Ofcom's incoming chair, Ian Cheshire, has pledged to aggressively regulate major tech companies, signaling a significant shift in the watchdog's approach. This comes as Ofcom is stepping up its efforts to enforce online safety changes, particularly regarding the protection of children. The regulator has accused platforms like TikTok and YouTube of not adequately safeguarding young users and plans to mandate independent audits of the systems used by YouTube, TikTok, and Meta (owners of Instagram and Facebook) to protect children from harmful content. This announcement coincides with a government consultation on online child safety, which includes considering an Australia-style ban on social media access for under-16s, a measure supported by MPs from the Commons education committee.
In addition to child safety, Ofcom is also tackling scam advertising, which costs the UK an estimated $200 million annually. The regulator has published a draft fraudulent advertising code under the UK's Online Safety Act, proposing that social media platforms and search engines will be legally required to implement robust measures against scam ads. The proposals outline 40 specific actions for major platforms, including banning scammers and preventing them from creating new accounts, intercepting imposters, and establishing dedicated channels for reporting scam ads. Ofcom is advocating for a "one strike and you're out" policy for scammers, a departure from some platforms' current practice of issuing multiple warnings.
Under these new rules, tech firms could face substantial penalties for non-compliance, with fines reaching up to $18 million or 10% of their global revenue, whichever amount is greater. The consultation period for these proposals runs until October 2, with final decisions expected in 2027 after parliamentary approval. Companies such as Meta's Facebook and Instagram, TikTok, Alphabet's YouTube, Pinterest, and Reddit are among those targeted by these tougher measures. While consumer advocates like Which? welcome the proposals as a crucial step towards holding tech firms accountable, they express concern that the timeline for implementation, potentially extending until 2027, leaves consumers vulnerable, especially with the rapid advancements in AI making scams increasingly sophisticated.
The new regulations specifically address paid-for advertisements, which fraudsters exploit to promote fraudulent products or services on platforms. Oliver Griffiths, Ofcom's online safety group director, emphasized that for too long, victims have been exposed to online scam ads due to tech giants' insufficient efforts to combat fraudsters. The regulator expects companies to take immediate and robust action to eliminate scam ads and remove bad actors, warning that platforms failing to meet their legal duties will face serious consequences once the rules are in effect. Ofcom, as the UK's media regulator, is expanding its responsibilities to encompass taming powerful tech corporations, a task described as an "existential question" for liberal democracies.
