Source · Select Committees · Treasury Committee
Recommendation 19
19
Paragraph: 101
We recognise that placing a responsibility on online companies to reimburse consumers who are victims...
Conclusion
We recognise that placing a responsibility on online companies to reimburse consumers who are victims of online fraud could rapidly transform their approach to fraud. Any move to force online firms to compensate victims of fraud should not be to the detriment of the outcomes for consumers already achieved through the compensation banks and other financial institutions pay. The consumer should see no loss of speed or amount in repayment.
Paragraph Reference:
101
Government Response
Not Addressed
HM Government
Not Addressed
We note the recommendation that the Government consider whether online companies should be required to contribute compensation when fraud takes place using their platforms. Relatedly, we understand that the Joint Committee on the Online Safety Bill has recommended both: • The creation of an Online Safety Ombudsman to provide recourse to redress where failure to comply with the provisions of the Bill lead to significant, demonstrable harm; and • Creating a private right of action for redress for individuals (noting the challenges with individuals using it in practice). We would be happy to discuss any ideas for redress models which the Government or other regulators would like to develop.