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Year ahead with the Online Safety Act

by Mark Rowe

With the UK Online Safety Act (OSA) now a seemingly familiar part of the UK legislative landscape, it’s a good time to consider some common pitfalls and less obvious aspects, as well as what may be coming next, writes Elle Todd, Partner, at the law firm Reed Smith.

The first key mistake made with the OSA is not realising how crucial it is to spend time considering the correct classification of services. It is very rarely the case that the OSA applies to a whole service and not carefully thinking through which features and parts are actually in scope can be dangerous. Not only does this result in unnecessary governance and obligations, but with the new fees regime for services having kicked in this summer, services could find themselves literally paying for the error.

Fees are charged by [regulator] Ofcom based on revenue generated from “relevant parts” of the service (subject to certain thresholds—currently fees are payable where there is UK revenue of over £10m and global revenue of £250m). Overreach in determining which parts of a service are in scope will directly impact qualifying revenue and therefore fees. We have urged numerous services to revisit their status over the past year.

Second, the OSA is far from the UK’s version of the EU Digital Services Act (DSA), as many often assume, although both address risks around user-generated content and search services. While many services will be caught by both regimes, unfortunately they don’t map neatly against each other. Again, this requires careful feature-by-feature analysis to determine which obligations apply. A few key differences to be alert to:

1. The DSA applies to companies that merely store or host user content, and while the obligations aren’t as onerous as those for online platforms where such content is surfaced to others, there are still plenty to comply with. All too often, we see companies that are not aware of this aspect.
2. The DSA obligations apply to intermediary services, and the legislation uses this exact same definition to set out the “safe harbour” defences relied on by services as protection against liability for carrying unlawful third-party content. Another cautionary tale: if you want to fall outside the obligations, be aware that this could also signal that the defences do not apply either and a benefit is therefore lost.
3. The OSA is much heavier in terms of governance and assessment obligations, similar to GDPR. The DSA only requires assessments for very large services, while the OSA requires sometimes three different assessments for one service and without a de minimis threshold.
4. The DSA focuses on content that is unlawful – a very broad term, particularly when considering different Member State laws. In contrast, the OSA is based on a defined list of illegal harms from specific statutes and, for children, an additional list of specific harmful content.

Age assurance

A third pitfall is that the obligations on age assurance are frequently misunderstood. Despite the noise about age gates, the OSA’s current mandatory provisions are quite limited. The focus is on pornography services (where there has been a real focus on enforcement from Ofcom, given these restrictions kicked in first) and on services that fail to prohibit specific content being generated or uploaded by users, such as pornography, or suicide and self-harm content – for example in their terms.

So, what are we likely to see? Undoubtedly, interest in age assurance will continue to grow. The new proposals for amendments to introduce bans for users under sixteen on livestreaming, social media, and certain chat services will take shape. This presents various challenges. One which is often overlooked is that the shift from over-18 verification (which we all thought would be the primary focus and around which many age assurance tools have been designed) to identifying younger age brackets, such as the proposed 16-year threshold, is a far from easy task.

Current technologies sometimes struggle with accuracy at these finer age distinctions, creating real implementation headaches but requiring ID documentation presents other risks including discrimination and collection of sensitive information. It’s not just the UK, EU-wide digital age of majority proposals and growing international variation in age thresholds will force new solutions and decisions here.

Compliance gaps

We will see a focus on services that currently fall into an OSA compliance “gap.” This includes app stores, where Ofcom’s report this autumn will no doubt prove interesting reading, as many apps hope that more responsibility will shift to these so-called gatekeepers. We will also likely see AI chat services (currently largely out of scope where they only have one-to-one interactions between the service and user) come more into focus.

Inevitably litigation will also start testing the boundaries of Ofcom’s powers and the proportionality of specific enforcement actions. The courts may have the final word on how far the regulator can go.

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