Labor proposes $100M tech duty of care

• Labor plans to fine major tech companies up to $100 million for failing to protect Australians from harmful online algorithms.
• The proposal will require social media platforms to let users turn off algorithms and view only accounts they follow.
• The government states the duty of care will establish basic safety standards for online services, while critics cite free speech concerns.

The Australian government is preparing to introduce a digital duty of care that could fine major tech companies over $100 million for failing to prevent harmful content from reaching young users.

The proposed legislation comes after the government abandoned its previous misinformation and disinformation bill in 2024 following opposition over freedom of speech concerns.

“The same way we have safety standards for cars, food and appliances, Australia is setting basic safety standards for online tools and services through our digital duty of care,” said Minister for Aged Care and Sport Anika Wells.

The draft laws will apply to social media companies as well as AI chatbots and gaming platforms, requiring them to protect users under 18 years of age from content related to disordered eating, crimes, bullying, and grooming.

The government states that the exposure draft will establish separate safety expectations for adults and children to ensure online products are safe by design.

Rules regulating online algorithms currently exist in other jurisdictions, including under the European Union’s Digital Services Act, which requires platforms to offer a non-profiled recommendation feed.

Local industry figures and Coalition politicians have raised concerns that the new compliance rules will restrict free speech and create an uneven regulatory environment for domestic businesses.