(3 days, 1 hour ago)
Lords ChamberMy Lords, I strongly support Amendments 44A and 61 to 65 in the name of the noble Baroness, Lady Kidron, who is to be congratulated on raising this incredibly important and timely subject, her doughty leadership on these issues, and an absolutely first-class speech. I regret that I was unable to take part in Committee.
I will talk about the profound significance of these amendments for the media, although they are equally important across all the creative industries, which I know we will hear about. I declare my interest as deputy chairman of the Telegraph Media Group and note my other interests in the register.
The key point is that an effective, enforceable and comprehensive copyright regime is absolutely fundamental to the sustainability of a free, independent media. Without it, the media cannot survive. Publishers have to invest huge amounts of money in high-quality journalism, investigative reporting, world-class comment and content. That they can do so is because copyright laws protect this content, ensuring the commercial viability of publishers —print and broadcast—as well as the livelihoods of individual journalists and freelancers.
We talk a lot in this House about the threats to the free media resulting from digital, which smashed to pieces the business model that once sustained publishing and quality journalism. Publishers from across the spectrum have found innovative ways to adapt to that and produce new paths to commercial success to maintain their investment in independent investigation and reporting, which is the very lifeblood of a democracy. Parliament, with cross-party support, has assisted through the Digital Markets, Competition and Consumers Act, which establishes a tough competition regime to control the untrammelled power of vast, unaccountable platforms. But just when the media has been successfully adapting to the new world, along comes a far graver threat—AI—and government proposals flying in the face of the DMCC Act to weaken, through a sweeping text and data-mining exception, the UK’s gold-standard copyright regime, which is the absolute bedrock of quality, independent, regulated media.
I know how strongly noble Lords opposite and from across the House value the fundamental role our free media plays in our democratic society, because without it, all of our freedom is in peril. The Bill and the connected government consultation will either help it or kill it; I am afraid it is as stark as that. Of course I welcome the Government’s apparent aim to provide transparency and facilitate licensing, but their preferred option of an exception—on which there has been no impact assessment, as the noble Baroness, Lady Kidron, said—is fundamentally flawed and wholly impractical.
Instead, we need with these amendments to ensure three things happen to make investment in journalism possible through an effective legal regime protecting copyright, creativity and innovation. That is transparency, the power of control over how news content is used, and fair remuneration. Only that will drive the dynamic licensing market that is necessary to ensure both the media and AI sectors flourish and grow. These imaginative amendments will achieve that by expanding UK copyright law to cover any AI model linked to the UK, compelling, in a strikingly simple way, AI firms to provide information about how they scrape content and what they scrape, and ensuring we have the enforcement powers necessary to make big tech—which is so adept at arrogantly ignoring what it does not like and what this House says—take notice. That is why I will support these amendments, and I am proud to do so.
I must add that I am deeply disappointed that the long-standing commitment of my party to upholding the values of a free press and supporting the sustainability of the British media has not extended to formal support for these amendments. It is incredibly short-sighted.
If these amendments pass, as I hope they will, this legislation can complete a landmark trio of laws—with the Online Safety Act and the DMCC Act—to make the giant platforms regulated and accountable. Like others in this debate, I want to make it clear that I support the noble Baroness’s absolutely vital amendments not because I am anti-AI but because I am pro free independent media, pro the creativity which fuels it, and pro the commercial foundations that support it.
If these amendments are successful, we can create a situation where the tech and AI sectors can flourish alongside the creative industries, thereby powering economic growth between them. Because of the vital role the media plays in our democracy, I genuinely believe that this is one of the most crucial debates that we will have in this Parliament. I have this stark warning: without adequate transparency, control and reward, publishers will no longer be able to invest as they have in the creation of the original, high-quality investigative content on which our democracy and the accountability of those in power are based. Without that, our democracy will die in the dark at the hands of Silicon Valley, as we become dependent on the morass of fake news and social media clickbait. I strongly urge all noble Lords to support the amendments.
I am grateful to the noble, Lord Black, for daring to respond to the wonderful speech that opened the debate; I thought I might come in immediately afterwards, but I was terrified by it, so I decided that I would shelter on these Benches and gather my strength before I could begin to respond.
I feel that I have to speak because I am a member of the governing party, which is against these amendments. However, I have signed up to them because I have interests in the media—which I declare; I suppose I should also declare that I have a minor copyright, but that is very small compared with the ones we have already heard about—and because I feel very strongly that we will get ourselves into even more trouble unless action is taken quickly. I have a very clear view of the Government’s proposals, thanks to a meeting with my noble friend the Minister yesterday, where he went through, in detail, some of the issues and revealed some of the thinking behind them; I hope that he will come back to the points he made to me when he comes to respond.
There is no doubt that the use of a copyright work without the consent of the copyright owner in the United Kingdom is an infringement, unless it is “fair dealing” under UK copyright law. However, because of the developments in technology—the crawlers, scrapers and GAI that we have been hearing about—there is a new usage of a huge number of copyright works for the training of algorithms. That has raised questions about whether, and if so how, such usage has to be legislated for as “fair dealing”—if it is to be so—or in some other way, if there is indeed one.
It is right, therefore, for the Government to have required the IPO to carry out a consultation on copyright and AI, which we have been talking about. However, given the alarm and concern evident in the creative sector, we certainly regret the delay in bringing forward this consultation and we are very concerned about its limited scope. Looking at it from a long way away, it seems that this is as much a competition issue as it is a copyright issue. It seems to me and to many others, as we have heard, that the IPO, by including in the consultation document a proposed approach described as an “exception with rights reservation”, has made a very substantial mistake.
This may just be a straw-person device designed to generate more responses, but, if so, it was a bad misjudgement. Does it not make the whole consultation exercise completely wasteful and completely pointless to respond to? When my noble friend the Minister comes to respond, I hope that he, notwithstanding that proposed approach, will confirm that, as far as the Government are concerned, this is a genuine consultation and that all the possible options outlined by the IPO—and any other solutions brought forward during the consultation—will be properly considered on their merits and in the light of the responses to the consultation.
What the creative industries are telling us—they have been united and vehement about this issue, as has already been described, in a way that I have never seen before—is that they must have transparency about what material is being scraped, the right to opt in to the TDMs taking place and a proper licensing system with fair remuneration for the copyright material used. The question of whether the GAI developers should be allowed to use copyright content, with or without the permission of the copyright owner, is a nuanced one, as a decision either way will have very wide-ranging ramifications. However, as we have heard, this issue is already affecting the livelihood of our creative sector—the one that, also as we have heard, we desperately need if we are to support a sustainable creative economy and provide the unbiased information, quality education and British-based entertainment that we all value and want to see flourish.
We understand the need to ensure that the companies that want access to high-quality data and copyright material to train their AI models respect, and will be happy to abide by, any new copyright or competition regulations that may be required. However, the proposals we have heard about today—the ones that would come from the consultation, if we have to delay—will probably be very similar to the amendments before the House, which are modest and fair. We should surely not want to work with companies that will not abide by such simple requirements.
My Lords, I support Amendments 44A and the consequential amendments in this group in the name of my noble friend Lady Kidron, whose speech has, I think, moved the whole Committee across all Benches.
(3 days, 1 hour ago)
Lords ChamberMy Lords, I am pleased to follow the noble Baroness, Lady Morgan, who did so much during the Online Safety Bill—now Act—to champion the issues that are now before us. She should get full credit for the first steps she made. I think I said it before, and I will say it again in her presence, that we thought we had achieved much of what we are talking about today in the final wind-up of that Bill, but we had to swap it for a slightly bigger prize and it fell down slightly on the list, so I feel very guilty about this and want to help to redress somehow the balance of the deficit that was created.
I do not want to get, in this House, any reputation for being a person who asks geeky questions about Third Reading issues, but the Minister will know that getting access to debates at Third Reading is tricky. It often requires the graven head of the clerk to nod very slowly at an appropriate moment, and I wonder if we could just rehearse that slightly so that we are quite clear exactly what the noble Baroness, Lady Morgan, was saying.
Am I right in saying that the intention—and good intentions are great—is that there will be a government amendment at Third Reading? Since it is being produced by the Government, there is not an issue for the clerk to nod at, because that is allowed. If there is a government amendment dealing with all the issues we raised today, then we are all in a good place. It is right that this House, which has done so much to come together to create it, gets the credit for this Bill going down to the Commons. That is appropriate and something that we should get right.
In the absence of the Bill—and I recognise that there are difficulties about drafting, and it may well be that we have a very short time between Report and Third Reading—would it not be appropriate for the Minister to say to the clerk that it is his intention that, if necessary, the noble Baroness, Lady Owen, may bring forward an amendment on these issues so that at least we get, if not all of the package, the parts that are relevant and most important to it in the Bill as it leaves this House? That would be helpful all round, and it would be in accordance with the sentiment of the House.
My Lords, I share in the congratulations of my noble friend Lady Owen. It has taken me about 10 years to begin to understand how this House works and it has taken her about 10 minutes.
I want to pursue something which bewilders me about this set of amendments, which is the amendment tabled by the noble Baroness, Lady Gohir. I do not understand why we are talking about a different Bill in relation to audio fakes. Audio has been with us for many years, yet video deepfakes are relatively new. Why are we talking about a different Bill in relation to audio deepfakes?
My Lords, the opening amendment in this group is a government amendment that we are withdrawing, so we are setting up the debate. There could be a similar mechanism at Third Reading. I do not know how it will actually be worked out, but there is an undertaking on behalf of the Government to say how far we have got on the solicitation issue, with a view to moving amendments in the other place.
Before the Minister sits down, that was exactly the point I was trying to make, and I am very grateful to the noble Lord, Lord Pannick, for raising it again. It does need the Minister to say to the clerk that it is possible for the noble Baroness, Lady Owen, to bring an amendment, if necessary, at Third Reading. If the Minister could repeat that at the Dispatch Box, I think we would both be happy.
Yes. If the noble Baroness wants to bring back a similar amendment on this issue, that indeed can be debated at Third Reading.
My Lords, I speak in support of the noble Baroness, Lady Kidron, on Amendment 58, to which I have also put my name. Given the time, I will speak only about NHS datasets.
There have been three important developments since the Committee stage of this Bill in mid-December: the 43rd annual J P Morgan healthcare conference in San Francisco in mid-January, the launch of the AI Opportunities Action Plan by the Prime Minister on Monday 13 January and the announcement of the Stargate project in the White House the day after President Trump’s inauguration.
Taking these in reverse chronological order, it is not clear exactly how the Stargate project will be funded, but several US big tech companies and SoftBank has pledged tens of billions of dollars. At least $100 billion will be available to build the infrastructure for next-generation AI, and it may even rise to $500 billion in the next four years.
The UK cannot match these sums. The AI Opportunities Action Plan instead lays out how the UK can compete by using its own advantages: a long track record of world-leading AI research in our universities and some unique, hugely valuable datasets.
At the JP Morgan conference in San Francisco, senior NHS management had more than 40 meetings with AI companies. These companies all wanted to know one thing: how and when they could access NHS datasets.
It is not surprising, therefore, that it was reported in November that the national federated data platform would soon be used to train different types of AI models. The two models mentioned were Open AI’s proprietary ChatGPT and Google’s medical AI, Med-Gemini, based on Google’s proprietary large language model, Gemini. Presumably, these models will be fine-tuned using the data stored in the federated data platform.
Amendment 58 is not about restricting access to UK datasets by Open AI, Google or any other US big tech company. Instead, it seeks to maximise their long- term value, driven by strategic goals rather than short-term, opportunistic gains. By classifying valuable public sector datasets as sovereign data assets, we can ensure that the data is made available under controlled conditions, not only to public sector employees and researchers but to industry, including US big tech companies.
We should expect a financial return when industry is given access to a sovereign dataset. A first condition is a business model such that income is generated for the relevant public body, in this case the NHS, from the access fees paid by the companies that will be the authorised licence holders.
A second condition is signposted in the AI Opportunities Action Plan, whose recommendations have all been accepted by the Government. In the third section of the action plan, “Secure our future with homegrown AI”, Matt Clifford, the author of the plan, writes that
“we must be an AI maker, not just an AI taker: we need companies … that will be our UK national champions … Generating national champions will require a more activist approach”.
Part of this activist approach should be to give companies and organisations headquartered in the UK preferential terms of access to our sovereign data assets.
These datasets already exist in the NHS as minimum viable products, so we cannot afford to delay. AI companies are keen to access data in the federated data platform, which is NHS England’s responsibility, or in the secure data environments set up by the National Institute for Health and Care Research, NIHR.
I urge the Government to accept the principles of this amendment as they will provide the framework needed now to support NHS England and NIHR in their negotiations with AI companies.
I have signed Amendment 58. I also support the other amendment spoken to by the noble Baroness, although I did not get around to signing it. They both speak to the same questions, some of which have been touched on by both previous speakers.
My route into this was perhaps a little less analytic. I used to worry about the comment lots of people used to make, wittily, that data was the new oil, without really thinking about what that meant or what it could mean. It began to settle in my mind that, if indeed data is an asset, why is it not carried on people’s balance sheets? Why does data held by companies or even the Government not feature in some sort of valuation? Just like oil held in a company or privately, it will eventually be used in some way. That releases revenue that would otherwise have to be accounted for and there will be an accounting treatment. But as an accountant I have never seen any company’s assets that ever put a value on data. That is where I came from.
A sovereign data approach, which labels assets of value to the economy held by the country rather than a company, seems to be a way of trying to get into language what is more of an accounting approach than perhaps we need to spend time on in this debate. The noble Baroness, Lady Kidron, has gone through the amendment in a way that explains the process, the protection and the idea that it should be valued regularly and able to account for any returns it makes. We have also heard about the way it features in other publications.
I want to take a slightly different part of the AI Opportunities Action Plan, which talks about data and states:
“We should seek to responsibly unlock both public and private data sets to enable innovation by UK startups and researchers and to attract international talent and capital. As part of this, government needs to develop a more sophisticated understanding of the value of the data it holds, how this value can be responsibly realised, and how to ensure the preservation of public trust across all its work to unlock its data assets”.
These are very wise words.
I end by saying that I was very struck by the figures released recently about the number of people who opted out of the NHS’s data collection. I think there are Members present who may well be guilty of such a process. I of course am happy to have my data used in a way that will provide benefit, but I do recognise the risks if it is not properly documented and if people are not aware of what they are giving up or offering in return for the value that will be extracted from it.
I am sure we all want more research and better research. We want research that will yield results. We also want value and to be sure that the data we have given up, which is held on our behalf by various agencies, is properly managed. These amendments seem to provide a way forward and I recommend them.
My Lords, I support Amendments 58 and 71, which address what I consider to be a fundamental oversight in our nation’s stewardship of public data assets.
While these amendments embrace intentionally broad definitions of sovereign data assets and a national data library, their purpose is precise: to recognise, protect and optimise the public value of these critical national resources for generations to come. The amendments’ dual emphasis on robust consent mechanisms and a transparent licensing framework—one that provides preferential access to UK entities—strikes a careful balance between fostering public trust and safeguarding our national interests.
Central to these amendments is the requirement for the Secretary of State to provide comprehensive reporting on both the current value and projected returns from these assets. This addresses a striking accountability gap in our governance framework. While the National Audit Office maintains rigorous oversight of our physical infrastructure, previous Administrations have failed to adequately account for the taxpayers’ substantial investment in public data infrastructure and intangible or knowledge assets.
Consider this striking disparity: Ernst & Young’s 2019 analysis projected that a curated NHS dataset could generate £5 billion annually for the UK, while delivering £4.6 billion in patient benefits through enhanced infrastructure. Yet we lack robust mechanisms to track whether these substantial benefits materialise or are captured and flow back into our healthcare system. This speaks directly to the Tony Blair Institute’s prescient call last year, endorsed by none other than the Minister, the noble Lord, Lord Vallance, for the establishment of an NHS data trust or comparable stewardship vehicle.
As we navigate an AI revolution, we must shift our focus from simply managing risks to proactively harnessing opportunities for social impact and economic growth. This raises two fundamental questions. How can we leverage this technological transformation to maximise public benefit, and how will Parliament effectively scrutinise future trade agreements, particularly with nations like the United States, without established evaluation methodologies or transparent licencing systems of our valuable data assets?
The British public, already bearing a significant tax burden to fund public services, deserves assurance that our valuable digital assets will not be transferred today, only to be transformed into expensive treatments tomorrow, benefiting companies that pay tax overseas. Amendments 58 and 71 provide essential safeguards against the inadvertent undervaluation or transfer of these critical national assets. They ensure proper stewardship of our digital resources for the public good, and I therefore support the intentions behind these amendments.
(1 week, 3 days ago)
Lords ChamberMy Lords, I have also put my name to most of the amendments. As with the noble Baroness, Lady Harding, that some of them do not have my name on them is because I arrived too late. Between her and my noble friend Lady Kidron, they have said everything that needs to be said very powerfully. As one who has more recently become involved in a variety of Bills—the Policing and Crime Bill, the Online Safety Bill, and the Victims and Prisoners Bill—in every case trying to fight for and clarify children’s rights, I can say that it has been an uphill battle. But the reason we have been fighting for this is that we have lamentably failed to protect the interests of children for the past two decades as the world has changed around us. All of us who have children or grandchildren, nephews or nieces, or, like me, take part in the Learn with the Lords programme and go into schools, or who deal with mental health charities, are aware of the failure of government and regulators to take account, as the world changed around us, of the effect it would have on children.
In our attempts to codify and clarify in law what the dangers are and what needs to be put in place to try to prevent them, we have had an uphill struggle, regardless of the colour of government. In principle, everyone agrees. In practice, there is always a reason why it is too difficult—or, the easy way out is to say, “We will tell the regulator what our intent is, but we will leave it up to the regulator to decide”.
Our experience to date of the ability of a regulator entirely to take on board what was very clearly the will of Parliament when the Bill became an Act is not being made flesh when it comes to setting out the regulation. Unless it is in an Act and it is made manifestly clear what the desired outcomes are in terms of safety of children, the regulator—because it is difficult to do this well—will not unreasonably decide that if it is too difficult to do, they will settle for something that is not as good as it could be.
What we are trying to do with this set of amendments is to say to the Government up front, “We want this to be as effective as it possibly could be now”. We do not want to come back and rue the consequences of not being completely clear and of putting clear onus of responsibility on the regulators in two or three years’ time, because in another two or three years children will have important parts of their childhood deteriorating quite rapidly, with consequences that will stay with them for the rest of their lives.
My Lords, I was one of those who was up even earlier than the noble Baroness, Lady Harding, and managed to get my name down on these amendments. It puts me in a rather difficult position to be part of the government party but to seek to change what the Government have arrived at as their sticking position in relation to this issue in particular—and indeed one or two others, but I have learned to live with those.
This one caught my eye in Committee. I felt suddenly, almost exactly as the noble Lord, Lord Russell said, a sense of discontinuity in relation to what we thought it was in the Government’s DNA—that is, to bring forward the right solution to the problems that we have been seeking to change in other Bills. With the then Online Safety Bill, we seemed to have an agreement around the House about what we wanted, but every time we put it back to the officials and people went away with it and came back with other versions, it got worse and not better. How children are dealt with and how important it is to make sure that they are prioritised appears to be one of those problems.
The amendments before us—and I have signed many of them, because I felt that we wanted to have a good and open debate about what we wanted here—do not need to be passed today. It seems to me that the two sides are, again, very close in what we want to achieve. I sensed from the excellent speech of the noble Baroness, Lady Kidron, that she has a very clear idea of what needs to go into this Bill to ensure that, at the very least, we do not diminish the sensible way in which we drafted the 2018 Bill. I was part of that process as well; I remember those debates very well. We got there because we hammered away at it until we found a way of finding the right words that bridged the two sides. We got closer and closer together, but sometimes we had to go even beyond what the clerks would feel comfortable with in terms of government procedure to do that. We may be here again.
When he comes to respond, can the Minister commit to us today in this House that he will bring back at Third Reading a version of what he has put forward—which I think we all would say does not quite go far enough; it needs a bit more, but not that much more—to make it meet with where we currently are and where, guided by the noble Baroness, Lady Kidron, we should be in relation to the changing circumstances in both the external world and indeed in our regulator, which of course is going to go through a huge change as it reformulates itself? We have an opportunity, but there is also a danger that we do not take it. If we weaken ourselves now, we will not be in the right position in a few years’ time. I appeal to my noble friend to think carefully about how he might manage this process for the best benefit of all of us. The House, I am sure, is united about where we want to get to. The Bill does not get us there. Government Amendment 18 is too modest in its approach, but it does not need a lot to get it there. I think there is a way forward that we do not need to divide on. I hope the Minister will take the advice that has been given.
My Lords, we have heard some of the really consistent advocates for children’s online protection today. I must say that I had not realised that the opportunity of signing the amendments of the noble Baroness, Lady Kidron, was rather like getting hold of Taylor Swift tickets—clearly, there was massive competition and rightly so. I pay tribute not only to the speakers today but in particular to the noble Baroness for all her campaigning, particularly with 5Rights, on online child protection.
All these amendments are important for protecting children’s data, because they address concerns about data misuse and the need for heightened protection for children in the digital environment, with enhanced oversight and accountability in the processing of children’s data. I shall not say very much. If the noble Baroness pushes Amendment 20 to a vote, I want to make sure that we have time before the dinner hour to do so, which means going through the next group very quickly. I very much hope that we will get a satisfactory answer from the Minister. The sage advice from the noble Lord, Lord Stevenson, hit the button exactly.
Amendment 20 is particularly important in this context. It seeks to exclude children from the new provisions on purpose limitation for further processing under Article 8A. As the noble Baroness explains, that means that personal data originally collected from a child with consent for a specific purpose could not be reused for a different, incompatible purpose without obtaining fresh consent, even if the child is now an adult. In my view, that is core. I hope the Minister will come back in the way that has been requested by the noble Lord, Lord Stevenson, so we do not have to have a vote. However, we will support the noble Baroness if she wishes to test the opinion of the House.
I am presuming a little here that the Minister’s lack of experience in the procedures of the House is holding him back, but I know he is getting some advice from his left. The key thing is that we will not be able to discuss this again in this House unless he agrees that he will bring forward an amendment. We do not have to specify today what that amendment will be. It might not be satisfactory, and we might have to vote against it anyway. But the key is that he has to say this now, and the clerk has to nod in agreement that he has covered the ground properly.
We have done this before on a number of other Bills, so we know the rules. If the Minister can do that, we can have the conversations he is talking about. We have just heard the noble Baroness, Lady Kidron, explain in a very graceful way that this will be from a blank sheet of paper so that we can build something that will command the consensus of the House. We did it on the Online Safety Bill; we can do it here. Please will he say those words?
I am advised that I should say that I am happy for the amendment to be brought forward, but not as a government amendment. We are happy to hear an amendment from the noble Baroness at Third Reading.
Let us be quite clear about this. It does not have to be a government amendment, but the Government Minister has to agree that it can be brought forward.
I thank the Minister for that very generous offer. I also thank the noble Lord, Lord Stevenson, for his incredible support. I note that, coming from the Government Benches, that is a very difficult thing to do, and I really appreciate it. On the basis that we are to have an amendment at Third Reading, whether written by me with government and opposition help or by the Government, that will address these fundamental concerns set out by noble Lords, I will not press this amendment today.
These are not small matters. The implementation of the age-appropriate design code depends on some of the things being resolved in the Bill. There is no equality of arms here. A child, whether five or 15, is no match for the billions of dollars spent hijacking their attention, their self-esteem and their body. We have to, in these moments as a House, choose David over Goliath. I thank the Minister and all the supporters in this House —the “Lords tech team”, as we have been called in the press. With that, I beg leave to withdraw the amendment.
(1 week, 3 days ago)
Lords ChamberMy Lords, I do not think the noble Baroness, Lady Harding, lost the audience at all; she made an excellent case. Before speaking in support of the noble Baroness, I should say, “Blink, and you lose a whole group of amendments”. We seem to have completely lost sight of the group starting with Amendment 19—I know the noble Lord, Lord Holmes, is not here—and including Amendments 23, 74 and government Amendment 76, which seems to have been overlooked. I suggest that we degroup next week and come back to Amendments 74 and 76. I do not know what will happen to Amendment 23; I am sure there is a cunning plan on the Opposition Front Bench to reinstate that in some shape or form. I just thought I would gently point that out, since we are speeding along and forgetting some of the very valuable amendments that have been tabled.
I very much support, as I did in Committee, what the noble Baroness, Lady Harding, said about Amendment 24, which aims to clarify the use of open electoral register data for direct marketing. The core issue is the interpretation of Article 14 of the GDPR, specifically regarding the disproportionate effort exemption. The current interpretation, influenced by recent tribunal rulings, suggests that companies using open electoral register—OER—data would need to notify every individual whose data is used, even if they have not opted out. As the noble Baroness, Lady Harding, implied, notifying millions of individuals who have not opted out is unnecessary and burdensome. Citizens are generally aware of the OER system, and those who do not opt out reasonably expect to receive direct marketing materials. The current interpretation leads to excessive, unhelpful notifications.
There are issues about financial viability. Requiring individual notifications for the entire OER would be financially prohibitive for companies, potentially leading them to cease using the register altogether. On respect for citizens’ choice, around 37% of voters choose not to opt out of OER use for direct marketing, indicating their consent to such use. The amendment upholds this choice by exempting companies from notifying those individuals, which aligns with the GDPR’s principle of respecting data subject consent.
On clarity and certainty, Amendment 24 provides clear exemptions for OER data use, offering legal certainty for companies while maintaining data privacy and adequacy. This addresses the concerns about those very important tribunal rulings creating ambiguity and potentially disrupting legitimate data use. In essence, Amendment 24 seeks to reconcile the use of OER data for direct marketing with the principles of transparency and data subject rights. On that basis, we on these Benches support it.
I turn to my amendment, which seeks a soft opt-in for charities. As we discussed in Committee, a soft opt-in in Regulation 22 of the Privacy and Electronic Communications (EC Directive) Regulations 2003 allows organisations to send electronic mail marketing to existing customers without their consent, provided that the communication is for similar products and services and the messages include an “unsubscribe” link. The soft opt-in currently does not apply to non-commercial organisations such as charities and membership organisations. The Data & Marketing Association estimates that extending the soft opt-in to charities would
“increase … annual donations in the UK by £290 million”.
Extending the soft opt-in as proposed in both the Minister’s and my amendment would provide charities with a level playing field, as businesses have enjoyed this benefit since the introduction of the Privacy and Electronic Communications Regulations. Charities across the UK support this change. For example, the CEO of Mind stated:
“Mind’s ability to reach people who care about mental health is vital. We cannot deliver life changing mental health services without the financial support we receive from the public”.
Oxfam’s individual engagement director noted:
“It’s now time to finally level the playing field for charities too and to allow them to similarly engage their passionate and committed audiences”.
Topically, too, this amendment is crucial to help charities overcome the financial challenges they face due to the cost of living crisis and the recent increase in employer national insurance contributions. So I am delighted, as I know many other charities will be, that the Government have proposed Amendment 49, which achieves the same effect as my Amendment 50.
My Lords, I declare an interest that my younger daughter works for a charity which will rely heavily on the amendments that have just been discussed by the noble Lord, Lord Clement-Jones.
I want to explain that my support for the amendment moved by the noble Baroness, Lady Harding, was not inspired by any quid pro quo for earlier support elsewhere —certainly not. Looking through the information she had provided, and thinking about the issue and what she said in her speech today, it seemed there was an obvious injustice happening. It seemed wrong, in a period when we were trying to support growth, that we cannot see our way through it. It was in that spirit that I suggested we should push on with it and bring it back on Report, and I am very happy to support it.
I do not want to try the patience of the House at this late hour. I am unhappy about Clause 77 as a whole. Had I had the opportunity, we could have debated it in Committee; unfortunately, I was double-booked, so was unable. Now we are on Report, which does not really provide a platform for discussing the exclusion of the clause.
However, the noble Baroness has provided an opportunity for me to make the point that combining data is the weak point, the point at which we lose control. For that reason, I am unhappy about this amendment. We need to keep high levels of vigilance with regard to the ability to take data from one area and apply it in another, because that is when personal privacy disappears.