Internet Society of Australia
A Chapter of the Internet Society


Response to DOCA/ABA Regulatory Framework Principles



From:
   The Internet Society of Australia, a Chapter of the Internet Society
   ACN 076 406 801

To:
   The Assistant Secretary
   Online Industry and Communications Technology Branch
   Department of Communications and the Arts
   GPO Box 2154
   CANBERRA ACT 2601

   Email: online@dca.gov.au

Dear Mr Stewart

Re:	Principles for a regulatory framework for online services in the
        Broadcasting Services Act 1992

The Internet Society of Australia (a Chapter of the Internet Society)
appreciates the opportunity to comment on the abovementioned principles.

A detailed discussion is attached; in summary however we feel that the
proposed principles are inappropriate and unworkable because:

a)	they ignore the issue of externally sourced material
b)	they fail to firmly distinguish between a content provider and a
        service provider
c)	they seek to make service providers responsible for content
d)	they provide no meaningful protections to service providers and thus
        leave them open to malicious attack
e)	they have the effect of applying a more censorious process to material
        carried by service providers than would apply to the same material being
        disseminated by more traditional means.

The end result of implementing these principles in legislation can only be a
severe chilling of legitimate free speech and a literally impossible
regulatory burden on service providers; together, a disaster for the growing
Australian online community, for the Australian information economy and for
ordinary Australians.

We hope the attached comments will be of assistance in framing a more
realistic and effective regulatory framework. Please do not hesitate to
contact us for more information.

Yours sincerely


Karl Auer
Vice President,
The Internet Society of Australia
15 August 1997


Executive summary
~~~~~~~~~~~~~~~~~

The proposed framework seems to derive largely from two serious
misunderstandings about the nature of online services - firstly a belief
that the same kinds of restrictions that apply to more traditional media can
be applied largely unchanged to online services, and secondly a belief that
service providers are like publishers.

The framework (taking into account also various other statements made by,
for example, Senator Alston) has as it's stated aim the balancing of
freedoms of speech and the benefits of online systems against the need "to
protect children". The proposed framework can achieve neither aim.

No legislative framework can succeed unless it is based on this simple
premise: Only a person who with specific knowledge of the material makes it
available to others can reasonably be held responsible for that material.

Service providers for the most part provide automated services. They cannot
reasonably be expected to know about the specific content of the material
their systems handle, any more than Australia Post could be expected to have
knowledge of the parcels and letters it carries. Privacy issues would
suggest that in any case service providers should not, even if they could,
inspect material without due cause.

The proposed framework cannot have any meaningful effect in terms of
protecting any group in Australian society from any particular kind of
material, because the legislation can affect only material stored on
Australian systems. The vast bulk of material, of all kinds, comes from
outside Australia.

Even to the extent that it is possible for them to detect illegal material,
service providers placed in the role of censor will naturally "cut with a
chainsaw" rather than risk the penalties associated with permitting possibly
illegal material to remain on their systems. This will inevitably reduce
freedom of expression for Australian citizens - a poor result indeed,
considering that no positive outcomes can be traded against the loss. If
service providers remove, without reference to appropriate authorities,
content they suspect is illegal, they may harm the process of bringing
illegal content providers to justice.

By imposing more restrictions and greater burdens on systems storing or
processing content in Australia, the framework is a blueprint for pushing
such systems offshore, depriving Australia of the benefits of infrastructure
and skills that accompany the operation of such systems.

We urge the Government to begin anew; to build a set of principles that
acknowledges the realities of online services, that places responsibilities
where they belong and that genuinely supports and protects Australians in
their use of these technologies.

Detailed response
~~~~~~~~~~~~~~~~~~~

In this section, each subsection is numbered for the paragraph or section in
the proposed framework which it addresses.

1	Most online services are not broadcast services. It is regrettable
        that such a fundamental misconception should be enshrined in the very
        title of the Act. Phrases like "transmitted through online networks"
        perpetuate this misconception - almost all material accessed via online
        services is deliberately selected and consciously obtained by a person
        seeking that particular material.

	This is a far more fine-grained process that merely selecting a
        television channel or radio station, and a correspondingly greater
        level of responsibility for the action rests with the person thus
        choosing the material.

2	This section begs the questions, "what community standards?" and
        "where is the content?"

	The Internet in particular is a global medium of exchange; in that
        context what possible meaning can the phrase "community standards"
        have? Basing real legislation, with real penalties for real people on
        such vagueness is a mistake.

	Similarly, where can a complaint reasonably be lodged about material
        originating in one country, stored in another and accessed in Australia?

3	The stated goal of "avoiding inhibiting the growth and development of
        the online services industry by placing unreasonable regulatory
        constraints..." is in direct and fundamental conflict with the measures
        given in the remainder of the framework.

	In particular, imposing an impossible regulatory responsibility on
        service providers can have no effects other than to raise prices, drive
        larger businesses offshore and small enterprises out of business.  

4	We can see no particular need for codification of responsibilities of
        service providers with respect to content. However, an explicit
        immunity for service providers from liability related to content not
        created or made available by them, would be a positive regulatory move.

	In the case of material created by or made available by the service
        provider, where the service provider has specific knowledge of the
        nature of the material, the service provider should have the same
        responsibilities as any other content provider.
 
5,6	We disagree that there should be any content-based regulation of online
        service providers as such.

	There may be scope for legislation of a general trades-practices type,
        but online service providers cannot reasonably be made responsible for
        content that they do not themselves create or, with knowledge of the
        material, make available to others.

7,8,9	In our opinion a complaints mechanism regarding content should not
        involve service providers unless they themselves are responsible for
        the content. This seems to be covered by paragraph 9, but given the
        current enormous disparities between what is illegal in different
        states and/or federally, the task for a conscientious content provider
        would seem to be onerous indeed - especially given that online services
        effortlessly transcend state, federal and national borders!

	That noted, we are deeply concerned by the effect of paragraph 8 and
        the referenced paragraph 24(a). Together, these provisions force
        service providers into the role of censor; requiring them to make
        judgements about what "would" be refused classification by the OFLC,
        or that "would" be illegal.

	We submit that a service provider has an obligation only with respect
        to material that is in fact illegal; that is, material which has
        actually been classified by the OFLC or material which has actually
        been declared to be illegal. In the event that material has not yet
        been specifically classified, it should be up to the complainant to
        seek and the relevant authorities to make a determination regarding
        the material and if necessary issue a duly constituted court order
        requiring the service provider to take appropriate action with respect
        to the material.

	In the event that the service provider then fails to comply with that
        order, only then should the service provider be legally liable.

	Requiring the service provider to make judgements about the nature of
        content is unfair and inappropriate.

10-20	These paragraphs again miss the point that online services - the
        canonical example is the Internet - can and do carry information of
        literally all types. It does not make sense to exclude or include any
        particular types of content, or to exclude or include particular
        functions such as telephony.

	If content regulation is to apply to online services, it must apply
        equally to the telephone, to the postal service and so forth. It is
        perhaps this point which most powerfully illustrates the folly of
        attempting content regulation at the infrastructure level.

21-25	We have noted above (see the discussion of paragraphs 7,8 and 9) that
        paragraph 24 would impose an impossible and inappropriate responsibility
        on service providers.

	We are also concerned that these paragraphs give what amounts to
        sweeping powers to the ABA to create new responsibilities and new
        regulations governing service providers. There so not seem to be any
        controls on these powers; no avenues of appeal, avenues by which
        service providers or others can influence such matters and so on.

	If the ABA is to become, in effect, the primary censorship body in
        Australia (not an outcome we recommend or are in any way comfortable
        with), it at least needs to have heavily circumscribed and controlled
        powers.

26-35	While we are not opposed to Codes of Practice as a means of providing
        consumers with appropriate information and avenues of redress in a
        trades practices context, we stress that Codes of Practice are not
        appropriate as a means of content regulation.

	We would also caution against the creation of or support of "kitchen
        sink" Codes of Practice. Many service providers are very small - there
        must be room within any framework for such businesses to be accommodated
        without impossibly high regulatory burdens. The framework as presented
        seems to allow only one code of practice.

	With respect to some popular suggestions such as age verification
        procedures, we also caution against the imposition of plausible but
        ultimately meaningless procedures.

36,37	Many of our comments above apply to these paragraphs also. In particular
        the phrase "would be" is totally unacceptable.

	We are also concerned at what "means " (paragraph 26(c) might be
        envisaged; while it may be possible to restrict the opening of access
        accounts to minors without parental permission, it is NOT possible to
        ensure that all subsequent access via such accounts is being supervised.
        Service providers must not be held liable should a parent or other
        person permit unsupervised access by a minor.

	Labelling schemes (paragraph 36(f)) are at present very much a
        developing technology. We remain dubious that such schemes can ever
        have a significant effect other than as a selection method for persons
        seeking particular types of information.

	Paragraph 36(h) is unacceptably broad, leaving the way open to
        populist and political censorship.

38-45	We find it unacceptable that the ABA should be able, without any
        reference to proper due legal process, make a full and legally binding
        determination with respect to content, or indeed any other component of
        service provider practice. A dispute with the ABA or a dispute over the
        interpretation or applicability of a "service provider rule" should
        under no circumstances constitute in and of itself an offence.

	Given that many service providers support the day-to-day activities of
        a great many users at all levels, the impact of shutting a service
        provider down could be dire indeed! Nothing less of a properly
        constituted court order following appropriate due process should be
        involved when such an extreme action is seen to be necessary.

	The powers and sanctions mentioned in these paragraphs make a mockery
        of the idea of self-regulation; as the EFA has described it, this is
        "self-censorship at the point of a gun".

46-47	The roles described in these paragraphs are astonishingly wide. Not
        once are avenues of appeal mentioned!

	In our opinion, the role of the ABA, if it is to have one in respect
        of online services, should be restricted to building policy and
        providing a bridge between the online community and the needs of
        Government.


30.8.97