Chapter 3

Chapter 3

Regulatory Options

3.1 Having determined that some form of regulation of on-line services is necessary to seek to introduce a situation of technological neutrality in the maintenance of community standards, whereby otherwise refused or restricted material should not be accessible by other media, the Committee discusses the issues below.

Definitional issues

On-line services

3.2 The Government's July 1995 Consultation Paper proposed the following definition of 'an on-line information service':

3.3 Some witnesses argued that there are deficiencies in this proposed definition, especially in relation to communications between users, rather than 'between the user and the system'.

3.4 The Committee was informed that many Internet services encompass real time interactive communication between different users, using audio, video or text (Monash University, p. s219). While the definition was thought to be appropriate to on-line services such as BBS and the Internet, it was not seen as broad enough to cover a number of interactive broadband services (Evidence, p. s333).

3.5 News Limited was concerned both with the breadth of the proposed definition, by including directed e-mail which it argued should be no more restricted than private mail, yet too narrow in referring to stored information, thereby excluding real time chat sessions (Evidence, pp. s208-9).

3.6 On Australia argued that the proposed definition:

3.7 In its Censorship Bill 1995 Western Australia uses the expression "computer service" which it defines as:

3.8 The Committee could not comment whether this definition is preferable to the government's proposal without taking advice on the matter. The important issue from the Committee's perspective is that any definition entrenched in law should be sufficiently encompassing of future interactive services based on broadband capabilities as well as the current generation of services obtainable through narrowband.

Objectionable and restricted material

3.9 In the offence provisions outlined in the government's consultation paper, 'objectionable material' would be prohibited from transmission, while 'restricted material' is not to be made available to certain persons under 18 years.

3.10 The consultation paper defines 'objectionable material' in terms corresponding to the refused classification categories contained in the Classification (Publications, Films and Computer Games) Act 1995 and 'restricted material' as material that is unsuitable for a minor to see, read or play, or depicts, expresses or otherwise deals with sex, violence or coarse language in such a manner as to be unsuitable for seeing, reading or playing by persons under 15.

3.11 Again, the Western Australian bill contains differing definitions. While its definition of 'objectionable' is based on the concepts of the Refused Classification category, but in substantially differing terms to the consultation paper's 'model' provisions, in relation to restricted material it refers only to minors, a person under 18 years, without reference to age 15 years. Thus, Western Australia appears to have regarded the MA category as an unrealistic threshold for on-line operators to achieve.

3.12 The Committee received a submission from the Religious Alliance Against Pornography which questioned how R- and X- rated content can be made available to adult subscribers on public on-line services without children accessing these images. RAAP called for the definition of 'objectionable' to be similar to the provisions presently applying to free-to-air television (Evidence, p. s47), which would eliminate all material equivalent to R and X but permit MA-classified material.

3.13 The Committee has previously given consideration to this issue in relation to both 0055/0051 audiotex services and pay TV services and has taken a similar view. In relation to the proposed "adults only" 0051 closed user access service, the Committee had recommended that R and X rated material not be permitted, effectively limiting the 0051 service to M-rated material (there being no MA category in place at the time). Similarly, the Committee has recommended that neither R nor X rated material should be permitted to be broadcast on pay TV. These recommendations recognised that all material which is now classified MA would previously have been included in the M classification. In both cases, access to the services was intended to be restricted to adults only, but the Committee received evidence that any controls could easily be evaded by minors.

3.14 As is discussed in detail below, the Committee notes that realistic controls are currently absent on children's access to 'adult' on-line material, with reliance essentially placed on parental and teacher supervision. The Committee also notes that it is important for it to be stated now what is the proper standard for on-line services, which will apply equally to current and to new services as they are developed. The Committee believes that Australia must consistently apply its community standards to new technologies, especially in circumstances where it is otherwise impractical to protect its children from harmful material, and is recommending accordingly. The Committee notes that any restriction on Australian-sourced material would not impact on the flood of overseas-sourced material, except at the receiver end, but does not accept that problem as either insoluble nor reason for a stand not to be taken.

Recommendation 1: That it should be an offence to use a computer service to transmit, obtain possession of, demonstrate, advertise or request the transmission of material equivalent to the RC, R and X categories.

3.15 In relation to the general issue of definitional and other differences between the enforcement legislation of the individual States and Territories, the Committee notes that this would be a most unfortunate outcome given the progress towards uniformity which has been achieved over recent years. The Committee is aware that the State and Territory governments are under pressure to comply with their obligations under the intergovernmental agreement underpinning the passage of the Classification (Publications, Films and Computer Games) Act 1995 in a timely manner. The Committee urges all State and Territory governments to seek to align their definitions in relation to computer on-line services at the earliest opportunity. It would certainly be an unfortunate outcome for Australia if a case was repeated similar to US v Thomas where operators of a legal BBS in California were convicted of obscenity charges after a federal officer called the service from Tennessee where the law took a different view.

To regulate or not to regulate

3.16 As had been indicated by Ms Johnson from the Attorney-General's Department in relation to submissions to the Government's consultation paper, the Committee also received numerous demands that on-line services be left free from regulation by government. Arguments varied from 'it shouldn't be done', through 'it need not be done' to 'it can't be done'.

Regulation should not be done

3.17 The 'it shouldn't be done' argument comes from people holding the anti-censorship view that they do not need government to tell them what they can and can't see and say. In an idealised world, such arguments would be persuasive. However, this argument fails to recognise the potential for certain categories of material to harm or disturb members of society or to pose a danger to the community. Thus, child pornography is banned not only as a means of protection of young people from exploitation in the production of the material, but also in recognition of its use by paedophiles to satisfy their perversions. There are also suggestions that paedophiles use child pornography to lessen the resistance of their youthful targets. The Committee rejects this proposition that regulation should not be done..

Regulation need not be done

3.18 The suggestion that regulation of on-line services need not be done is based on a theoretical model of the high ethical standards of the majority of the on-line community imposing technical and social sanctions on any errant members. Devices include flaming, overloading of perpetrators' systems and as a last resort, cancellation of access by service providers. While such informal and contractual sanctions may prove effective as stop-gap measures, many industry players have suggested to the Committee that some form of governmental rule-setting would be of assistance to this process, by providing benchmarks of behaviour and content as the basis for formal sanctions.

3.19 Reference was also made to the existence of section 85ZE of the Crimes Act 1914 which provides that:

3.20 Several submittors emphasised that, until such time as this provision had been adequately tested in the courts, new legislation was inappropriate. Ms Johnson argued that:

3.21 Ms Johnson added:

3.22 Submittors expressed varying opinions about the force of such arguments. The Public Policy Assessment Society (PPAS) favoured the application of criminal law standards of proof, and argued that the government's consultation paper is proposing a system of 'criminal law sanctions with a veneer of self-regulation ...From the viewpoint of the user of on-line systems, this is the most repressive approach of all' (Evidence, p. s13). PPAS clearly expressed the view that no new laws were necessary in this area because of the Crimes Act provisions.

3.23 Considerable comment was received about the enforcement constraints of any provisions in this area. These ranged from privacy rights, problems of authentication of sender (who may use a number of technical means to avoid detection), hackers and use of encryption. Mr Peter Merel, a systems architect, informed the Committee that:

This discussion suggests to the Committee that a combination of the Crimes Act and compulsory strong cryptography could resolve both enforcement difficulties and provide service providers with a defence to prosecution.

Recommendation 2: That the Government give consideration to making the use of strong cryptography by service providers obligatory as a means of overcoming perceived enforcement problems with section 85ZE of the Crimes Act 1914.

Regulation cannot be done

3.24 Arguments that regulation of on-line services cannot be done are more complex, having technical, jurisdictional and enforcement elements. Managing Director of Ausnet Services Pty Ltd, Mr Thomas Koltai, told the Committee that:

3.25 These points were emphasised and expanded upon at length in the submissions, which are available for scrutiny by interested parties.

3.26 Other Service Providers took a more positive position in relation to the introduction of a scheme of government regulation. Compuserve advised the Committee that it believed that the Government's consultation paper was 'a very workable basis for a regulatory system' (Evidence, p. s100). Its Marketing Manager, Mr Brendan Lansdowne, emphasised to the Committee, however, his company's concerns about the need to clearly differentiate the responsibilities of the content provider on the one hand (i.e the author, creator, poster) and those of the service provider on the other (Evidence, 12.10.95, p. 130).

3.27 This point was repeatedly made by industry operatives, who were basically concerned that they might be held legally liable for the material which merely passes through their systems when they have no role in its creation nor would they be aware of what it contained.

3.28 Telstra, for example, informed the Committee that it operates across several sectors of the on-line industry not only as the network operator, but also as a service provider and a content provider. Its representatives informed the Committee that it favoured the principle of industry self-regulation, but was concerned about aspects of the government's proposed scheme. In particular its submission stated that:

3.29 Telstra particularly emphasised the differences in the relationship of such commercial on-line suppliers as On Australia 'where they have a reasonably close relationship with their content providers' with the Internet 'where there is no relationship' (Evidence, 12.10.95, p. 70).

3.30 Optus Vision also expressed in principle support for the government's regulatory strategy. It noted with concern however:

3.31 Optus Vision echoed Telstra's argument that 'the responsibility and liability of each category should be in proportion to the control which each has over the production of objectionable material and not in proportion to the role which each has in the physical transmission of that material' (Evidence, p. s330).

3.32 The Committee heard similar arguments from the then Telecom in relation to its role in the transmission of 'adult' audiotext services using the 0055 prefix. It argued then that, as a network operator, its primary function was to provide a better, faster, cheaper, more efficient infrastructure regardless of the nature of the traffic it carried. It strongly objected to any notion that Telecom be a censor of the material it carried.

3.33 While network operators such as Telstra and Optus cannot be expected to determine the acceptability of content of the material they transmit, they are in a commercial and contractual position with the service providers to ensure that some effort is made to address the content issue. Telstra's representatives informed the Committee that they do, in fact, have a contractual condition with their service providers in relation to operating legally; however, what the Service Provider then does is a matter for that business to determine.

3.34 The Committee would not wish to suggest that network operators should be held liable for the mere transmission of material through their infrastructure networks. Their role is, in this respect, no different from Australia Post which delivers mail but is not expected to know what is contained therein. Their responsibility should only be to ensure that appropriate constraints are placed in contracts with their clients, the access and service providers, which could be enforced should circumstances require. However, the Committee also believes that it would be appropriate for some part of the revenue gained by the network operators to be made available towards the cost of operating any regulatory system, as now prevails with the operations of the Telephone Information Services Standards Council in relation to audiotex services.

Recommendation 3: That subject to the making of contractual arrangements with access providers/service providers to require their compliance with the law, network operators should bear no responsibility or liability for material which passes over their networks.

3.35 The situation with companies marketing on-line services is less clear, however. There are several categories of suppliers, who have differing levels of involvement in the control of the material they transmit.

3.36 The most basic level is provided by Access Providers (APs) who provide conduits to the Internet. They typically provide "access points" to the system, so that individuals can call others located anywhere in the system. However, the content of the data is completely under the control of the originator.

3.37 As stressed by iiNet Technologies Pty Ltd (iiNet), an access provider based in Western Australia:

3.38 Telstra's representatives confirmed that APs have no control over material which is received over their systems and made available to end users. In fact, under the Telecommunications (Interception) Act 1979 they would be prohibited from listening in or recording communications over a telecommunications system, except under warrant. Telstra made the point that, should governments seek to place a liability on APs for what they are carrying, companies would not be willing to operate (Evidence, 12.10.95, pp 72-4).

3.39 The Committee notes the similarity in operations between Access Providers and the network operators, with one important proviso. While network operators operate only on a contractual level with on-selling companies, AP's deal with clients who will be both information/content providers and information/content receivers. iiNet argued that, given that it is beyond the ability of government to regulate overseas-sourced offensive material and, therefore, there can be no certainty about what material children might access:

3.40 The Committee concurs with this view in relation to the industry in general, and not simply Access Providers. The Committee is also of the view that, in seeking to ensure that minors are not connected to on-line services, Access and Service Providers be required to adopt whatever practical measures are available for ensuring the identification of clients, as an aid to future regulatory action. The approach adopted by the banks may be a useful model.

Recommendation 4: That Access and Service Providers be required to verify the identity of all clients and that all clients are over the age of 18 years.

3.41 The operational situation with Information Service Providers (ISPs) is less clear than with APs as they constitute a disparate group of companies offering a range of services in a competitive environment. Compuserve, for example, is both a content provider for a wide range of services and a marketer of content supplied by third parties. While it is prepared to take full responsibility for the content of its own services, it expressed concern that it should not be required by any regulatory system to take responsibility for third party content beyond enforcing the type of contractual mechanism it has with its members. Compuserve's Mr Lansdowne, told the Committee:

3.42 Mr Lansdowne then emphasised that Compuserve has contractual arrangements containing Operating Rules with its own information providers and to which all members of the service also subscribe when joining. These rules include the right to edit and delete inappropriate material, and to ensure compliance with legislation. Information placed on Compuserve Forums (equivalent to bulletin boards) is monitored after the fact, usually when a forum manager either spots untoward material or receives a complaint. Compuserve also provides a gateway to the Internet, over which the only technical control it is able to exercise is the selection of appropriate material in news groups. Through software, however, it is able to offer a subset of Internet called Kidnet by which parents and teachers can subscribe to a restricted range of information.

3.43 The Committee notes that such niche marketing is an increasing part of on-line services and offers one remedial option to parents and teachers concerned about children's access to adult services.

3.44 On Australia shared Compuserve's concerns about ISPs being held liable for material they had not authored, recommending instead that liability be imposed on either content providers or end users. On Australia has a Member Agreement which seeks to impose its self-regulatory standards on its users, including that:

3.45 On Australia reserves the right to remove any material from any service at any time and for any reason. It can issue warnings, impose temporary or permanent suspension, or terminate membership. Its major thrust in relation to children's access to adult services, while members must be over 18 years, is to issue parental warnings of the need for supervision.

3.46 On Australia's representative before the Committee was its external legal counsel, Mr Philip Argy. As a member of the National Information Services Council's Legal Issues Working Group Mr Argy developed tables and a matrix which determined the appropriate regulatory response to the different on-line functions by analogy with their physical world equivalents. The tables and matrix are attached to this report as Appendix 3.

3.47 These analogies between electronic and physical services led Mr Argy to assert that:

3.48 His major concern was that Australia might follow the New Zealand model which makes the ISPs liable for all the content they carry and to explicitly make "lack of knowledge" not a defence. Mr Argy described that approach as 'bizarre and unreasonable' (Evidence, 12.10.95, p. 122). Mr Argy saw such regulation as a virtual death sentence for on-line services in Australia.

3.49 The Committee acknowledges that only where ISPs have full control over material that is available on their equipment do they have a right and therefore a responsibility to act to control it. The Committee notes that section 85ZE of the Crimes Act is drafted in terms which distinguishes between the actions of the person who is perpetrating the crime and the carrier. This provision provides a useful model.

Recommendation 5: In any offence provision, a clear distinction must be drawn between the liability of the originator of objectionable material and a carrier of that material, in the manner of section 85ZE of the Crimes Act 1914.

3.50 Thus, it should be a defence to service providers that they unknowingly transmitted objectionable material. An ISP who decided to operate in a niche of marketing "adult services" should not, however, be able to use the fact of being as ISP solely as a defence to prosecution.

3.51 The Western Australian Censorship Bill 1995 provides one approach in this respect. Clause 102 states, in part:

3.52 Similar provisions relate to knowingly obtaining possession of or demonstrating objectionable material. The only defences offered relate to the material being of recognised literary, artistic or scientific merit, or a bona fide medical article and 'that transmitting, obtaining possession of, demonstrating, advertising, or requesting the transmission of, the article is justified as being for the public good.' Compliance with a code of practice is not a defence in relation to objectionable material, but is provided for in relation to restricted material.

3.53 A particular area of concern to the Committee, however, relates to the liability of ISPs when moderating services either through human or technical intervention. The Committee would applaud and endorse any ISP who attempted to regulate content through monitoring. However, there is an indication in a US court decision that, ironically, ISPs who seek to exercise editorial control over material from their sites could be found liable for the carriage of such content, while an unmoderated site would not.

3.54 On Australia's submission referred to the recent Internet Freedom and Family Empowerment Bill passed by the US House of Representatives. The bill provides that service providers and users of interactive computer services may not be held liable as a result of:

3.54 The Committee received no clear indication about the relevance of the US court's decision to the Australian situation. If there is the potential of the perverse result of ISPs being held more liable for seeking to "do the right thing" than doing nothing, then a law similar to the US should be introduced. The Western Australian bill offers such protection to defendants in relation to restricted material, but not objectionable material.

Recommendation 6: That where Service Providers can demonstrate that action had been taken in good faith to restrict access to objectionable material they should have a defence from liability for carriage of such material.

3.55 This discussion leads to the following issue: if ISPs are to be absolved from responsibility for the unknowing transmission of objectionable material, what if anything should they be expected to do in a proactive manner to regulate the flow of objectionable material, how should they go about controlling restricted material and what other material, if any, should they be expected to address.

3.56 Should the government, for example, establish a regulatory agency charged with scrutinising the industry's operations and launching prosecutions of untoward behaviour as proscribed in law. This approach would once have been the natural governmental response to such problems, but is now out of favour within the model of micro-economic reform which argues that it is not always appropriate for the taxpayer to have to pay for the regulation of a problem which is the creation of industry and for which industry should be held responsible.

3.57 Alternately, perhaps it should be obligatory on ISPs to set up mechanisms for identifying objectionable material, thus effectively denying the defence of "unknowing", and requiring them to remove any thus found. Given the sheer volume of material, the resource considerations of such a proposal would be substantial and possibly fatal for the industry. Even without formal intervention, some companies can be expected to offer moderated or pre-screened material as a niche marketing ploy.

3.58 The Government's approach to this issue is through the use of self-regulatory industry codes of practice. As described in its consultation paper:

Pre-classification is, of course, a practical impossibility with the volume of material in question.

3.59 The Committee recently examined the operations of codes of practice in the television industry and found much to commend the concept. Broadcasters are required to pre-classify material in a manner consistent with other media, but are held accountable for their decisions post hoc. The Committee noted a high degree of compliance with codes of practice in the television industry, with few breaches upheld by the regulator, the Australian Broadcasting Authority. Problems were noted principally in the level of public involvement in the system and with the inadequacy of sanctions available to punish errant behaviour.

3.60 The scheme of self-regulation outlined by the government seems to embody the positive elements of the broadcasting model, but introduced powerful offence provisions as an incentive to the self-regulatory process.

3.61 The government has also proposed the establishment of a single and independent complaints handling body as part of an effective self regulatory framework. The Committee has also examined the operations of such a body in relation to the audiotex industry. The Telephone Information Services Standards Council (TISSC) operates without any legislative basis to effectively limit the potential excesses of that industry. Its sanctions are based solely on contractual arrangements between network operators and service providers and its operations are funded by those parties.

3.62 An equivalent on-line services complaints body could receive complaints from the public about objectionable or restricted material available on-line and, after investigation, the body can direct the appropriate transmitter to take whatever action is technically feasible to remove the offending material from the system.

3.63 This proposal has several obvious advantages. Firstly, because it would consist of some industry representatives, the complaints body would always be up-to-date on technological developments. Secondly, the type of public involvement sought by the Committee in the broadcasting industry can be addressed for the on-line industry by an on-line invitation for volunteers to contribute their perspectives to the process of self-regulation. As suggested by the National Women's Media Centre, any such body should consist of at least one-third women to ensure that there is a reasonable gender balance in the decision making structure (Evidence, 12.10.95, pp. 90-1). Similarly, the Committee supports the view of the Association of Heads of Independent Schools that teachers and students should also be represented (Evidence, 12.10.95, p. 87). Further, costs of administration of the complaints body are borne by those who have a commercial interest in its successful operation.

3.64 The Committee does not wish to seek in this report to prescribe the appropriate content of codes of practice, beyond the prohibition on RC, X and R-rated material and any other matters raised above. It should also be obligatory for breaches of the law in relation to RC material to be referred to the relevant authorities. But, because of the technical complexity of the industry, the Committee accepts that the drafting of the codes is a matter best left in the first instance to the industry, especially given the concerns that a "one size fits all" approach is inappropriate. The Committee will maintain a close interest in the development of the codes, however.

3.65 What needs careful examination in the context of the development of the codes of practice is what other categories of material would be inappropriate for transmittal. Having noted in chapter 2 the argument that material which is a bomb recipe in the hands of a terrorist or a juvenile is no more than technical data to a munitions expert, it is clear that some close drafting is necessary to make such important distinctions. The TISSC code of practice, for example, states what content should not be included such as:

3.66 The Committee would see all of these provisions as equally appropriate to on-line services as to audiotex services.

Overseas developments

3.67 The Committee's terms of reference also required it to examine regulatory systems overseas. Given the global nature of the Internet, it would be an heroic task to address this issue on any comprehensive basis. The situation in the United States, possible source of much of the contentious material, makes an interesting case study for comparison with the Australian situation.

3.68 There have been four different pieces of legislation before Congress that address the topic of Internet regulation. The two principal proposals are the Communications Decency Act and the Internet Freedom and Family Empowerment Act. The former, proposed by Senators Jim Exon and Slade Gorton, originally sought to extend existing regulations designed for obscene and indecent audiotex to cover all content carried over all forms of electronic communications networks. The proposal would impose fines of up to $100,000 and two-year prison terms on anyone who knowingly transmitted any 'obscene, lewd, lascivious, filthy or indecent' communications on a telecommunications network. In this original form, telephone companies, commercial on-line services, the Internet and BBSs would have been liable for every item carried on their systems, including private conversations or messages between two consenting adults. In the version of the Act adopted by the US Senate in June 1995 by a vote of 84-16, amendments were included which targetted liability to the individuals or organisations which had made the untoward material available, not the network or service providers, and made it clear that electronic conversations between consenting adults would still be protected.

3.69 The second Act was adopted by the House of Representatives in April 1995 by a vote of 421-4. It specifically prohibits the Federal Communications Commission from regulating constitutionally-protected on-line speech and seeks to absolve service providers from liability if they had taken good faith measures to screen their content or had provided parental-screening software.

3.70 A third bill, sponsored by Senator Patrick Leahy, the Child Protection, User Empowerment, and Free Expression in Interactive Media Study Act, sought to direct the Department of Justice to study whether current law was sufficient to cover enforcement of existing obscenity laws on computer networks. A similar suggestion was put to the Committee by representatives of Telstra. However, Senator Leahy's bill was rejected by the US Senate in June 1995.

3.71 Finally, the Protection of Children from Computer Pornography Act has been sponsored by Senator Bob Dole and six colleagues. This bill would make Internet Service Providers responsible for shielding people under 18 years from all indecent content on the Internet. Little progress appears to have been made with this bill.

3.72 At the time of writing this report, the bills passed by the Senate and the House of Representatives had been referred to a Conference Committee of the House Committee on Commerce and the Senate Committee on Commerce, Science and Transportation for resolution.

3.73 An interesting comparison can be made with such South-East Asian countries as Singapore. Ausnet's Managing Director, Mr Thomas Koltai informed the Committee that Singapore was ahead of Australia in terms of on-line development, having adopted pro-active policies encouraging individuals to connect with the Internet. The Singapore Government has adopted policies in the past to restrict political dissent and pornography. Mr Koltai indicated that while Singapore has restricted its own citizens from placing such material on the Internet 'but they are leaving alone the stuff that is coming into the country' (Evidence, 12.10.95, p. 140).

3.74 Singapore's Communications Minister, Mah Bow Tan has been quoted as saying:

Education programs

3.75 The final element of the Government's strategy for the regulation of on-line services revolves around an education program directed at informing parents and teachers about the possible perils which might be encountered on the "information superhighway". Given that the indications are that the vast majority of untoward material is sourced from outside Australia's jurisdiction and that there are therefore minimal regulatory controls on its accessibility by children in the home or school, it is critical that users are alerted to what on-line services might contain and what measures are available to avoid unwanted access.

3.76 Representatives of the Association of Heads of Independent Schools emphasised:

3.77 The Australian Parents Council told the Committee:

3.78 The point was frequently made, and one which Committee members can personally relate to, that children are generally more computer literate than their parents. It is particularly difficult for parents to exercise adequate guidance in such circumstances and hence the need is clear for an education strategy directed at parents.

3.79 The Australian Council for Computers in Education sees great advantages for teachers from access to computer networks, especially those who are isolated geographically or professionally. In relation to offensive material it believes that:

3.80 The Council's President, Mr John Morgan, suggested to the Committee that one way to overcome this problem may be for computers to be placed in a more public place within the home where parents can become more involved in what is actually going on (Evidence, 12.10.95, p. 112).

3.81 Mr Morgan emphasised the value to parents of either subscribing to pre-filtered services or employing software devices. He noted that the New South Wales education system is developing its own site and service provision and is looking at having various levels of user registration which will allow access to only certain sites.

3.82 The Australian Council of State School Organisations (ACSSO) indicated in its submission its particular interest in the Government's initiative to develop the Education Network Australia (EdNA).

3.83 EdNA is the result of agreement by the Council of Ministers for Education, Employment, Training and Youth Affairs (MCEETYA) in May 1995 to co-operate in the establishment of a national education network. EdNA will link for the first time all schools, TAFE colleges, universities and other education and training providers across Australia, as well as internationally through a service network and modern technology for interactive communication. The network will develop as potential users gain access and as more material becomes available.

3.84 ACSSO stated:

3.85 Schoolsnet informed the Committee about its product, Censor Man, which applies a blocking mechanism on the server for a whole network. It can be adjusted to apply to different computers differently (so that staff access is different to student access) and the school can choose what material is to be blocked. It is also difficult to block because the software is inaccessible to the users. At a cost of $10,000 Censor Man may be out of reach of many schools, but has apparently proven popular with secondary schools in Victoria.

3.86 A number of short-term software blocking options are available on the market at prices within the reach of schools and private homes (a summary of which is given in Mr Greg Taylor's submission, pp. s441-2). In any education strategy, teachers and parents should be informed of their existence and their benefits and disadvantages.

3.87 Three of the major software companies in the US have formed a consortium called the Information Highway Parental Empowerment Group. The Committee was advised by On Australia, which is 50% owned by the Microsoft Corporation, a member of IHPEG, that:

3.88 Mr Greg Taylor's submission referred to IHPEG having recently announced plans to develop technical standards to enable voluntary rating by content creators (Evidence, p. s442). Several witnesses referred to this process of "tagging" as a technical means by which individuals and families can block certain material if they choose (Evidence, 12.10.95, p. 121 by Mr Argy and p.127 by Mr Merel; and Schoolsnet's submission, p. s384). Thus, either service providers or parents could, through software, restrict access to, say, sites carrying only "G" tagged material.

3.89 Schoolsnet noted that the standards by which authors would self-classify would need to be established by international consensus. While having some doubts about the proposal's likely effectiveness as a regulatory mechanism given the range of international concepts of community standards which would have to be embodied in the scheme, it is nonetheless an approach which the Committee would encourage the Australian Government to pursue at appropriate international forums.

Recommendation 8: That the Australian Government pursue at appropriate international forums the concept of classification at source of all material placed on-line, based on an agreed set of classification standards.

3.90 Several witnesses provided the Committee with a document "Child Safety on the Information Highway" produced jointly in the US by the National Centre for Missing and Exploited Children and the Interactive Services Association. The document identifies the following three areas of risk for children who use on-line services, particularly teenagers who may use computers unsupervised and who are more likely than younger children to participate in on-line discussions regarding companionship, relationships or sexual activity.

1. Exposure to inappropriate material

One risk is that a child may be exposed to inappropriate material of a sexual or violent nature.

2. Physical Molestation

Another risk is that, while online, a child might provide information or arrange an encounter that could risk his or her safety or the safety of other family members. In a few cases, pedophiles have used online services and bulletin boards to gain a child's confidence and then arrange a face-to-face meeting.

3. Harassment

A third risk is that a child might encounter E-mail or bulletin board messages that are harassing, demeaning, or belligerent.

3.91 The document concludes with a 6-point set of "My Rules for Online Safety" These are reproduced as Appendix 4 and are, in the Committee's opinion, a commendable starting point for any education campaign.

3.92 Parents and teachers need to be aware that, regardless of the best endeavours of regulators and technological and software devices to seek to limit objectionable material available on-line, children should not be, in the words of a submittor from the University of Wollongong:

3.93 While the Committee recognises that the education strategy is not a necessary part of the regulatory process currently in train, the Committee commends the Government for its stated intentions in this regard. The Committee urges all Governments to ensure that the educational program is funded at a level to ensure that all schools can be fully involved in the process.

Summary

3.94 In this report the Committee has directed its attention solely at the key issue of the regulation of obscene, offensive or other undesirable material available through on-line services. This is the charter of the Committee provided to it by the Senate. It recognises, however, that there are many legitimate and valuable services to be obtained on-line.

3.95 A simple listing of some of the most exciting opportunities provided on-line indicates its potential. X-rays and scans can be sent from specialist to specialist for analysis in seconds. Surgeons can confer on-line even when thousands of kilometres apart. Through videoconferencing schoolchildren can interact with others from around the world. Whole libraries are available on-line for ready access. Tele-shopping is close to a reality. Multimedia applications are imminent.

3.96 When consideration is given to what possibilities this technology holds for people living in remote locations, the opportunities are significant for the betterment of their lives. The Committee has been conscious in its examination of the issues that a fine balance needs to be struck between the retention of the many positive features available on-line and the regulation of the undesirable elements.

3.97 The Committee wishes to state that it has considerable faith in the goodwill of participants in the industry to take whatever measures are within their capabilities to discourage the purveyors of objectionable material from bringing them into disrepute. They have clearly indicated to the Committee, however, that some form of government guidance and support in this task would be most helpful.

3.98 The Committee believes that, in its recommendations in this report, it has given the industry a sound regulatory environment in which it can flourish while appropriate attention is paid to the areas of greatest concern. Equivalent self-regulatory schemes in broadcasting and audiotex services are generally operating effectively, especially after they have been subjected to periodic external scrutiny by the Committee.

3.99 In relation to progress with the regulation of on-line services the Committee will monitor with interest the conduct of the inquiry of the Australian Broadcasting Authority as it endeavours to seek to establish an effective basis for self-regulation for broadband services, the next generation of technological development.

3.100 The Committee is also aware that the march of technology is rapidly placing access to on-line services and the provision of on-line services beyond universal and effective regulatory reach. In that circumstance, the consumer of any age is alone to decide what material to view. It is then the responsibility of Government to ensure that the consumer is adequately aware of and possesses the necessary critical skills and information to make an informed decision for themselves.

3.101 Widespread public education and debate is essential for each consumer to make an informed choice about what material to view. To this end, the Committee intends to sponsor a conference to examine how such debate and education might be fostered, drawing on the widest possible range of experts and organisations with relevant skills, experience and responsibility.

Senator Margaret Reynolds
Chairperson