The Telecommunications Industry Ombudsman (TIO) has raised concerns over inadequate consumer protections following a series of account lockouts on platforms such as Facebook and Instagram. These lockouts, often triggered by AI systems incorrectly flagging users for violations of Community Standards, have left many individuals and small businesses without access to vital marketing tools and customer connections.
Reports indicate that the impact of these lockouts can be particularly severe for small businesses, which risk incurring significant financial and reputational damage. According to the TIO, complaints regarding digital platforms are regularly received, even though these issues currently fall outside its jurisdiction. In 2023 and 2024, over 500 consumers and small businesses reached out to the TIO regarding problems with digital platforms.
Growing Consumer Frustration
The data reveals that more than 60% of complaints were related to access and account issues, with over 70% tied specifically to platforms owned by Meta and Alphabet. Beyond the economic ramifications, users also reported losing years of personal memories, sensitive data, and important communication due to account lockouts or hacks.
Consumers are expressing increasing frustration, often feeling they have nowhere to turn for support. In a survey conducted by the Australian Competition and Consumer Commission (ACCC), 82% of respondents indicated a desire for an independent external dispute resolution (EDR) service to assist in resolving complaints related to digital platforms.
The TIO, alongside the ACCC and the Independent Review into the Online Safety Act, advocates for the establishment of a digital platforms ombudsman to facilitate a fair complaints process that operates independently of the social media companies.
Call for an Ombudsman
Freyja McCarthy, Executive General Manager of Legal, Policy and Regulatory Affairs at the TIO, emphasized the urgent need for reform. She stated, “Consumers are frustrated because they are hitting AI brick walls when they need help with their social media accounts. They are turning to the media for help because they have nowhere else to go.”
McCarthy further noted that the TIO frequently hears from consumers and small businesses who feel abandoned when internal dispute resolution efforts from social media companies fail. “We need an Ombudsman to play a vital role in increasing trust and confidence in the digital economy and providing individual redress to consumers when things go wrong,” she said.
With over 32 years of experience and a commitment to consumer-focused solutions, the TIO is prepared to implement a scalable EDR scheme that meets the needs of a modern communications landscape. The TIO’s proposed approach aims to enhance consumer protection and ensure that individuals have recourse when faced with issues on digital platforms.
The call for stronger consumer protections underscores a growing recognition of the challenges posed by digital platforms and the urgent need for a responsive regulatory framework that prioritizes user rights and access to effective dispute resolution.
