There is turmoil in the world of policy to regulate online age restrictions, as regulators and age assurance providers tug in different directions over fluid outcomes in an exploding market.
A publication produced for the UK government’s Department for Science, Innovation & Technology looks at the potential impact of changes to the Online Safety Bill (OSB), through a survey conducted by Revealing Reality to gauge how changes to the policy and requirements stood to impact organizations’ pocketbooks.
The changes to the OSB encompass priority offenses that require proactive measures to block underage users; requirements for identity verification, age assurance and terms of service; and duties to to protect news and journalistic content, or “content of democratic importance.”
The survey work is wide-ranging, soliciting data from sectors ranging from social media to porn to fitness to literature. The report goes into detail on sample size, methodology and limitations in terms of which organizations responded. But the crux of it is stated clearly in its findings.
“Generally, organizations did not raise significant concerns” about the changes to the OSB. Select costs pop up for staffing, resources and investment in technology, as well as certain additional service costs. And “there are concerns in areas where the ambiguity in how the regulation is applied could have larger ramifications.” None of it is enough to raise alarms.
“Though they need to see the detail of the actual regulatory requirements to fully assess the impact on costs,” most organizations say they already have “systems in place that they believe would meet the majority of requirements outlined in the OSB.”
AVPA calls bluff on costs of user age assurance for porn
Such complacency sounds fishy to the Age Verification Providers Association (AVPA). Posting a response to the findings on LinkedIn, AVPA says they “contrast starkly with ongoing Ofcom research showing around a third of children are still registered on social media platforms with a false adult age.”
The non-profit trade association also takes umbrage with some of Revealing Reality’s calculations, notably in the matter of porn sites. The sole large standalone pornography site that participated in the survey estimated it would cost around 5-20p per transaction for “AI/hash-list scanning to detect underage material.”
AVPA says that “using this cost they estimated this would cost the business about £500,000 per month for the UK alone. They felt this would not be feasible.”
AVPA believes the calculation on age verification is flawed, skewing high on fees and failing to take registered users into account. (Not to mention that checks for “underage material” are not the same as user age checks, or that, as the paper notes, “it is unclear where this cost has arisen from.”)
Pointing to the note that some age assurance providers offer solutions ranging from £0.01 per transaction, AVPA slings some math of its own to argue that age assurance would be a marginal service cost for pornographers making tens of millions of pounds a month.
“Would these marginal costs really mean their UK business would ‘not be feasible’? We will have to wait and see if they shut down in the UK and block all VPN access in January when this provision comes into force…”
Liminal sees age assurance market showing huge growth, penetration
According to Liminal’s latest Market and Buyer’s Guide for Age Assurance, the age assurance market is forecasted to grow from $5.7 billion in 2025 to $10.4 billion by 2029, swelling 17.3 percent annually. The upward thrust is being driven by regulatory pressures, increasing consumer expectations and the need for businesses to offer secure and frictionless user experiences.
“As online trust and safety concerns grow, age assurance has become essential for businesses committed to protecting young users while remaining compliant,” says Filip Verley, chief innovation officer at Liminal, in a release. “Our research sheds light on the complex regulatory landscape and provides actionable guidance to help companies implement effective, user-friendly solutions. Organizations that prioritize trust and safety, backed by secure and compliant age assurance, will lead the way in building safer digital environments.”
Regulations like the GDPR and the UK’s Age Appropriate Design Code are establishing precedents that have ramifications for the adult content, e-gaming and commerce sectors, among others – not least of which is social media, currently in a lockup with regulators after years of sliding by with iffy protections. Increasingly, it is a question of finding the edge between compliance and customer experience.
“Companies are challenged to find a balance between accuracy, privacy, and ease of use,” says Verley. “Inadequate systems can result in user drop-off or legal risks, so striking this balance is crucial for maintaining a competitive edge.”
Generally, companies should prioritize user experience and smooth integration, focus on scalability, stay ahead of the curve on trust and safety, and invest in fraud detection. The last point comes with an especially staggering stat, showing deepfake and synthetic fraud up 3000 percent last year.
The full report is available through this release.
Article Topics
age verification | AVPA | digital identity | Liminal | market report | Online Safety Act | social media
