Lord Clement-Jones (LD)

My Lords, as the noble Lord, Lord Blencathra, has so concisely described—he gets more concise as the evening goes on—this group deals with the sanctions applied under the online weapon advertising regime. We very much welcome the Government’s commitment to ensuring accountability for businesses and sellers who facilitate the online sale of knives. However, if the penalties imposed are too small, they merely become a tolerable cost of doing business for large, wealthy online service providers. As the noble Lord explained, the Bill proposes maximum civil penalties for service providers of up to £60,000 for failing to comply with content manager requirements or for failing to comply with a content removal notice. His Amendments 55C and 55D directly challenge that maximum limit by proposing that the penalty for a service provider’s non-compliance should instead be a minimum of 500% of the value of the illegal goods advertised. In our view, that proposal shifts the focus decisively towards financial deterrence—although I hate to agree with the noble Lord twice in one evening. The argument embedded within these amendments is sound: fines should reflect the scale and profitability of the illegal advertising business they enable. By linking the minimum fine directly to five times the value of the illegal goods advertised, we ensure that the penalty scales proportionally with the volume of the illicit trade facilitated by the platform, making it financially unsustainable to turn a blind eye to illegal weapon content. The noble Lord’s Amendment 55E applies this same principle to the penalties imposed on the service provider’s content manager. Clause 23 currently sets the maximum penalty for the content manager at £10,000. Amendment 55E seeks to replace that cap with a minimum penalty of 100% of the value of the illegal goods advertised. That would ensure that the individual responsible for overseeing compliance within the organisation also faces a penalty that reflects the seriousness of the content they failed to manage or remove, particularly where that content is tied directly to the advertisement of unlawful weapons. These amendments force us to consider how we can make our laws genuinely tough on organised online crime. In our view, legislation must be proportionate; and proportionality, in the face of corporate digital crime, means that penalties should meaningfully exceed the profits derived from facilitating criminal activity. The amendments rightly push us to consider the financial consequences that would truly deter platforms from risking public safety for private gain.