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Lock-outs, fake online reviews and other issues require clear, standardised resolution procedures, says ASBFEO.
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Digital platform disputes ‘a nightmare for small business’
28 April 2023
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10 minute read
Fake reviews and online trash talk require a formal remedy mechanism because digital platform disputes are a nightmare for small business, the sector ombudsman says.
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He said many small businesses had become hostages to digital platforms – Google, Facebook and their peers – but their dispute resolution processes were opaque and not up to the task.
The answer involved shortcut referrals to the ACCC and mandatory complaint mechanisms, the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, said in a Senate inquiry submission.
“These platforms, which have fundamentally changed the way in which small businesses connect and sell to their customers, must make their self-help and internal problem solving more effective,” Mr Billson said.
“There have been too many examples of small business owners being locked out of their account, typically after being hacked, and it can be a nightmare trying to contact a real person to resolve their problem.
“This typically means a business loses access to their advertising, communication with customers, ability to provide posts about their services, intellectual property and key contacts for their business. It can also see charges accrue on accounts where advertising or credit cards are linked.”
Mr Billson said there had been a noticeable increase in complaints and disputes involving digital platform providers and since July 2020 the ombudsman had taken on more 230 cases.
When ASBFEO became involved the problem was often quickly solved, but small business needed tools to protect themselves.
This was particularly true when it came to malicious content designed to damage a business.
“Small businesses are especially vulnerable to fake review campaigns and fraudulent misrepresentation,” he said. “We’ve heard about cases of small businesses being held to ransom over fake reviews, with scammers only removing them once they receive payment.
“Most disturbingly, there are commercial service providers that help new players break into a market by generating hostile contrived reviews for existing providers.”
Mr Billson said existing laws are not well suited to dealing with this.
“Fake reviews and fraudulent misrepresentation of a business may remain visible while investigations take place and small business owners are left helpless as they watch this damage their business.
“This can impact not only business viability but the mental health of the small business operator and their employees.”
Mr Billson called for the creation of a super-complaints mechanism that gave ASBFEO and other agencies the power to refer cases directly to the ACCC for guaranteed investigation.
He also endorsed an ACCC recommendation for a mandatory notice-and-action mechanism that would allow anyone to notify digital platforms of potential illegal content on their service and require them to act.
“Some people have built their entire businesses on social media and digital platforms and having someone else access and control their account is devastating for their business and their reputation,” he said.
“They watch the financial and emotional damage occur in real time with no ability to stop it.”
But government bodies should need be required to intervene on every problem – the platforms themselves needed transparent procedures for dispute resolution.
“It is crucial that platforms implement clear, appropriate and standardised internal procedures to enable a timely resolution for small business disputes,” he said.
“Doing this and providing clear escalation points and dedicated contacts for dispute resolution agencies would mean small businesses can have their dispute handled efficiently and resume operating their businesses sooner.”
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