New rules are needed to force digital platforms to treat users “fairly”, says consumer watchdog chair Rod Sims.
In his final speech as ACCC chair, Sims acknowledged the progress on consumer law in Australia since the introduction of the Australian Consumer Law in 2011.
However, he said the next phase of consumer law reform should relate to digital platforms with market power.
“Digital platforms have business models that seek to exploit all the data they have on you,” Sims said while delivering the 2022 Ruby Hutchison Memorial Lecture.
“We need laws to prevent the misuse of this data, either by preventing so called ‘dark patterns’ that get you to act against your best interests, or requiring steps to prevent scams, or allowing appropriate dispute resolution.”
Since 2017, the ACCC has held an inquiry into digital platforms, with a focus on Facebook and Google, as well as an inquiry into digital advertising services.
Sims says it remains important for regulators to be “vocal advocates” for the rights of consumers and to identify opportunities for law reforms when needed.
“There are some who believe that regulators should only enforce the law as it is and not suggest publicly and need for law change,” he says.
“What a loss to the public debate this suggests.”
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