The plans are expected as soon as next year, and will form part of the Government's Media Bill which will also promote "distinctively British content".
The move comes after Netflix was accused of misleading viewers in 'Harry & Meghan', a six-part documentary series released over the early part of December fronted by the Duke and Duchess of Sussex.
A photograph used in the documentary's trailer, purportedly showing how the couple were hounded by the press, was later revealed to have been taken at a Harry Potter film premiere, five years before the couple met. The trailer also included footage that appeared to show photographers scrambling for a shot of the Duke and Duchess in 2018 - but which in reality depicted paparazzi chasing glamour model Katie Price outside a court where she had been sentenced for drink driving.
The documentary itself contained a recording of a speech delivered by the late Queen Elizabeth II, on her 21st birthday in South Africa, that had been edited in an apparent attempt to emphasise a quote about her love of the British Empire. Royal sources complained that viewers learning for the first time about the late Queen and the Commonwealth from the documentary would be presented with an "appalling and factually inaccurate" account.
On the day 'Harry & Meghan' was released, Ofcom was forced to issue a statement reminding the public that it was powerless to take any action despite being "sometimes contacted by people who've seen something they found harmful or offensive on a streaming service like Netflix".
The Culture Secretary, Michelle Donelan, is hoping to bring forward the Media Bill next year to establish a legal basis for Ofcom to regulate streaming services that are not based in the UK. This includes both Netflix and Apple TV+, which are based in the Netherlands and Ireland, respectively.
A spokesman for Netflix said the company was "supportive of the measures to update the legal framework and bring our service in the UK under Ofcom's jurisdiction" but did not comment on claims of inaccuracy directed at the Harry & Meghan documentary.
Under the broadcasting rules outlined in Ofcom's code, "factual programmes or items or portrayals of factual matters must not materially mislead the audience".
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