thinking of the price cap brought in for domestic energy, which was accompanied by a commitment to look more widely at how prices are set in the market. That is not terribly different from mobile operators relying, as they do, on those who generate and those who sell. The two sides of the energy equation have analogues in what we are talking about here in mobile telephony. I take the general point that, after consideration, the Government decided that this was probably not the best decision to take, but I wonder exactly how they have balanced the interests of operators—both small and large—against those of consumers. I wonder whether we have missed an issue there. The consumer groups the Minister mentioned were unanimous in their view that there was a case for a better regulatory approach. At this stage, the arguments are pretty finely balanced.
Secondly, although I was glad to hear about the measure to look at both home roaming and the wider context, including 5G and all the other issues that must be addressed, Ofcom’s capacity will be squeezed. The Minister did not provide a timescale for the consideration or when the results would come back to this House, but we can look at that outside this session. I hope that there will be time for that. I want it recorded that I am glad that, at last, there is a solution to some of the not-spots and our difficulties with our mobile telephony. We will support the Government seriously pushing Ofcom to come up with a proper plan for this going forward. With those thoughts, I beg leave to withdraw the amendment.
(7 years, 8 months ago)
Lords ChamberThe BBC’s charter was renewed for 10 years. Its job is to provide impartial news, and Ofcom regulates those services. It has been given the financial backing to do that—£3.8 million of licence-payers’ money. I believe that an extra £219 million has been provided over the next four years to increase the number of Russian language programmes that the BBC World Service can produce.
It is clear that Ofcom is doing a thorough and effective job on this very difficult case. We hope it will move forward in an appropriate way. Does this case not raise the wider question of whether the holder of the broadcast licence here is a fit and proper person to carry out the duties for which it is responsible? The issue came up recently during the Sky takeover; there was common ground in the House that the existing rules, both through statute and through the precedents set in previous cases, mean that this is not an effective test. Are the Government going to do anything about that?
I do not want to talk specifically about RT for the reasons I mentioned. Ofcom has sanctions which can include fines, suspension or revocation of a licence if Ofcom deems that suitable.
(7 years, 8 months ago)
Lords ChamberMy noble friend is completely right that the BBC should pay attention to its social responsibilities, and it does. However, in the consultation surrounding the renewal of the royal charter, only 1.5% of people said that the BBC should have advertising. One of the reasons why allowing it would not be an easy solution is that all the other public service broadcasters, which do not start the year with £3.8 billion in subsidy, would find it even more difficult to do their excellent job.
My Lords, going back to the main point, this is a completely classic cock-up by the Conservative Party. It promised, in its manifesto, that this issue would continue until the end of the next Parliament—which I still think is 2022—but the new arrangements are supposed to take place from 2020. To compound the issue, the money runs out in 2020. If, as the Minister wishes, the BBC does continue to offer this arrangement, who is going to pay for it?
When the funding settlement was put down in 2015, the BBC agreed to pay for it in 2020, in return for a five-year, index-linked settlement—the first time that had ever happened. The BBC has had four years to prepare for this; it knew it was coming. That is why we expect it to live up to what was agreed.
(7 years, 9 months ago)
Lords ChamberI am not sure my noble friend is entirely correct. The problem involved Ericsson, a third-party software supplier to O2, and had worldwide effects, so there is no guarantee that his foreign phone would have worked. I hasten to add that that was only for data, not voice.
Does this whole episode not highlight the need to completely reconfigure the universal service obligation, which is failing so badly, to include mobile telephony—it does not at present—and to ensure the whole system focuses more on infrastructure capacity, reliability and service?
As the noble Lord knows perfectly well, the universal service directive, which is the basis for the universal service obligation, only includes fixed-line service. Therefore, it would be impossible under European law to include mobile.
(7 years, 9 months ago)
Lords ChamberMy Lords, this has been a very good debate, and I thank the Minister for his introduction, which allows us to range quite widely over the issues in play. I would observe—and I would not have it any other way—that over the last couple of years, the noble Lord, Lord Ashton, and I, and, indeed, one or two noble Lords who have spoken today, have spent a great deal of time together discussing and debating legislation and regulations which might apply to all pornography, and specifically in relation to protecting children. Some people bond over a coffee, football, the arts or shared hobbies; we do it with porn. In that sense I am with the right reverend Prelate who felt that he had to live it down in some way. I share his pain.
We have covered a lot of ground in this area and, although on the surface it is quite a narrow issue, getting the balance right between personal liberty and necessary regulation is never easy, and it is particularly hard to do given the technological changes that we are witnessing—in particular, the way in which information is now flowing through the internet.
I have been reading back some of the debates we had on the Digital Economy Act, as have others, and at some of the original regulations that we have already looked at which appointed the BBFC as the AV regulator. I want to make it clear that we do not want to hold up these statutory instruments—as noble Lords have already mentioned, they are already quite delayed. I have come to a provisional conclusion that what we have before us will not achieve what the Government intend, and may actually have unintended consequences and run the risk of stalling other, better alternatives, which I think we may have to consider in due course. Others have said this before, but it is worth repeating: these regulations are not future-proof; they are not comprehensive; they do not catch social media; they do not deal with overseas providers; they will not deal with non-photographic images and other more elaborate ways in which pornography is now being purveyed; and they do not bind together the companies involved to try to find a solution.
I will go through the regulations and make comments which are very similar to those that are already there and I will speak a bit to my own regret Motion. I will come back at the end of my remarks to where I think we need to go if we are going to take this issue further.
The general point on which I wish to start, before going on to the points raised by the scrutiny committees, is the argument I made before that a lot of the difficulty we have today with these regulations stems from the fact that we are trying to give statutory powers to a body that is essentially a private company. This is compounded—this comes up in the committee reports —by the fact that Parliament is not used to seeing regulations over which it has no direct authority, because they will be implemented through an arrangement between the department and a private body: the BBFC. In a sense, we are reading largely independent guidelines, fulfilling a mandate agreed within legislation but not subject to the specific scrutiny of this House, or indeed of the other place.
The BBFC is not a statutory body. It has no royal charter, so it cannot be assumed that it will act in the public good. It has a reasonable record, and it has statutory responsibility for videos and DVDs—but its work, for example in classifying films shown in the cinema, is done without any statutory authority. Will this issue be picked up in either the White Paper or the review which the Minister mentioned in his introduction?
My second point relates to the first in the sense that we have still not bottomed out the question of appeals that might arise as a result of the decisions being taken by the BBFC. We tried in the Digital Economy Bill to exert considerable pressure on the Government to get a separate regulator appointed as an appeals body. Indeed, we suggested that Ofcom would have been appropriate. Now we have a situation where the BBFC is the organisation of preliminary determinations and the body of first instance, but it is also the body for appeals. In principle, I do not think it is right that any body, statutory or otherwise, should be both judge and jury in its own cases. I look forward to hearing the Minister’s response. Can this be reviewed as part of the process?
Thirdly, we are skating round the question of what exactly is obscene material. Why do we have two existing definitions—one that is repeated in full in the documents before us but also one that derives from the definition of extreme pornography which is in another Bill? We had a good discussion about this during the DEA. The noble Baroness, Lady Howe, mentioned some of the ideas that were considered and turned down at that time, but it was also raised in the Data Protection Bill—so it will not go away. I think that in the review that is coming, it is really important that we nail what exactly we are trying to say. Either it has to be done in terms of perception or in terms of physical activities. I do not think that it can be both.
Turning to the instruments themselves, on the electronic communications one, which was referenced by Sub-Committee B of the Secondary Legislation Scrutiny Committee and the Joint Committee, the issue seemed to be, as has already been said, the rather odd definition of a “commercial basis”. We are looking for assurances from the Minister in relation to how that will apply, particularly in relation to children who come across internet sources which do not fall within the criteria specified. The second point, which has also been picked up, is the question of one-third of the overall content, which is a very odd way of trying to approach what I think is a sensible idea—that there should be some de minimis limit on what is considered a commercial provider of pornography, but measuring it in the way that has been suggested. Even with the comments made by the department to the committee, the Government have not taken that trick. I look forward to the Minister’s comments in the hope that he will deal with some of the examples given by the Joint Committee, which seem to raise issues.
On the AV guidance contained within the statutory instrument on that matter, again there are suggestions from both committees. The first point is the rather nuanced one made by the Secondary Legislation Scrutiny Committee that, as the BBFC has not provided an exhaustive list of approved age-verification solutions, the Minister himself should explain more fully the types of arrangement which were deemed adequate. He may find that that is better done by correspondence.
The question raised by several speakers of why the Government have not brought forward the power under Section 19 to impose financial penalties is the focus of my regret Motion, and I shall deal with that now. Both Sub-Committee B and the Joint Committee found this a very strange decision, and others have mentioned it as well. I hope that the Minister will be able to respond in full. The argument is very straightforward. Since we have doubts about the whole process and the concerns that exist are about the lack of effective solutions to protect children, one would have thought that the only way in which we can make progress on this is to ensure that the regulator has the effective firepower to get compliance if required to do so. It is interesting that in the documentation, and in the other regulation before us, search engines are fingered. Providers of IT services and providers of advertising can be hit. It is clear from the parallel situation in the gambling world that the support of the payment providers has been absolutely crucial in stamping out illegal practices there. Why have the Government not taken these powers?
On the same issue, but approaching it from the other end, I had problems with the guidance about a non-compulsory, additional, voluntary, non-statutory assessment and certification of age-verification solutions package, which is shown in annexe 5 of the documents before us. I gather that it will be an external agency, probably one of the large auditing firms. I found this very difficult to understand, and would be grateful if the Minister could explain what exactly is going on here. How is it that the ICO, an independent statutory body, is down as having developed this solution in consultation with the BBFC? If that is the case, it seems that its independence has been compromised and I do not see how that can work. In any event, adding another non-mandatory voluntary system seems to be just another way of complicating an already difficult area, as well as raising considerable issues of privacy along the lines raised by the noble Lord, Lord Paddick. Is this a wise step to take at the very start of a new venture? The whole question in relation to making a success of this seems to be in doubt. Will the Minister comment?
Finally, during the debate we held on the first order in this clutch of statutory instruments, which confirmed the BBFC as the age-verification regulator, the Minister confirmed that it was not the BBFC’s job to determine whether what is being offered on its sites to adult users is lawful. Can the Minister confirm that, despite the slightly ambiguous wording in some places in the draft guidance, the role of the BBFC is, as stated in the regulations, limited to assessing that a person offering such services,
“has met with requirements of section 14(1) of the Act, to secure that pornographic material is not normally accessible by children and young people under 18”?
In conclusion, I ruminated earlier about whether this was the right approach, given the need to get a proper grip of the situation. Let us put in context the fact that, through the Data Protection Act, we have set up and now brought to fruition a data ethics and innovation commission, which will deal with issues of personal data, privacy and the way in which they interrelate. We have begun to see the new, age-appropriate design approach to the way in which internet service providers have to look after the rights of children who get on to their sites. We have discussed the precautionary principle in relation to internet services more generally.
Finally, I will pose a question to the Minister. We have in front of us top-down, traditional approaches to regulation: setting limits, engaging in the possibility of serious action if the limits are breached, and making sure that—as far as possible—we are able to contain a situation that we think is now unacceptable. However, the only way to get by on this is if the companies themselves are involved, so a duty of care approach might be much more fruitful as a way forward. I would be grateful for the Minister’s comments on that.
I am sure that the noble Baroness, Lady Howe, was about to leap to her feet but, to save her doing so, I mention to the Minister that he did not answer the question which she posed, and which was picked up by the noble Baroness, Lady Benjamin, about whether he would find time for the excellent two-paragraph Bill which she has in process and which would solve many of these problems.
I had not forgotten that. It would obviously be difficult for me to commit to finding the necessary time but I will take that back to the department. I am not sure that it is currently within the plans of the Chief Whip to bring forward that legislation but I will ask. I understand the point that is being made but, as I said, the issue may well be covered within the review. I am afraid I cannot go any further than that tonight.
As for ancillary service providers, the BBFC and the DDCMS have been engaging with several companies. They have already agreed to act, as doing so is in line with their current terms of service. Therefore, we are optimistic that the voluntary approach will work, and of course that will be reviewed.
The right reverend Prelate, the noble Earl, Lord Erroll, and others talked about the rationale for choosing one-third of content as the appropriate threshold. During the passage of the Bill, it was established that the focus should be on commercial pornography sites and not on social media. There were good reasons for that but I do not want to revisit them—that is what was decided. The one-third threshold was regarded as proportionate in introducing this new policy where sites make pornography available free of charge. However, websites that market themselves as pornographic will also be required to have age verification, even if less than a third of the content is pornographic.
A third is an arbitrary amount. It was discussed and consulted on, and we think that it is a good place to start on a proportionate basis. We will keep this matter under review and, as I said, it will be one of the obvious things to be taken into account during the 12 to 18-month review. The noble Lord, Lord Morrow, asked how it will be measured. It will be measured by assessing the number of pieces of content rather than the length of individual videos. It will include all pornographic images, videos and individual bits of content, but the point to remember is that the threshold is there so that a decision can be made on whether it is reasonable for the regulator to assume that pornographic content makes up more than one-third of the entire content. This will be done by sampling the various sites.
The noble Earl, Lord Erroll, asked about ISP blocking and suggested that everyone would try to game the system to get out of meeting the requirements. That is not what we believe. The BBFC has already engaged with ISPs and we are confident that this will be an effective sanction. The wording in the guidance indicates that the regulator should take a “proportionate approach”. However, we are grateful for the noble Earl’s help. I am sure that he will also help during the review and later in the process when it comes to online harms. I see that he wants to help now.
(7 years, 10 months ago)
Lords ChamberTo ask Her Majesty’s Government what steps they will take to maintain free television licences for those over the age of 75.
My Lords, we know that people across the country value television as a way to stay connected with the world. The Government have guaranteed free licences for those over 75 until 2020. We agreed with the BBC that responsibility for the concession will transfer to it in 2020. It confirmed that no decisions will be taken until the public have been fully consulted, but we have been clear on our expectation that the BBC will continue the concession.
My Lords, in its manifesto the Conservative Party actually promised free TV licences for the over-75s until 2022. However, the BBC is currently consulting on “what, if any” licence fee concession should be in place for older people from June 2020. The ONS classifies the BBC licence fee as a tax. Will the Minister point to the section in the royal charter that gives the BBC the power to levy taxes? He will recall that he said, on 29 March 2017:
“I reiterate that taxation is a matter for the elected Government”.—[Official Report, 29/3/17; col. 624.]
Does he still stand by that statement and will he join me in calling on the BBC to withdraw this disgraceful consultation?
The BBC is doing exactly what it agreed when the settlement was put in place in 2015. We agreed at that time to provide a continuous licence fee, increasing by inflation, for five years. That had never been done before. We agreed to close the iPlayer loophole, which was what it wanted. In return, the BBC agreed to take on this concession. However, we have been clear that we expect the BBC to continue with this important concession. It was agreed by the BBC, Parliament and the Government.
(7 years, 10 months ago)
Lords ChamberMy Lords, I am grateful to the Minister for repeating the Statement made elsewhere. He was present for part of the debate on artificial intelligence on Monday. On reflection, it is a bit surprising that the Government were not able to accelerate the announcement of this new body. It would have helped a lot in that debate. No doubt the tyranny of the grid is to blame again, but many of us would have felt the benefit had we known, not least, that the membership of the board had been enhanced by those Members of your Lordships’ House already referred to.
To go back in history a bit, the Centre for Data Ethics and Innovation came out of amendments we proposed during the passage of the Data Protection Bill, but it was built on excellent work by the Royal Society and others. We should pay tribute to the groundwork that led to today’s announcement. Those amendments had a lot of support from around the House and would have gone into the Bill had we been able to push them further, but we could not get them within the bounds of the Bill’s framing. We should say clearly that the model we had in mind then was the independent Human Fertilisation and Embryology Authority. In preparing the thinking in this new area of advanced technology and data processing and protection, one needed a carefully balanced body that could regulate in the context of difficult ethical issues raised by research and development.
I will now ask a number of questions about the body itself, and I hope that the Minister will respond, in writing later if not now. The body was originally intended to be an independent statutory body, but it is not because no powers have yet been established. What is the progress on that? The reports I have read suggest that that is still an objective of the Government, although they are making a virtue of the fact that it is an advisory committee in the interim period. In some senses, they will probably be judging its success, which is a bit worrying given that the whole benefit would be that it was independent of government, long-term and able to look without fear or favour at the big issues. If it is an advisory committee of the department, how independent will it be in practice? Is funding secured? Can it spend what it needs to get the research and advice it needs? How much of the original thinking about the HFEA remains? As an advisory committee, can it request information? One problem is the difficulty of extracting information from the behemoths that populate the international information society.
The press release rightly describes the membership as “stellar”. Given the names already mentioned here, I think we should recognise that. I confess that my application was weeded out very early in the game. This was unfortunate, because I would have been delighted to be part of that. Having seen the full list and heard why they were chosen, it is clear that the right decisions have been reached and I bear no malice to those responsible—honest. If the membership question comes up later, I am still around.
In the absence of the new centre starting up, we have only two or three areas of activity. We have a statement as a result of the consultations that took place. It talks about the focuses being to provide clear guidance and regulation and to lead debate about how data can be used in the future. But there are still some problems that need to be resolved, and I will be interested to hear the Minister’s comments. The AI report we discussed at length in a very good debate on Monday, when there were notable speeches from the right reverend Prelate the Bishop of Oxford and the noble Lords, Lord Reid and Lord Browne, shows the range of issues that are going to be up for discussion. These are very abstruse areas of intellectual activity such as ethics and the nature of machines—whether they are responsible for their actions and, if so, how any redress can be obtained. The noble Lord, Lord Browne, posed questions about intelligent weapons and what controls must be placed on them. It is a very stretching agenda. All we know is that issues currently in the list include data trusts, algorithms and consumer experiences. I do not think there will be a shortage of those. Can the Minister explain what the process will be? I gather an overall strategy document will be revealed.
There are some concerns about the balance between advice and regulatory action. I think the plan would be for advice to be offered to government and regulatory action to be taken by existing or other bodies. Could we have confirmation of that? There is a question about the balance between ethics and innovation. Clearly, innovations are difficult to support if they raise big ethical issues too quickly; they often need to be tested over time and analysed. It would be useful if there were a way forward on that. Of course, there is the whole question of how the Government intend to treat public data, its use and value for money, and the extent to which it will be available.
Lastly, the new centre, which I wish extremely well, enters a rather crowded space with the Information Commissioner’s Officer, Ofcom and the CMA, all of which have statutory functions in this area, but perhaps I may counsel that also to come are the Alan Turing Institute, which is now up and running, and the Open Data Institute. Therefore, there will be a need for some time for this whole process to settle down and for leadership from the Government on how it will work.
The responses to the consultation showed a clear public wish for consistency and coherence, and I hope that in that process there will be room for consultation. I do not wish the new body to be a proselytiser for data or indeed for artificial intelligence, but there is a difference between proselytising and being in an explanatory mode, reassuring people and explaining to them the benefits as well as the risks of this new technology. The centre needs to be public facing and fully engaged in that process, and I wish it well.
My Lords, I too thank the Minister for repeating the Statement. He was missed in the debate on Monday. I have had the benefit of reading the Government’s response to the consultation on the Centre for Data Ethics and Innovation. I share the enthusiasm for the centre’s creation, as did the Select Committee, and, now, for the clarification of the centre’s role, which will be very important in ensuring public trust in artificial intelligence. I am also enthusiastic about the appointments—described, as the noble Lord, Lord Stevenson, said, as “stellar” in the Government’s own press release. In particular, I congratulate Members of this House and especially the noble Baroness, Lady Rock, and the right reverend Prelate the Bishop of Oxford, who contributed so much to our AI Select Committee. I am sure that both will keep the flame of our conclusions alive. I am delighted that we will also see a full strategy for the centre emerging early next year.
I too have a few questions for the Minister and I suspect that, in view of the number asked by me and by the noble Lord, Lord Stevenson, he will much prefer to write. Essentially, many of them relate to the relations between the very crowded landscape of regulatory bodies and the government departments involved.
Of course¸ the centre is an interim body. It will eventually be statutory but, as an independent body, where will the accountability lie? To which government department or body will it be accountable? Will it produce its own ethics framework for adoption across a wide range of sectors? Will it advocate such a framework internationally, and through what channels and institutions? Who will advise the Department of Health and Social Care and the NHS on the use of health data in AI applications? Will it be the centre or the ICO, or indeed both? Will the study of bias, which has been announced by the centre, explore the development of audit mechanisms to identify and minimise bias in algorithms?
How will the centre carry out its function of advising the private sector on best practice, such as ethics codes and advisory boards? What links will there be with the Competition and Markets Authority over the question of data monopolies, which I know the Government and the CMA are both conscious of? In their consideration of data trust, will the government Office for Artificial Intelligence, which I see will be the responsible body, also look at the benefits of and incentives for hubs of all things? These are beginning to emerge as a very important way of protecting private data.
What links will there be with other government departments in giving advice on the application of AI and the use of datasets? The noble Lord, Lord Stevenson, referred to lethal autonomous weapons, which emerged as a major issue in our debate on Monday. What kind of regular contact will there be with government departments—in particular, with the Ministry of Defence? One of the big concerns of the Select Committee was: what formal mechanisms for co-ordinating policy and action between the Office for Artificial Intelligence, the AI Council, the Centre for Data Ethics and Innovation and the ICO will there be? That needs to be resolved.
Finally, the centre will have a major role in all the above in its new studies of bias and micro-targeting, and therefore the big question is: will it be adequately resourced? What will its budget be? In the debate on Monday, I said that we need to ensure that we maintain the momentum in developing our national strategy, and this requires government to will the means.
(7 years, 10 months ago)
Lords ChamberTo ask Her Majesty's Government what plans they have to (1) impose a statutory duty of care upon large providers of social media services within the United Kingdom in respect of the users or members of those services; and (2) establish a regulator to enforce such a duty.
My Lords, in some senses this short debate today is a continuation of good and important discussions we had during the Digital Economy Act 2017 and the Data Protection Act 2018—the same stars, perhaps, a smaller audience and a much smaller scale, but nevertheless the points may be similar. In particular, the debate that I hope we shall have tonight builds on concerns about the approach being taken under the Digital Economy Act to require age verification for access to commercial pornography; it picks up on the pioneering work led by the noble Baroness, Lady Kidron, during the Data Protection Act 2018, requiring all internet providers to have age-appropriate systems in place, and it relates to discussions we had in the same Bill about the possibility of introducing a personal copyright for data and the question of whether individuals could be data controllers of their own data—issues which I hope will be picked up by the new Centre for Data Ethics and Innovation.
The three areas I want to concentrate on tonight are: first, who is responsible in government for this whole area of policy and what is the current timetable? Secondly, what is the ambition? Is it a charter, a voluntary code or primary legislation? What is it? Thirdly, I want to use this debate to suggest that the Government should legislate to place a duty of care on social media companies, enforced by a trusted regulator and underpinned by direct responsibility and regulations, to protect people from reasonably foreseeable harms when they are using social media services.
On the first point of who is in charge, we welcomed the Government’s May 2018 response to the Green Paper consultation, announcing a White Paper in the near future and setting out plans for legislation that will cover:
“the full range of online harms, including both harmful and illegal content”.
That is a quote from the Statement. I read, in an interview in the Daily Telegraph, that the Home Secretary is now promising new laws to regulate social media firms, saying:
“We will therefore be bringing some form of legislation which we will set out in a White Paper on online harms in the winter”.
I take that to be a way of saying “soon”—hopefully, the curious phrase “some form of legislation” is something the Minister can unpick when he gets up to respond later this evening. Having said that, legislating to ban illegal content is one thing, and difficult enough, but defining, let alone banning, what is “harmful” is brave and will be leading us into subjective decisions about material which is always going to be problematic.
The previous DCMS Secretary of State was fond of referencing an idea for a digital charter. That has gone a bit quiet recently. Can the Minister give us an update? What is it? How is it to be established? Will it have the effect of primary legislation? Is this the legislation the Home Secretary is referring to in his gnomic Statement? Will there be powers to fine and ban?
Who else is prowling around in this jungle? The new Secretary of State for Health is calling for action on online harms, focusing on the mental health impacts of social media on young people and announcing, at the time of his party conference, that he had asked the CMO to draw up screen-time guidelines. Artificial intelligence is also a concern here, so BEIS has an interest. What happens in Scotland, Wales or Northern Ireland? It is a crowded field. In a sense, all this activity is good, but it leaves open the question of who is leading on this? The Home Office does not normally share responsibilities willingly, and joint legislation is not a model that generally works well in Whitehall. Can the Minister confirm whether DCMS is still in the lead and what is the current timetable? Would spring be a fairer assessment than winter?
Secondly, what is the ambition? Over the last few months, more evidence has emerged from authoritative sources of the harms caused by social media. Ofcom and the ICO jointly published some research on the harms experienced by adult internet users, with 45% indicating that they have experienced some form of online harm.
Last week we heard in the other place the Information Commissioner’s startling evidence to the Select Committee about the Cambridge Analytica scandal, and there is more to come on that. Only 10 days ago, the Law Commission published a very interesting scoping review of the current law on abusive and offensive online communications, confirming that there were weaknesses in the current regime. It is doing more work on the nature of some of the offending behaviour in the online environment and the extra degrees of harm that it can cause. It is also looking at the effective targeting of serious harm and criminality, and at eliminating overlapping offences and the ambiguity of terminology concerning what is or is not “obscene”. The NSPCC has recently highlighted what it calls the “failure” of self-regulation in this area. The Children’s Commissioner has also called for action, saying:
“The rights enjoyed by children offline must be extended online”.
One problem here is clearly evidence, which is vital to drafting effective legislation, but it is not easy to pin down evidence on fast-moving, innovative services like the internet. The software of social media services changes every week and perhaps more often—every day—and it will be difficult to isolate long-term impacts from particular services through “gold standard” randomised control trials. The potential range is very wide. In their response to the Green Paper consultation, the Government said:
“Potential areas where the Government will legislate include the social media code of practice, transparency reporting and online advertising”.
They also referred to,
“platform liability for illegal content; responding to the … Law Commission Review of abusive communications online; and working with the Information Commissioner’s Office on the age-appropriate design code”.
They added that a White Paper would also allow them to incorporate,
“new, emerging issues, including disinformation and mass misuse of personal data and work to tackle online harms”.
That all sounds great but questions remain. Will this result in a statutory code and regulations? Will there be penalties for non-compliance or breaches? If so, will they be on the right scale, and by whom will they be administered? Will it be Ofcom or a new regulator? And what about companies based outside the UK?
We come back to the basic question of how we regulate an innovative and fast-moving sector, largely headquartered outside the UK, and what tools we have available. If it is true that the technologies in use today represent only 10% of what is likely to be introduced in the next decade or so, how do we future-proof our regulatory structures? This is where the idea of a duty of care comes in. Following public health scares in the 1990s, the Health and Safety Executive adopted a rigorous version of the “precautionary principle”, requiring a joint approach to as yet unknown risks and placing the companies offering such services in the forefront of efforts to limit the harms caused by products and services that threaten public health and safety, but always working in partnership with the regulator.
We might find that this principle is already in play in this sector. In response to a Written Question that I put down earlier this year, the noble Baroness, Lady Buscombe, confirmed that a duty of care contained in the Health and Safety at Work etc. Act 1974 applies to artificial intelligence deployed in the workplace. Therefore, robotic machines are caught by the Act.
That principled approach is now being advocated by a growing number of organisations and individuals—indeed, it was mentioned by the Home Secretary in the interview I have already quoted. The Carnegie UK Trust has suggested that the way to do this is for primary legislation to place a duty of care on the social media companies to prevent reasonably foreseeable harm befalling their customers or users. This builds in a degree of future-proofing and encompasses the remarkable breadth of activity that one finds on social networks.
This approach is based on a long history of legislation protecting against harms: the Occupiers’ Liability Act 1957, which is still in force today; the Health and Safety at Work etc. Act 1974, which contains three duties of care; and the Health and Safety Executive, the regulator, which has stood the test of time. It is interesting that both regimes defend the public interest in areas that might at first glance be considered remote from the public interest—private land and commercial workplaces—but in truth they should serve as an example to us in regulating, in the public interest, these newly powerful technologies. After all, social networks are environments built in code by private companies for what are often super-profits. Everything that happens in those environments either is governed by code that the company has provided or takes place under the terms and conditions that the companies set.
Imposing a duty of care on social media companies might produce a mutual advantage in practice. A duty of care is not about total risk reduction, stifling all innovation; it is about a company having a legal responsibility to have a clear grasp of what risks are inherent in its current and future products and services, and then taking the right steps proportionate to the severity of those risks: highly risky activity with high-potential harms requires strong action; low-risk activity, far less or even none. The companies that can show they are taking reasonable actions to mitigate the harm that their services can cause will have a competitive advantage. The Ofcom/ICO study shows that there is considerable concern among users about what the social media companies are doing.
We all care about red tape. Bad regulation is to be avoided, not least because it represents cost to the economy. However, good regulation is an investment: a company investing in actions to prevent reasonably foreseeable harms is following the most economically efficient route to reducing those harms. Otherwise the costs fall on society. If it is right to operate a “polluter pays” principle, whereby the costs of pollution prevention and control measures are met by the polluter, why is that principle not equally valid in the social media companies?
Finally, the choice of regulator will be important. Under this proposal, the regulator does not merely fine or sanction but plays an active role to help companies help themselves. The regulator should gather and broker best practice across the industry. We probably need to look at best practice in financial services and environmental regulation, and even at the Bribery Act 2010 and the strong penalties under the Health and Safety at Work etc. Act 1974. We should also consider whether personal liability should attach to the directors and executives of the companies that are guilty of transgression.
In conclusion, I put it to the Minister that we now have enough credible evidence of harms emerging to invoke the well-established precautionary principle, and that the answer to many of the problems we can see in this fast-developing sector, many of which are raised by the Green Paper, may lie in moving to a joint system of risk-based regulation for social media companies operating in the UK, backed by a powerful regulator. We look forward to the Government’s White Paper, as well as to the answers to my initial questions, and to debating these issues further.