Ofcom has launched details about how the law will stop criminal and harmful activity online for technology companies to enforce from 17 March 2025.
The new laws from the regulator mean social media companies, websites and apps need to “establish a reporting channel for organisations with fraud expertise” so they can flag scams in real time.
There will also be more “trusted flaggers” to allow more firms to raise awareness of ongoing scams.
As well as support for businesses, there are new powers for the regulator to fine companies in breach of the new rules, which also have protections for women and girls, as well as codes to prevent terrorist accounts and platforms that assist or encourage suicide.
In March 2025, firms will need to have a senior person who is accountable to the relevant governing body to be responsible for the “illegal content, reporting and complaints duties”.
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The level of fines to punish firms that fall short of the expectations will rise to £18m or 10% of their worldwide revenue, whichever is greater. In the most extreme cases, Ofcom can apply for a court order to block a website or app.
Other elements for social media firms and websites to adhere to include:
- Removing illegal content quickly or preventing it from appearing in the first place
- Ensuring the risks and dangers posed to children on the largest social media platforms are more transparent
- Preventing children from accessing harmful and age-inappropriate content
- Enforcing age limits and age-checking measures
- Providing parents and children with clear and accessible ways to report problems online
Melanie Dawes, Ofcom’s chief executive, said: “For too long, sites and apps have been unregulated, unaccountable and unwilling to prioritise people’s safety over profits. That changes from today.
“The safety spotlight is now firmly on tech firms and it’s time for them to act. We’ll be watching the industry closely to ensure firms match up to the strict safety standards set for them under our first codes and guidance, with further requirements to follow swiftly in the first half of next year.
“Those that come up short can expect Ofcom to use the full extent of our enforcement powers against them.”
In 2023, households in the UK lost £60m to fraudsters using Facebook Marketplace, with a third (34%) of all listings on the site leading to scammers selling items online.
Despite the intentions of the new online law – which was signed off in September 2023 – Which? has slammed the finer details of it.
‘Gaps for fraudsters to exploit’
The consumer champion noted: “Which? is concerned that Ofcom’s codes of practice are far too weak, leaving gaps for fraudsters to exploit and too many circumstances where tech companies will be able to ignore clear signs of fraud.
“We also think it’s unacceptable that under the current timeline, it will be years before specific protections against fraudulent advertisements take effect.”
If added: “To tackle the UK’s fraud epidemic, it’s crucial that Ofcom and the Government strengthen these codes and the wider Online Safety Act and accelerate the timetable for getting them implemented so consumers are finally better protected from online scams.”
