Draft Online Safety Bill Report — House of Commons, 2022-01-13
Topic: Domestic Commerce
Kevin Paul Hollinrake (Conservative, Centre-right): It is a pleasure to be called in this important debate, Madam Deputy Speaker. I wish to talk about online fraud; in my capacity as chair of the all-party group on fair business banking and as a member of the Treasury Committee, I think that is a matter of extreme importance. I congratulate the Joint Committee on its work, and my hon. Friend the Member for Folkestone and Hythe (Damian Collins), its Chairman, has done excellent work on this, particularly in pages 58 to 60 and 75 to 79 of the report It is good to see that the Government are looking at online fraud within the context of this Bill, but they must look at paid-for content as well. It is crucial that we do that, and the Minister has been very good in engaging on this issue. He knows how important it is, given his background. When the FCA, the Treasury, UK Finance, the Advertising Standards Authority and the Treasury Committee are all in favour of including fraud and paid-for content within the scope of this Bill, it is incumbent on the Government to do so. Otherwise, as the Treasury Committee says, there will be large financial losses to the public. Up to 40% of all crime is now fraud and, as the report says, 85% of fraud involves the internet in some way or other, so it is crucial that we cover this in the Bill I am massively in favour of competition and absolutely congratulate the platforms on their market dominance, but they have taken that market share in paid-for content away from our local newspapers and other such media. It is therefore crucial that we put those platforms on a fair and level playing field with those other media. I do not think we do that, and we need to be far tougher with these platforms. Clearly, they make a huge amount of money, but in many ways they get away with murder in terms of the regulation of their content, in a way that newspapers never would have done In my days in business, when we were advertising in newspapers we had to prove that we were who we said we were in terms of being a business, and the newspapers would look at the content of our adverts and they made sure we verified our claims. Neither of those things happens with respect to these platforms; they simply take the money and the approach is, "Let the people who are viewing it beware." It is simply not a fair and level playing field. Newspapers were the gatekeepers but these platforms are absolutely not As my hon. Friend the Member for Boston and Skegness (Matt Warman) said, what works offline should be covered online, but that is not the situation at the moment. So I agree with the report that we need the platforms to be proactive in making sure that fraudulent content is removed. It needs to be covered under clause 41(4) and "priority illegal content", so that platforms have to be proactive in taking this stuff down. We also need to be looking at clause 39 and removing paid-for ads to make sure that platforms are also proactive in removing paid-for online fraudulent content. There is another thing we need to make sure is covered in the Bill in its final form. Fraud is not just an offence against individuals, as companies often get defrauded by mechanisms through these platforms, and we want to make sure they are covered as well. One way of doing that and focusing the platforms’ attention on this—I am not quite clear on this and I probably need to spend a bit of time with the Minister and the Chair of the Joint Committee on it—is by looking at what redress is available to people who do lose out. I know that the Committee is recommending an external redress process to cover this, but would that cover redress for financial loss? It think it should. So if the individual or the company cannot get redress through the company that they were defrauded by—it is pretty unlikely that they would—or the bank that facilitated the transaction, the platform should cover the redress to compensate those people for the loss. That would really focus the attention of platforms on making sure that this content was removed I am not sure that people know that the ASA, which looks at this kind of stuff and makes sure that advertising is appropriate, has no means of sanctioning a company for making claims that are not valid and do not meet with the expectations of the consumers. There are pretty much no sanctions for defrauding a company or individual in this way, or even for misleading them into buying the wrong product or making the wrong investment, as we saw with London Capital and Finance This Bill is a huge opportunity, and we have to make sure it is all-encompassing and ticks many of the boxes that others have spoken about in this debate.