Increase of 86% in Small Business Disputes on Major Tech Platforms: Ombudsman

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.

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