TIO aims to lead service for digital platform complaints

The Telecommunications Industry Ombudsman (TIO) made a submission to Treasury in late February 2023 to take on the role of the Digital Platforms Ombudsman. The move was in response to Treasury’s follow-up consultation arising from the Australian Competition and Consumer Commission’s (ACCC) Inquiry into Digital Platforms.

This inquiry found the lack of an independent umpire is a significant gap in the consumer protection and regulatory framework, which leaves consumers and small businesses with no avenue to have their complaints independently resolved.

The submission outlines how the TIO is the right body to handle digital platform complaints as the organisation is an established external dispute resolution (EDR) scheme trusted by industry, government and consumers.

In addition, the TIO already receives complaints from consumers about digital platform services but can do little to help as these matters are out of its jurisdiction, and these platforms are not members of the scheme. These complaints include problems accessing an account, scams and fraudulent behaviour, and businesses disputing online reviews and comments.

The ACCC defines a digital platform as a website or app that is used by multiple groups of people at once, and where the platform and its users get value out of the contribution and presence of other users. This can include social media or online communication apps, and internet search engines.

Ombudsman Cynthia Gebert said the expansion of TIO responsibilities makes sense in the changing technology landscape.

“In recent years, we’ve seen rapid developments in technology, regulation and consumer expectations, and a general transition towards smartphones and other devices.

“This convergence of telecommunications and digital platforms means people now make calls and send texts through phone apps like WhatsApp and Messenger, they do business through social media platforms like Instagram and advertise on Google,” she said.

“My office is already hearing about problems with digital platform services from people and small businesses who assume we are the right body to respond to these complaints.

“The TIO is ready to expand its remit to take complaints about digital platforms, either through a pilot or as a permanent part of our jurisdiction.

“We have the expertise to help consumers and the digital platforms find resolution with complaints and highlight systemic improvements that can create meaningful change.”

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