Online Safety Act 2023 (Commencement No 4) Regulations 2024 made
The Online Safety Act 2023 (Commencement No 4) Regulations 2024 (SI 2024/1333) have been made. These Regulations are the fourth commencement regulations under the Online Safety Act 2023. They bring into force on 17 January 2025 the duties about regulated provider pornographic content in section 81 and other provisions, such as Ofcom’s enforcement and information powers and the offence of failing to comply with a confirmation decision, as they relate to section 81.
CMA publishes final digital markets competition regime guidance
The CMA has published its final digital markets competition regime guidance. It provides advice and general information to businesses, their advisers and other stakeholders on the approach used by the CMA in operating the digital markets competition regime, set out in the Digital Markets, Competition and Consumers Act 2024. The guidance received approval from the Secretary of State for Business and Trade on 17 December 2024 and takes effect from 1 January 2025. The CMA has also published relevant guidance for the reporting of a merger by firms designated by the CMA as having Strategic Market Status (SMS) under the Act.
Advertising Standards Authority publishes update on online supply pathway of age-restricted ads
The ASA has published a report providing a unique insight into the online supply pathway of ads for alcohol, gambling and other age-restricted ads. The ASA’s five-year strategy commits to protecting children and other vulnerable audiences and bringing greater transparency and broader accountability to its online advertising regulation. The ASA’s report presents the perspectives of advertisers, publishers and ad supply intermediaries on the relatively few cases, identified by automated monitoring, of age-restricted ads mistargeted to websites and YouTube channels disproportionately popular with children. The report highlights what can be done to reduce children’s exposure to age-restricted ads online (such as those for alcohol or gambling). The study also describes compliance processes in place, and steps taken, to target age-restricted ads away from children in line with CAP Guidance on Age-restricted Ads Online. Whilst breaches of the advertising codes are few in number, the ASA says that it remains important to examine the circumstances that lead to the ads being mistargeted to sites disproportionately popular with children. For example, the report provides specific case study evidence around mis-categorisation of age-restricted ads, which if categorised correctly are likely to have prevented the ad from being served and inadequacies relating to the blocklisting of publications disproportionately popular with children.
Ofcom consults on technology notices
Ofcom is consulting on two parts of the framework that underpin Ofcom’s Online Safety Technology Notice powers: its proposals for what the minimum standards of accuracy for accredited technologies could be, to inform its advice to the UK government; and its draft guidance about how it proposes to use this power. Under the Online Safety Act, Ofcom has powers to tackle terrorism and child sexual exploitation and abuse (CSEA) content. It can, where it decides that it is necessary and proportionate, make a provider use a specific technology to tackle terrorism and/or child sexual exploitation and abuse (CSEA) content, or develop technology to tackle CSEA content. Ofcom would do this by issuing a Technology Notice under section 121 of the Act. Any technology that Ofcom requires a provider to use will need to be accredited either by Ofcom, or someone Ofcom appoints, against minimum standards of accuracy set by the UK government, after advice from Ofcom. The consultation ends on 10 March 2025.
PSA publishes final annual report
The Phone-paid Services Authority (PSA) has published its final annual report before it transfers regulatory responsibility for regulating phone paid services to Ofcom in 2025, after which it will cease operations. The organisation highlighted its agile approach to regulation, including the introduction of Code 15, which shifted focus from enforcement to prevention. The PSA also says that it has reduced consumer detriment by over 85% when regulating Information, Connection and Sign-posting Services.
FCA issues discussion paper on cryptoassets
The FCA has published a discussion paper on the future market abuse regime for cryptoassets and cryptoasset admissions and disclosures regime. In 2023, the UK government announced plans to legislate for a future financial services regime for cryptoassets. This would bring certain cryptoasset activities into the FCA’s regulatory perimeter. The Treasury published its initial consultation and call for evidence in February 2023, followed by its response in October. In November 2024, the Labour government confirmed it will proceed with legislation to bring cryptoassets into the FCA’s regulatory perimeter. Under the government’s plans, the FCA’s regulatory remit for cryptoassets will expand from the current Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and Financial Promotions regime to a more comprehensive conduct regime. This will cover cryptoasset trading, regulation of stablecoins, intermediation, custody and other core activities. The FCA has issued the discussion paper help inform the development of a balanced regime that addresses market risks without stifling growth. It seeks views by 14 March 2025.
Revised EU Product Liability Directive enters into force
The revised Product Liability Directive ((EU) 2024/2853) applies to new products placed on the EU market from 9 December 2026. It updates the product liability framework for victims seeking compensation for damage, such as personal injury, property damage and damage to data, caused by defective products. It also aims to provide greater legal certainty for economic operators. It applies to all products. This includes household items as well as AI, software and product-related digital services, and to products sold online. Under the revised Product Liability Directive, the European Commission will also develop a publicly accessible EU database of court judgments on product liability cases. This aims to give more information about how the rules apply.
