I am grateful to my noble friends for their amendments in this group, and for the useful debate that we have had. I am grateful also to my noble friend Lady Morgan of Cotes and the members of her committee who have looked at fraud, and for the work of the Joint Committee which scrutinised the Bill, in earlier form, for its recommendations on strengthening the way it tackles fraud online. As the noble Lord, Lord Clement-Jones, said, following those recommendations, the Government have brought in new measures to strengthen the Bill’s provisions to tackle fraudulent activity on in-scope services. I am glad he was somewhat satisfied by that.
All in-scope services will be required to take proactive action to tackle fraud facilitated through user-generated content. In addition, the largest and most popular platforms have a stand-alone duty to prevent fraudulent paid-for advertising appearing on their services. This represents a major step forward in ensuring that internet users are protected from scams, which have serious financial and psychological impacts, as noble Lords noted in our debate. Fully addressing the challenges of paid-for advertising is a wider task than is possible through the Bill alone. Advertising involves a broad range of actors not covered by the current legislative framework, such as advertising intermediaries. I am sympathetic to these concerns and the Government are taking action in this area. Through the online advertising programme, we will deliver a holistic review of the regulatory framework in relation to online advertising. The Government consulted on this work last year and aim to publish a response erelong. As the noble Lord, Lord Stevenson, and others noted, there are a number of Bills which look at this work. Earlier this week, there was a meeting hosted by my noble friends Lord Camrose, Lord Sharpe of Epsom and Lady Penn to try to avoid the cracks opening up between the Bills. I am grateful to my noble friend Lady Morgan for attending; I hope it was a useful discussion.
I turn to the amendments tabled by my noble friend. The existing duties on user reporting and user complaints have been designed for user-generated content and search content and are not easily applicable to
paid-for advertising. The duties on reporting and complaints mechanisms require platforms to take action in relation to individual complaints, but many in-scope services do not have control over the paid-for advertising on their services. These amendments are therefore difficult to operate for many in-scope services and would create a substantial burden for small businesses. I assure her and other noble Lords that the larger services, which have strong levers over paid-for advertising, will have to ensure that they have processes in place to enable users to report fraudulent advertising.
In reference to transparency reporting, let me assure my noble friend and others that Ofcom can already require information about how companies comply with their fraudulent advertising duties through transparency reports. In addition, Ofcom will also have the power to gather any information it requires for the purpose of exercising its online safety functions. These powers are extensive and will allow Ofcom to assess compliance with the fraudulent advertising duties.
The noble Viscount, Lord Colville of Culross, asked about the difficulty of identifying fraudulent advertising. Clauses 170 and 171 give guidance and a duty on Ofcom about providers making a judgment about content, including fraudulent advertising. There will also be a code of practice on fraudulent advertising to provide further guidance on mechanisms to deal with this important issue.
My noble friend Lord Lucas’s Amendments 94 and 95 aim to require services to report information relating to fraudulent advertising to UK authorities. I am confident that the Bill’s duties will reduce the prevalence of online fraud, reducing the need for post hoc reporting in this way. If fraud does appear online, there are adequate systems in place for internet users to report this to the police.
People can report a scam to Action Fraud, the national reporting service for fraud and cybercrime. Reports submitted to Action Fraud are considered by the National Fraud Intelligence Bureau and can assist a police investigation. Additionally, the Advertising Standards Authority has a reporting service for reporting online scam adverts, and those reports are automatically shared with the National Cyber Security Centre.
The online advertising programme, which I mentioned earlier, builds on the Bill’s fraudulent advertising duty and looks at the wider online advertising system. That programme is considering measures to increase accountability and transparency across the supply chain, including proposals for all parties to enhance record keeping and information sharing.
My noble friend Lord Lucas was keen to meet to speak further. I will pass that request to my noble friend Lord Sharpe of Epsom, who I think would be the better person to talk to in relation to this on behalf of the Home Office—but I am sure that one of us will be very happy to talk with him.
I look forward to discussing this issue in more detail with my noble friend Lady Morgan and others between now and Report, but I hope that this provides sufficient reassurance on the work that the Government are doing in this Bill and in other ways. I invite my noble friends not to press their amendments.