None Portrait The Chair
- Hansard -

With this it will be convenient to discuss the following:

Clause 119 stand part.

Government amendments 154 to 157.

Clauses 120 and 121 stand part.

Alex Davies-Jones Portrait Alex Davies-Jones (Pontypridd) (Lab)
- Hansard - -

Bore da, Ms Rees. It is, as ever, a pleasure to serve under your chairship. I rise to speak to clauses 118 to 121 and Government amendments 154 to 157.

As we all know, clause 118 is important and allows Ofcom to impose a financial penalty on a person who fails to complete steps that have been required by Ofcom in a confirmation decision. This is absolutely vital if we are to guarantee that regulated platforms take seriously their responsibilities in keeping us all safe online. We support the use of fines. They are key to overall behavioural change, particularly in the context of personal liability. We welcome clause 118, which outlines the steps Ofcom can take in what we hope will become a powerful deterrent.

Labour also welcomes clause 119. It is vital that Ofcom has these important powers to impose a financial penalty on a person who fails to comply with a notice that requires technology to be implemented to identify and deal with content relating to terrorism and child sexual exploitation and abuse on their service. These are priority harms and the more that can be done to protect us on these two points the better.

Government amendments 155 and 157 ensure that Ofcom has the power to impose a monetary penalty on a provider of a service who fails to pay a fee that it is required to pay under new schedule 2. We see these amendments as crucial in giving Ofcom the important powers it needs to be an effective regulator, which is something we all require. We have some specific observations around new schedule 2, but I will save those until we consider that schedule. For now, we support these amendments and I look forward to outlining our thoughts shortly.

We support clause 120, which allows Ofcom to give a penalty notice to a provider of a regulated service who does not pay the fee due to Ofcom in full. This a vital provision that also ensures that Ofcom’s process to impose a penalty can progress only when it has given due notice to the provider and once the provider has had fair opportunity to make fair representations to Ofcom. This is a fair approach and is central to the Bill, which is why we have not sought to amend.

Finally, we support clause 121, which ensures that Ofcom must state the reasons why it is imposing a penalty, the amount of the penalty and any aggravating or mitigating factors. Ofcom must also state when the penalty must be paid. It is imperative that when issuing a notice Ofcom is incentivised to publish information about the amount, aggravating or mitigating factors and when the penalty must be paid. We support this important clause and have not sought to amend.

Chris Philp Portrait The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Chris Philp)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship once again, Ms Rees, and I congratulate Committee members on evading this morning’s strike action.

I am delighted that the shadow Minister supports the intent behind these clauses, and I will not speak at great length given the unanimity on this topic. As she said, clause 118 allows Ofcom to impose a financial penalty for failure to take specified steps by a deadline set by Ofcom. The maximum penalty that can be imposed is the greater of £18 million or 10% of qualifying worldwide revenue. In the case of large companies, it is likely to be a much larger amount than £18 million.

Clause 119 enables Ofcom to impose financial penalties if the recipient of a section 103 notice does not comply by the deadline. It is very important to ensure that section 103 has proper teeth. Government amendments 154 to 157 make changes that allow Ofcom to recover not only the cost of running the service once the Bill comes into force and into the future but also the preparatory cost of setting up for the Bill to come into force.

As previously discussed, £88 million of funding is being provided to Ofcom in this financial year and next. We believe that something like £20 million of costs that predate these financial years have been funded as well. That adds up to around £108 million. However, the amount that Ofcom recovers will be the actual cost incurred. The figure I provided is simply an indicative estimate. The actual figure would be based on the real costs, which Ofcom would be able to recoup under these measures. That means that the taxpayer—our constituents —will not bear any of the costs, including the set-up and preparatory cost. This is an equitable and fair change to the Bill.

Clause 120 sets out that some regulated providers will be required to pay a regulatory fee to Ofcom, as set out in clause 71. Clause 120 allows Ofcom to impose a financial penalty if a regulated provider does not pay its fee by the deadline it sets. Finally, clause 121 sets out the information that needs to be included in these penalty notices issued by Ofcom.

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None Portrait The Chair
- Hansard -

With this it will be convenient to discuss:

Government amendment 158.

That schedule 12 be the Twelfth schedule to the Bill.

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

Labour supports clause 122 and schedule 12, which set out in detail the financial penalties that Ofcom may impose, including the maximum penalty that can be imposed. Labour has long supported financial penalties for those failing to comply with the duties in the Bill. We firmly believe that tough action is needed on online safety, but we feel the sanctions should go further and that there should be criminal liability for offences beyond just information-related failures. We welcome clause 122 and schedule 12. It is vital that Ofcom is also required to produce guidelines around how it will determine penalty amounts. Consistency across the board is vital, so we feel this is a positive step forward and have not sought to amend the clause.

Paragraph 8 of schedule 12 requires monetary penalties to be paid into the consolidated fund. There is no change to that requirement, but it now appears in new clause 43, together with the requirement to pay fees charged under new schedule 2 into the consolidated fund. We therefore support the amendments.

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

I have nothing further to add on these amendments. The shadow Minister has covered them, so I will not detain the Committee further.

Question put and agreed to.

Clause 122 accordingly ordered to stand part of the Bill.

Schedule 12

Penalties imposed by OFCOM under Chapter 6 of Part 7

Amendment made: 158, in schedule 12, page 206, line 43, leave out paragraph 8.—(Chris Philp.)

Paragraph 8 of Schedule 12 requires monetary penalties to be paid into the Consolidated Fund. There is no change to that requirement, but it now appears in NC43 together with the requirement to pay fees charged under NS2 into the Consolidated Fund.

Schedule 12, as amended, agreed to.

Clause 123

Service restriction orders

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

I beg to move amendment 50, in clause 123, page 106, line 36, at end insert—

“(9A) OFCOM may apply to the court for service restriction orders against multiple regulated services with one application, through the use of a schedule of relevant services which includes all the information required by subsection (5).”

This amendment would give Ofcom the ability to take action against a schedule of non-compliant sites, while still preserving the right of those sites to oppose the application for, and/or appeal through the courts against any, orders to block access or support services.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss amendment 51, in clause 125, page 110, line 20, at end insert—

“(7A) OFCOM may apply to the court for service restriction orders against multiple regulated services with one application, through the use of a schedule of relevant services which includes all the information required by subsection (6).”

This amendment would give Ofcom the ability to take action against a schedule of non-compliant sites, while still preserving the right of those sites to oppose the application for, and/or appeal through the courts against any, orders to block access or support services.

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

With your permission, Ms Rees, I will speak to clause stand part and clauses 124 to 127 at the same time. Labour supports clause 123, which outlines the powers that Ofcom will have when applying to the court for business disruption measures. Business disruption measures are court orders that require third parties to withdraw services or block access to non-compliant regulated services. It is right that Ofcom has these tools at its disposal, particularly if it is going to be able to regulate effectively against the most serious instances of user harm. However, the Bill will be an ineffective regime if Ofcom is forced to apply for separate court orders when trying to protect people across the board from the same harms. We have already waited too long for change. Labour is committed to giving Ofcom the powers to take action, where necessary, as quickly as possible. That is why we have tabled amendments 50 and 51, which we feel will go some way in tackling these issues.

Amendment 50 would give Ofcom the ability to take action against a schedule of non-compliant sites, while still preserving the right of those sites to oppose the application for—and/or appeal through the courts against any—orders to block access or support services. The Bill currently requires Ofcom to seek a separate court order for each service against which it wishes to take enforcement action in the form of blocking access or services. That is the only effective mechanism for overseas websites. UK-based services will be subject to enforcement notices and financial penalties that can be enforced without having to go to court. That creates a disadvantage for UK sites, which can be more easily enforced against.

Given that there are 4 million to 5 million pornographic websites, for example, the requirement for separate court orders will prevent Ofcom from taking action at scale and creating a level playing field for all adult sites. Under the Bill, Ofcom must take action against each offending website or social media company individually. While we acknowledge that the Government have stated that enforcement action can be taken against multiple offending content providers, in our opinion that is not made clear in the Bill.

Moreover, we are concerned that some pornography websites would seek to avoid the Bill’s requirements by changing their domain name—domain hopping. That was threatened last year when Germany moved to issue a blocking order against major providers of internet pornography. That is why Ofcom must be granted clear enforcement powers to take swift action against multiple websites and content providers in one court action or order.

This group of amendments would also provide clarity and ease of enforcement for internet service providers, which will be expected to enforce court orders. Labour wants the Bill to be genuinely effective, and amendments 50 and 51 could ensure that Ofcom has the tools available to it to take action at pace. We urge the Minister to accept these small concessions, which could have a hugely positive impact.

Amendment 51 would give Ofcom the ability to take action against a schedule of non-compliant sites, while preserving the right of those sites to oppose an application for an order to block access or support services, or to appeal through the courts against any such order.

It will come as no surprise that Labour supports clause 124, which sets out the circumstances in which Ofcom may apply to the courts for an interim service restriction order. We particularly support the need for Ofcom to be able to take action when time is not on its side, or where, put plainly, the level of harm being caused means that it would be inappropriate to wait for a definite failure before taking action.

However, we hope that caution is exercised if Ofcom ever needs to consider such an interim order; we must, of course, get the balance right in our approach to internet regulation more widely. I would therefore be grateful if the Minister could outline his understanding of the specifics of when these orders may be applied. More broadly, Labour agrees that Ofcom should be given the power to act when time demands it, so we have not sought to amend clause 124 at this stage.

Labour also supports the need for Ofcom to have the power to apply to the courts for an access restriction order, as outlined in clause 125. It is vital that Ofcom is given the power to prevent, restrict or deter individuals in the UK from accessing a service from a non-compliant provider. We welcome the specific provisions on access via internet service providers and app stores. We all know from Frances Haugen’s testimony that harmful material can often be easily buried, so it is right and proper that those are considered as “access facilities” under the clause. Ultimately, we support the intentions of clause 125 and, again, have not sought to amend it at this stage.

We also support clause 126, which sets out the circumstances in which Ofcom may apply to the courts for an interim access restriction order. I will not repeat myself: for the reasons I have already outlined, it is key that Ofcom has sufficient powers to act, particularly on occasions when it is inappropriate to wait for a failure to be established.

We welcome clause 127, which clarifies how Ofcom’s enforcement powers can interact. We particularly welcome clarification that, where Ofcom exercises its power to apply to the courts for a business disruption order under clauses 123 to 126, it is not precluded from taking action under its other enforcement powers. As we have repeatedly reiterated, we welcome Ofcom’s having sufficient power to reasonably bring about positive change and increase safety measures online. That is why we have not sought to amend clause 127.

Kirsty Blackman Portrait Kirsty Blackman
- Hansard - - - Excerpts

Thank you for chairing this morning’s sitting, Ms Rees.

I agree with the hon. Member for Pontypridd that these clauses are necessary and important, but I also agree that the amendments are important. It seems like this is a kind of tidying-up exercise, to give Ofcom the ability to act in a way that will make its operation smoother. We all want this legislation to work. This is not an attempt to break this legislation—to be fair, none of our amendments have been—but an attempt to make things work better.

Amendments 50 and 51 are fairly similar to the one that the National Society for the Prevention of Cruelty to Children proposed to clause 103. They would ensure that Ofcom could take action against a group of sites, particularly if they were facing the same kind of issues, they had the same kind of functionality, or the same kind of concerns were being raised about them.

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Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

Let me start with amendments 50 and 51, which were introduced by the shadow Minister and supported by the SNP spokesperson. The Government recognise the valid intent behind the amendments, namely to make sure that applications can be streamlined and done quickly, and that Ofcom can make bulk applications if large numbers of service providers violate the new duties to the extent that interim service restriction orders or access restriction orders become necessary.

We want a streamlined process, and we want Ofcom to deal efficiently with it, including, if necessary, by making bulk applications to the court. Thankfully, however, procedures under the existing civil procedure rules already allow so-called multi-party claims to be made. Those claims permit any number of claimants, any number of defendants or respondents and any number of claims to be covered in a single form. The overriding objective of the CPR is that cases are dealt with justly and proportionately. Under the existing civil procedure rules, Ofcom can already make bulk applications to deal with very large numbers of non-compliant websites and service providers in one go. We completely agree with the intent behind the amendments, but their content is already covered by the CPR.

It is worth saying that the business disruption measures—the access restriction orders and the service restriction orders—are intended to be a last resort. They effectively amount to unplugging the websites from the internet so that people in the United Kingdom cannot access them and so that supporting services, such as payment services, do not support them. The measures are quite drastic, although necessary and important, because we do not want companies and social media firms ignoring our legislation. It is important that we have strong measures, but they are last resorts. We would expect Ofcom to use them only when it has taken reasonable steps to enforce compliance using other means.

If a provider outside the UK ignores letters and fines, these measures are the only option available. As the shadow Minister, the hon. Member for Pontypridd, mentioned, some pornography providers probably have no intention of even attempting to comply with our regulations; they are probably not based in the UK, they are never going to pay the fine and they are probably incorporated in some obscure, offshore jurisdiction. Ofcom will need to use these powers in such circumstances, possibly on a bulk scale—I am interested in her comment that that is what the German authorities had to do—but the powers already exist in the CPR.

It is also worth saying that in its application to the courts, Ofcom must set out the information required in clauses 123(5) and 125(3), so evidence that backs up the claim can be submitted, but that does not stop Ofcom doing this on a bulk basis and hitting multiple different companies in one go. Because the matter is already covered in the CPR, I ask the shadow Minister to withdraw the amendment.

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

I am interested to know whether the Minister has anything to add about the other clauses. I am happy to give way to him.

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

I thank the shadow Minister for giving way. I do not have too much to say on the other clauses, because she has introduced them, but in my enthusiasm for explaining the civil procedure rules I neglected to respond to her question about the interim orders in clauses 124 and 126.

The hon. Lady asked what criteria have to be met for these interim orders to be made. The conditions for clause 124 are set out in subsections (3) and (4) of that clause, which states, first, that it has to be

“likely that the…service is failing to comply with an enforceable requirement”—

so it is likely that there has been a breach—and, secondly, that

“the level of risk of harm to individuals in the United Kingdom…and the nature and severity of that harm, are such that it would not be appropriate to wait to establish the failure before applying for the order.”

Similar language in clause 124(4) applies to breaches of section 103.

Essentially, if it is likely that there has been a breach, and if the resulting harm is urgent and severe—for example, if children are at risk—we would expect these interim orders to be used as emergency measures to prevent very severe harm. I hope that answers the shadow Minister’s question. She is very kind, as is the Chair, to allow such a long intervention.

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Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

I welcome the Minister’s comments about clauses 124 and 126 in answer to my questions, and also his comments about amendments 50 and 51, clarifying the CPR. If the legislation is truly to have any impact, it must fundamentally give clarity to service users, providers and regulators. That is why we seek to remove any ambiguity and to put these important measures in the Bill, and it is why I will press amendment 50 to a Division.

Question put, That the amendment be made.

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Question proposed, That the clause stand part of the Bill.
Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

The Minister and his Back Benchers will, I am sure, be tired of our calls for more transparency, but I will be kind to him and confirm that Labour welcomes the provisions in clause 128.

We believe that it is vital that, once Ofcom has followed the process outlined in clause 110 when issuing a confirmation decision outlining its final decision, that is made public. We particularly welcome provisions to ensure that when a confirmation decision is issued, Ofcom will be obliged to publish the identity of the person to whom the decision was sent, details of the failure to which the decision relates, and details relating to Ofcom’s response.

Indeed, the transparency goes further, as Ofcom will be obliged to publish details of when a penalty notice has been issued in many more areas: when a person fails to comply with a confirmation decision; when a person fails to comply with a notice to deal with terrorism content or child sexual exploitation and abuse content, or both; and when there has been a failure to pay a fee in full. That is welcome indeed. Labour just wishes that the Minister had committed to the same level of transparency on the duties in the Bill to keep us safe in the first place. That said, transparency on enforcement is a positive step forward, so we have not sought to amend the clause at this stage.

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

I am grateful for the shadow Minister’s support. I have nothing substantive to add, other than to point to the transparency reporting obligation in clause 64, which we have debated.

Question put and agreed to.

Clause 128 accordingly ordered to stand part of the Bill.

Clause 129

OFCOM’s guidance about enforcement action

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Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

The hon. Member asks for my assistance in interpreting legislative language. Generally speaking, “consult” means what it suggests. Ofcom will consult the Secretary of State, as it will consult the ICO, to ascertain the Secretary of State’s opinion, but Ofcom is not bound by that opinion. Unlike the power in a previous clause—I believe it was clause 40—where the Secretary of State could issue a direct instruction to Ofcom on certain matters, here we are talking simply about consulting. When the Secretary of State expresses an opinion in response to the consultation, it is just that—an opinion. I would not expect it to be binding on Ofcom, but I would expect Ofcom to pay proper attention to the views of important stakeholders, which in this case include both the Secretary of State and the ICO. I hope that gives the hon. Member the clarification he was seeking.

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

As we know, clause 129 requires Ofcom to publish guidance about how it will use its enforcement powers. It is right that regulated providers and other stakeholders have a full understanding of how, and in what circumstances, Ofcom will have the legislative power to exercise this suite of enforcement powers. We also welcome Government amendment 7, which will ensure that the Information Commissioner—a key and, importantly, independent authority—is included in the consultation before guidance is produced.

As we have just heard, however, the clause sets out that Secretary of State must be consulted before Ofcom produces guidance, including revised or replacement guidance, about how it will use its enforcement powers. We feel that that involves the Secretary of State far too closely in the enforcement of the regime. The Government should be several steps away from being involved, and the clause seriously undermines Ofcom’s independence—the importance of which we have been keen to stress as the Bill progresses, and on which Conservative Back Benchers have shared our view—so we cannot support the clause.

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

I repeat the point I made to the hon. Member for Liverpool, Walton a moment ago. This is simply an obligation to consult. The clause gives the Secretary of State an opportunity to offer an opinion, but it is just that—an opinion. It is not binding on Ofcom, which may take that opinion into account or not at its discretion. This provision sits alongside the requirement to consult the Information Commissioner’s Office. I respectfully disagree with the suggestion that it represents unwarranted and inappropriate interference in the operation of a regulator. Consultation between organs of state is appropriate and sensible, but in this case it does not fetter Ofcom’s ability to act at its own discretion. I respectfully do not agree with the shadow Minister’s analysis.

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Advisory committee on disinformation and misinformation
Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

I beg to move amendment 57, in clause 130, page 115, line 4, leave out “18” and insert “6”

This amendment changes the period by which the advisory committee must report from 18 months to 6.

None Portrait The Chair
- Hansard -

With this, it will be convenient to discuss the following: amendment 58, in clause 130, page 115, line 5, at end insert—

‘(6) Following the publication of the report, OFCOM must produce a code of practice setting out the steps services should take to reduce disinformation across their systems.”

This amendment requires Ofcom to produce a code of practice on system-level disinformation.

Clause stand part.

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Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

Clause 130 sets up a committee to advise Ofcom on misinformation and disinformation, which is the only direct reference to misinformation and disinformation in the entire Online Safety Bill. However, the Bill gives the committee no identifiable powers or active role in tackling harmful misinformation and disinformation, meaning that it has limited practical purpose. It is also unclear how the advisory committee will fit with Ofcom’s wider regulatory functions.

The remaining provisions in the Bill are limited and do not properly address harmful misinformation and disinformation. If tackling harmful misinformation and disinformation is left to this clause, the Bill will fail both to tackle harm properly, and to keep children and adults safe.

The clause risks giving a misleading impression that action is being taken. If the Government and Ofcom proceed with creating the committee, we need to see that its remit is strengthened and clarified, so that it more effectively tackles harmful disinformation and misinformation. That should include advising on Ofcom’s research, reporting on drivers of harmful misinformation and disinformation, and proportionate responses to them. There should also be a duty on Ofcom to consult the committee when drafting relevant codes of practice.

That is why we have tabled amendment 57. It would change the period by which the advisory committee must report from 18 months to six. This is a simple amendment that encourages scrutiny. Once again, the Minister surely has little reason not to accept it, especially as we have discussed at length the importance of the advisory committee having the tools that it needs to succeed.

Increasing the regularity of these reports from the advisory committee is vital, particularly given the ever-changing nature of the internet. Labour has already raised concerns about the lack of futureproofing in the Bill more widely, and we feel that the advisory committee has an important role and function to play in areas where the Bill itself is lacking. We are not alone in this view; the Minister has heard from his Back Benchers about just how important this committee is.

Amendment 58 would require Ofcom to produce a code of practice on system-level disinformation. Again, this amendment will come as no surprise to the Minister, given the concerns that Labour has repeatedly raised about the lack of provisions relating to disinformation in the Bill. It seems like an obvious omission that the Bill has failed to consider a specific code of practice around reducing disinformation, and the amendment would be a simple way to ensure that Ofcom actively encourages services to reduce disinformation across their platforms. The Minister knows that this would be a welcome step, and I urge him to consider supporting the amendment.

Kirsty Blackman Portrait Kirsty Blackman
- Hansard - - - Excerpts

I want to briefly agree with the sentiments of the Opposition Front Bench, especially about the strength of the committee and the lack of teeth that it currently has. Given that the Government have been clear that they are very concerned about misinformation and disinformation, it seems odd that they are covered in the Bill in such a wishy-washy way.

The reduction of the time from 18 months to six months would also make sense. We would expect the initial report the committee publish in six months to not be as full as the ones it would publish after that. I do not see any issue with it being required to produce a report as soon as possible to assess how the Act is bedding in and beginning to work, rather than having to wait to assess—potentially once the Act is properly working. We want to be able to pick up any teething problems that the Act might have.

We want the committee to be able to say, “Actually, this is not working quite as we expected. We suggest that Ofcom operates in a slightly different way or that the interaction with providers happens in a slightly different way.” I would rather that problems with the Act were tackled as early as possible. We will not know about problems with the Act, because there is no proper review mechanism. There is no agreement on the committee, for example, to look at how the Act is operating. This is one of the few parts of the Bill where we have got an agreement to a review, and it would make sense that it happen as early as possible.

We agree that misinformation and disinformation are very important matters that really need to be tackled, but there is just not enough clout in the Bill to allow Ofcom to properly tackle these issues that are causing untold harm.

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Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

The clause allows Ofcom to confer functions on the content board in relation to content-related functions under the Bill, but does not require it to do so. We take the view that how Ofcom manages its responsibilities internally is a matter for Ofcom. That may change over time. The clause simply provides that Ofcom may, if Ofcom wishes, ask its content board to consider online safety matters alongside its existing responsibilities. I trust that the Committee considers that a reasonable measure.

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

Labour welcomes the clause, which, as the Minister has said, sets out some important clarifications with respect to the Communications Act 2003. We welcome the clarification that the content board will have delegated and advisory responsibilities, and look forward to the Minister’s confirmation of exactly what those are and how this will work in practice. It is important that the content board and the advisory committee on disinformation and misinformation are compelled to communicate, too, so we look forward to an update from the Minister on what provisions in the Bill will ensure that that happens.

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

The shadow Minister has asked how this will work in practice, but as I said, the internal operation of Ofcom obviously is a matter for Ofcom. As Members have said in the recent past—indeed, in the last hour—they do not welcome undue Government interference in the operation of Ofcom, so it is right that we leave this as a matter for Ofcom. We are providing Ofcom with the power, but we are not compelling it to use that power. We are respecting Ofcom’s operational independence—a point that shadow Ministers and Opposition Members have made very recently.

Question put and agreed to.

Clause 131 accordingly ordered to stand part of the Bill.

Clause 132

Research about users’ experiences of regulated services

Question proposed, That the clause stand part of the Bill.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss clause 133 stand part.

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

We support clause 132, which ensures that Ofcom is required to understand and measure public opinion concerning providers of regulated services, as well as the experiences and interests of those using the regulated services in question. The Bill in its entirety is very much a learning curve for us all, and I am sure we all agree that, as previously maintained, the world really is watching as we seek to develop and implement the legislation. That is why it is vital that Ofcom is compelled to conduct and arrange its own research to ensure that we are getting an accurate picture of how our regulatory framework is affecting people. I stress to the Minister that it is imperative that Ofcom consults all service providers—big and small—which the CBI stressed to me in recent meetings.

We also welcome the provisions outlined in subsection (2) that confirm that Ofcom must include a statement of its research in its annual report to the Secretary of State and the devolved Administrations. It is important that Ofcom, as a regulator, takes a research-led approach, and Labour is pleased to see these provisions included in the Bill.

We welcome the inclusion of clause 133, which extends the communication panel’s remit to include online safety. This will mean that the panel is able to give advice on matters relating to different types of online content under the Bill, and on the impacts of online content on UK users of regulated services. It is a welcome step forward, so we have not sought to amend the clause.

Maria Miller Portrait Dame Maria Miller (Basingstoke) (Con)
- Hansard - - - Excerpts

I want to make one short comment about clauses 132 and 133, which are really important. There is no intention to interfere with or fetter the way that Ofcom operates, but there is an obligation on this Committee, and on Parliament, to indicate what we would expect to see from Ofcom by way of the clauses, because they are an essential part of the transparency that we are trying to inject into the sector.

Research about users’ experiences is hugely important, and such reports contain important insights into how platforms are used, and the levels of misinformation and disinformation that people are exposed to. Ofcom already produces highly authoritative reports on various aspects of the online world, including the fact that three in four adults do not think about whether the online information that they see is truthful. Indeed, one in three adults believes that all or most information that they find online is truthful. We know that there is a significant gap between consumers perception and reality, so it is important to ensure that research has good exposure among those using the internet.

We do not often hear about the problems of how the online world works, and the level of disinformation and inaccuracy is not well known, so will the Minister elaborate on how he expects Ofcom to ensure that people are aware of the reality of the online world? Platforms will presumably be required to have regard to the content of Ofcom reports, but will Ofcom be required to publicise its reports? It is not clear that such a duty is in the Bill at the moment, so does the Minister expect Ofcom to have a role in educating people, especially children, about the problem of inaccurate data or other aspects of the online world?

We know that a number of platforms spend a great deal of money on going into schools and talking about their products, which may or may not entail accurate information. Does Ofcom not have an important role to play in this area? Educating users about the changes in the Bill would be another potential role for Ofcom in order to recalibrate users’ expectations as to what they might reasonably expect platforms to offer as a result of the legislation. It is important that we have robust regulatory frameworks in place, and this Bill clearly does that. However, it also requires users to be aware of the changes that have been made so that they can report the problems they experience in a timely manner.

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Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

I welcome the support of the hon. Member for Pontypridd for these clauses. I will turn to the questions raised by my right hon. Friend the Member for Basingstoke. First, she asked whether Ofcom has to publish these reports so that the public, media and Parliament can see what they say. I am pleased to confirm that Ofcom does have to publish the reports; section 15 of the Communications Act 2003 imposes a duty on Ofcom to publish reports of this kind.

Secondly, my right hon. Friend asked about educating the public on issues pertinent to these reports, which is what we would call a media literacy duty. Again, I confirm that, under the Communications Act, Ofcom has a statutory duty to promote media literacy, which would include matters that flow from these reports. In fact, Ofcom published an expanded and updated set of policies in that area at the end of last year, which is why the old clause 103 in the original version of this Bill was removed—Ofcom had already gone further than that clause required.

Thirdly, my right hon. Friend asked about the changes that might happen in response to the findings of these reports. Of course, it is open to Ofcom—indeed, I think this Committee would expect it—to update its codes of practice, which it can do from time to time, in response to the findings of these reports. That is a good example of why it is important for those codes of practice to be written by Ofcom, rather than being set out in primary legislation. It means that when some new fact or circumstance arises or some new bit of research, such as the information required in this clause, comes out, those codes of practice can be changed. I hope that addresses the questions my right hon. Friend asked.

The hon. Member for Liverpool, Walton asked about transparency, referring to Frances Haugen’s testimony to the US Senate and her disclosures to The Wall Street Journal, as well as the evidence she gave this House, both to the Joint Committee and to this Committee just before the Whitsun recess. I have also met her bilaterally to discuss these issues. The hon. Gentleman is quite right to point out that these social media firms use Facebook as an example, although there are others that are also extremely secretive about what they say in public, to the media and even to representative bodies such as the United States Congress. That is why, as he says, it is extremely important that they are compelled to be a lot more transparent.

The Bill contains a large number of provisions compelling or requiring social media firms to make disclosures to Ofcom as the regulator. However, it is important to have public disclosure as well. It is possible that the hon. Member for Liverpool, Walton was not in his place when we came to the clause in question, but if he turns to clause 64 on page 56, he will see that it includes a requirement for Ofcom to give every provider of a relevant service a notice compelling them to publish a transparency report. I hope he will see that the transparency obligation that he quite rightly refers to—it is necessary—is set out in clause 64(1). I hope that answers the points that Committee members have raised.

Question put and agreed to.

Clause 132 accordingly ordered to stand part of the Bill.

Clause 133 ordered to stand part of the Bill.

Clause 134

OFCOM’s statement about freedom of expression and privacy

Question proposed, That the clause stand part of the Bill.

Alex Davies-Jones Portrait Alex Davies-Jones
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As we all know, the clause requires Ofcom to publish annual reports on the steps it has taken, when carrying out online safety functions, to uphold users’ rights under articles 8 and 10 of the convention, as required by section 6 of the Human Rights Act 1998. It will come as no surprise to the Minister that Labour entirely supports this clause.

Upholding users’ rights is a central part of this Bill, and it is a topic we have debated repeatedly in our proceedings. I know that the Minister faces challenges of his own, as the Opposition do, regarding the complicated balance between freedom of speech and safety online. It is only right and proper, therefore, for Ofcom to have a specific duty to publish reports about what steps it is taking to ensure that the online space is fair and equal for all.

That being said, we know that we can and should go further. My hon. Friend the Member for Batley and Spen will shortly address an important new clause tabled in her name—I believe it is new clause 25—so I will do my best not to repeat her comments, but it is important to say that Ofcom must be compelled to publish reports on how its overall regulatory operating function is working. Although Labour welcomes clause 134 and especially its commitment to upholding users’ rights, we believe that when many feel excluded in the existing online space, Ofcom can do more in its annual reporting. For now, however, we support clause 134.

Chris Philp Portrait Chris Philp
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I welcome the shadow Minister’s continuing support for these clauses. Clause 134 sets out the requirement on Ofcom to publish reports setting out how it has complied with articles 8 and 10 of the European convention on human rights.

I will pause for a second, because my hon. Friend the Member for Don Valley and others have raised concerns about the implications of the Bill for freedom of speech. In response to a question he asked last week, I set out in some detail the reasons why I think the Bill improves the position for free speech online compared with the very unsatisfactory status quo. This clause further strengthens that case, because it requires this report and reminds us that Ofcom must discharge its duties in a manner compatible with articles 8 and 10 of the ECHR.

From memory, article 8 enshrines the right to a family life, and article 10 enshrines the right to free speech, backed up by quite an extensive body of case law. The clause reminds us that the powers that the Bill confers on Ofcom must be exercised—indeed, can only be exercised—in conformity with the article 10 duties on free speech. I hope that that gives my hon. Friend additional assurance about the strength of free speech protection inherent in the Bill. I apologise for speaking at a little length on a short clause, but I think that was an important point to make.

Question put and agreed to.

Clause 134 accordingly ordered to stand part of the Bill.

Clause 135

OFCOM’s transparency reports

Question proposed, That the clause stand part of the Bill.

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

Again, Labour welcomes clause 135, which places a duty on Ofcom to produce its own reports based on information from the transparency reports that providers are required to publish. However, the Minister will know that Labour feels the Bill has much more work to do on transparency more widely, as we have repeatedly outlined through our debates. The Minister rejected our calls for increased transparency when we were addressing, I believe, clause 61. We are not alone in feeling that transparency reports should go further. The sector and his own Back Benchers are calling for it, yet so far his Department has failed to act.

It is a welcome step that Ofcom must produce its own reports based on information from the provider’s transparency reports, but the ultimate motivation for the reports to provide a truly accurate depiction of the situation online is for them to be made public. I know the Minister has concerns around security, but of course no one wants to see users put at harm unnecessarily. That is not what we are asking for here. I will refrain from repeating debates we have already had at length, but I wish to again put on the record our concerns around the transparency reporting process as it stands.

That being said, we support clause 135. It is right that Ofcom is compelled to produce its own reports; we just wish they were made public. With the transparency reports coming from the providers, we only wish they would go further.

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

I have spoken to these points previously, so I do not want to tax the Committee’s patience by repeating what I have said.

Question put and agreed to.

Clause 135 accordingly ordered to stand part of the Bill.

Clause 136

OFCOM’s report about researchers’ access to information

Question proposed, That the clause stand part of the Bill.

Alex Davies-Jones Portrait Alex Davies-Jones
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Again, Labour welcomes clause 136, which is a positive step towards a transparent approach to online safety, given that it requires Ofcom to publish a report about the access that independent researchers have, or could have, to matters relating to the online safety of regulated services. As my hon. Friend the Member for Worsley and Eccles South rightly outlined in an earlier sitting, Labour strongly believes that the transparency measures in the Bill do not go far enough.

Independent researchers already play a vital role in regulating online safety. Indeed, there are far too many to list, but many have supported me, and I am sure the Minister, in our research on the Bill. That is why we have tabled a number of amendments on this point, as we sincerely feel there is more work to be done. I know the Minister says he understands and is taking on board our comments, but thus far we have seen little movement on transparency.

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

In this clause we are specifically talking about access to information for researchers. Obviously, the transparency matters were covered in clauses 64 and 135. There is consensus across both parties that access to information for bona fide academic researchers is important. The clause lays out a path to take us in the direction of providing that access by requiring Ofcom to produce a report. We debated the matter earlier. The hon. Member for Worsley and Eccles South—I hope I got the pronunciation right this time—

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

The hon. Lady made some points about the matter in an earlier sitting, as the shadow Minister just said. It is an area we are giving some careful thought to, because it is important that it is properly academically researched. Although Ofcom is being well resourced, as we have discussed, with lots of money and the ability to levy fees, we understand that it does not have a monopoly on wisdom—as good a regulator as it is. It may well be that a number of academics could add a great deal to the debate by looking at some of the material held inside social media firms. The Government recognise the importance of the matter, and some thought is being given to these questions, but at least we can agree that clause 136 as drafted sets out a path that leads us in this important direction.

Question put and agreed to.

Clause 136 accordingly ordered to stand part of the Bill.

Clause 137

OFCOM’s reports

Alex Davies-Jones Portrait Alex Davies-Jones
- Hansard - -

Briefly, before I hand over to my hon. Friend the Member for Worsley and Eccles South, I should say that Labour welcomes clause 137, which gives Ofcom a discretionary power to publish reports about certain online safety measures and matters. Clearly, it is important to give Ofcom the power to redact or exclude confidential matters where needs be, and I hope that there will be a certain level of common sense and public awareness, should information of this nature be excluded. As I have previously mentioned—I sound a bit like a broken record—Labour echoes the calls for more transparency, which my hon. Friend the Member for Batley and Spen will come on to in her new clause. However, broadly, we support this important clause.

I would like to press the Minister briefly on how exactly the exclusion of material from Ofcom reports will work in practice. Can he outline any specific contexts or examples, beyond commercial sensitivity and perhaps matters of national security, where he can envision this power being used?