The Government has responded to the ACCC Digital Platform Service’s Inquiry Interim Reports.

Digital platform services covered include internet search engine services, social media services, online private messaging services, digital content aggregation platform services, media referral services and electronic marketplace services.

The Inquiry also covers digital advertising services supplied by digital platform service providers and the data practices of both digital platform service providers and data brokers.

In response to the ACCC’s recommendation for digital platform-specific consumer measures the Government says:

• it is exploring the development of industry codes to outline the responsibilities of the private sector, including digital platforms, in relation to scam activity.
• it is considering further specific obligations on platforms to address concerns relating to harmful apps that could be part of an App Marketplaces code under any new competition regime.
• The Government will consider whether disputes over fake reviews could be effectively managed through proposed dispute resolution processes as well as potentially utilising misinformation and disinformation and scams regulation.

The Government supports in principle the development of a new digital competition regime that addresses anti-competitive behaviours of certain digital platforms.

In a recent speech, the ACCC Chair highlighted that data is the key currency of many digital platforms. Consumers often pay in data to use these services and it’s collected, aggregated, and monetised by digital platform services. In doing so, these platforms build richer data sets about individual consumers.

She emphasised that digital platforms’ data practices can raise significant competition and consumer issues which often intersect with privacy law.

She observed:

“the ACCC has previously found consumers of digital platforms services are generally not aware of the extent to which their data is collected, nor how it is collected, used and shared. This is influenced by the length, complexity and ambiguity of businesses’ terms of service and privacy policies, many of which contain vague statements such as ‘we may share your data with trusted third parties,’ with little or no information available as to who these third parties are.

If businesses misrepresent their data collection and usage practices to consumers, this may lead consumers and other businesses to underestimate the potential harm that could arise from a data breach or other misuse of their data. In turn, such problems may reduce consumer trust in data-driven innovations and limit the benefits the digital economy can bring.

Lack of transparency about how digital platforms collect, use and share consumers’ information may not only raise privacy concerns, but in Australia, may also constitute misleading or deceptive conduct under our consumer laws.”

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Author: David Jacobson
Principal, Bright Corporate Law
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The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.