Small business disputes with large tech platforms have increased by 86 percent in the past year, according to Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson. The main culprits were Meta-owned platforms Facebook and Instagram, which accounted for 73 percent of all disputes in the last three months. Nearly two-thirds of these cases involved hacked accounts. Rideshare app Uber made up 17 percent of incidents, with one in four disputes related to unpaid drivers.
Billson noted that over the past two years, the number of small and family businesses experiencing disruptions on digital platforms has more than doubled. He criticized digital platform providers for providing inadequate assistance when problems arise, leaving small businesses to navigate complex processes without sufficient resources or time.
Instead of resolving issues themselves, large tech corporations place the burden on small businesses. Often, those seeking help are told they need to log into their account even though they are unable to do so. Billson called on digital platforms to improve their support for small businesses by offering clear and accessible assistance from real people.
When small business owners approach ASBFEO’s office for help, they are often overwhelmed and stressed due to existing economic pressures like rising living costs. Billson emphasized that having someone else access and control a business’s account can be devastating for its reputation and financial stability.
To address these issues, Billson urged digital platform providers to implement transparent procedures for resolving small business disputes as part of ASBFEO’s recently released “14 Steps to Energise Enterprise.” He also recommended promoting external dispute resolution services and establishing dedicated contacts for agencies like ASBFEO.
In addition, ASBFEO has produced a guide on using social media securely that offers prevention tips for small businesses regarding reducing hacking risks and steps to take if an incident occurs. Some recommendations include treating online business security like physical security by implementing multifactor authentication, changing passwords frequently, backing up files regularly, activating software updates, and considering eInvoicing or PayID options.
According to the Australian Competition and Consumer Commission (ACCC), Australians lost $2.74 billion due to online scams in 2023 alone. Although overall losses declined by 13.1 percent compared to the previous year, there was an increase in victims by 18.5 percent—over 601 thousand individuals reported falling victim—particularly involving phishing scams, payment redirection scams,and job scams.