No referee: the online traps costing Aussies millions
Four in five Australians experience disputes with social networks and online stores, and it’s a growing problem costing consumers almost $500 million a year.
Despite the high fee, only three in five people complain about their problems, and many are unsure where to find help.
The Telecommunications Industry Ombudsman on Monday published the findings of a study into consumer experiences of digital services, including the most pressing issues and problematic platforms.
The investigation comes after a review of the Online Safety Act recommended the government appoint a digital ombudsman and the Australian Competition and Consumer Commission made a similar recommendation in its Digital Platform Services Inquiry.
The report, prepared by the Center for Consumer Policy Research, surveyed more than 1,000 people about their online experiences.
It found most Australians (80 per cent) had experienced at least one issue with online services in the past year, with almost half (45 per cent) experiencing four or more difficulties.
Locked or inaccessible accounts were the biggest problem, followed by problematic payments and lack of customer service.
Two in five people (40 per cent) did not complain about their online problems, and the two-thirds who did complain were unhappy with the outcome.
Chandni Gupta, the center’s vice president, said consumers often have to fend for themselves online and face serious obstacles.
“Too many people get stuck in a complaint loop, unable to reach a real person, bounced between automated systems, and left without resolution or closure,” he said.
The report said digital service issues cost Australians $497 million each year, but individual losses could be higher.
Online retailers and marketplaces suffered the most problems, with Temu, Amazon and AliExpress being the top sources.
While social networks are in second place, Facebook, Instagram and YouTube are in the top three.
Telecommunications Industry Ombudsman Cynthia Gebert said the lack of a digital services regulator was disappointing to consumers.
“People are coming to us, grasping at straws, trying to find someone who can help them if they have a complaint,” he told AAP.
“They feel like they are hitting brick walls trying to manage the processes of digital platforms and digital service providers.”
Ms Gebert said the ombudsman could solve consumers’ problems if the government expanded its powers, and an ombudsman plan would make tech companies pay for it.
“It’s not the platforms that are bearing the brunt right now, it’s ordinary Australians,” he said.
“It is time for adequate consumer protection.”
The federal government noted the proposed digital ombudsman scheme in its review of the Online Safety Act but has yet to act on it.
