How the UK’s Online Safety Bill will protect online customers from fraud

Privacy and safety are two of the most important factors in digital CX. With the increasing amount of customer data companies are able to collect, consumers want to know that their personal information is secure and that they are not being taken advantage of when they interact with businesses online.

Data security and use is such a concern for customers that, according to a 2021 study, as many as 22 percent use guest checkouts when online shopping to avoid sharing data.

The UK recently passed the Online Safety Bill, legislation that requires tech platforms to scan for harmful content and take action against the actors behind it. It contains provisions for fraudulent advertising and scammers, with serious penalties for companies that fail to prevent harmful content being published on their platforms.

Speaking at CX Network's recent All Access: Digital CX event, Dame Caroline Dinenage DBE, the former UK Minister for Digital, Culture, Media and Sport who led work on the bill, explained why the bill was created and how it will protect consumers.

What is the Online Safety Bill?

The primary purpose of the Online Safety Bill is to prevent children from being exposed to harmful and age-inappropriate content, as well as preventing the non-consensual sharing of intimate images or deepfakes. However, the legislation also applies to cases of paid-for fraudulent advertising and end-to-end encrypted messengers in a bid to root out fraudsters targeting users with scams.

It requires tech companies to check for harmful content and block the users posting it, with failure to do so leaving them liable for fines of up to £18 million or 10 percent of their annual turnover, whichever is highest.

The bill was several years in the making before finally passing at the end of October. Dinenage has called it a “groundbreaking, world-leading piece of legislation” that marks “just the beginning” of a raft of laws that will protect consumers from online scams.

Why has this legislation been created?

Dinenage explained the reasons for creating the bill: “We know that rapid advancements in consumer functionality and the popularity and use of generative AI have raised some quite important and urgent discussions about the evolution of artificial intelligence, and the potential impact of technology on things like our social values, our culture, our media practices, even our democratic processes.

“I believe that technology can and should play a really important role in shaping the UK's response to some of the biggest challenges we face,” she added. “I think when used to its full and benevolent potential, the technological advancements that we've seen in the last decade can literally transform communities that can generate untold economic opportunities, and problem-solve at a pace that we've just never seen before.

“However, despite the boundless opportunity presented by this we have found ourselves in a situation where our regulators have not been able to evolve at the same pace. And as the general public increases their use of tech, it's really important that we ensure that they do it in a totally safe, legal and harm-free environment.”

Watch Dame Caroline Dinenage MP discuss the Online Safety Bill as part of All Access: Digital CX 2023

Dinenage also explained that the bill aims to provide users with the tools to moderate what content they see online. “It's not a role for government or indeed for the regulator to determine every aspect of what a citizen can see online but by giving them their own agency and giving people the power to curate their own online experiences,” she said.

“It's a balance between privacy protection and prevention. What it does show is a clear intent and clear message that companies who don't step up, who don't give users the agency they deserve over what they see and what they avoid, will be answerable to the regulator through penalties or through business disruption measures. Some of these potential business disruption measures are really quite punitive.” These include fining repeat offenders and even shutting down some of the most dangerous websites entirely.

What does the Online Safety Bill mean for businesses and customers?

Dinenage explained that the bill is a call for tech companies to work with the government and with regulators to ensure they deliver safer online experiences for everybody. “We know that the search engines and the social media platforms already have the ability to reduce the risks online if they wanted to. And we have seen some great examples of that globally, particularly during the pandemic where they were able to come together and bring some really good solutions to some of the issues like harmful disinformation.

“But while the bottom line remains the priority, the harms that are caused will never be tackled in full. That’s why in the UK we have to bring through this system which gives Ofcom, our regulator, the power to ensure that these companies are held to account where necessary.”

The Online Safety Bill sets a precedent, which “will drive consumer confidence in the tech that we're going to use every day,” Dinenage added.

The Digital Markets, Competition and Consumers Bill is currently being debated in Parliament, and it proposes giving consumers protections in respect of unfair commercial practices, as well as updating powers to investigate and enforce consumer protection law. The Data Protection and Digital Information Bill is also making its way through Parliament, and will help to regulate how people's personal data is collected and used.

“It starts with making online spaces safer, but the legislation we're currently shaping on data protection and competition in digital markets will drive standards on things like e-commerce, and going after scammers and rogue traders who give some of our online businesses a bad name,” Dinenage said. “It's all about unlocking the potential of technology to continue to make our lives better.”

Read more: 

• Getting the most out of customer data
• How to get started with the UK's new Consumer Duty

Unleash unrivalled loyalty: dive into the Global State of CX

Harness emotional connections, navigate shifting expectations, and align your brand values for success. Be inspired by top brands such as Amazon Games, Nike, Roche, John Holland Group, Humm Group, Wayfair and Talkdesk, explore pivotal roles of social causes and sustainability.

Learn More