With the advent of sharing economy platforms such as Uber and Airbnb no longer the exclusive realm of millennials, the Australian Competition and Consumer Commission (ACCC) has published a guide for Platform Operators in the Sharing Economy (Guide) to advise of their obligations in complying with Australian competition and consumer protection laws.
The Guide is aimed at operators who run online platforms that facilitate the connection of suppliers of goods and services with consumers who need short-term use of those goods or services.
Key principles
The ACCC Guide provides four (4) key principles to guide platform operators in their day-to-day decision making:
- transparency – making important information such as platform policies and full pricing information clear, prominent and easily accessible;
- accuracy and honesty – not misleading or deceiving consumers, ensuring all statements made are accurate, having clear policies and processes in place to prohibit, detect and prevent “pheonixing” behaviour, (that is, a user closing an old account and opening a new account, in order to overcome poor reviews or a ban from the platform);
- effective review processes – quality control over review ratings so that conduct that manipulates ratings is prevented and or stopped, and fake or misleading reviews are not published. Ensuring the accuracy of statements and reviews to ensure that the consumer is not mislead; and
- fairness in dealings with consumers and traders – complying with the provisions of the ACL, including the unfair contract terms, unconscionable conduct and consumer guarantee provisions. Being reliable and not taking advantage of the consumers and traders who place their trust in the platform.
The guide also presents competition and consumer protection obligations of platform operators, processes in respect of reviews, (including for misleading and fake reviews), transparency obligations in respect of terms and conditions, policies and the pricing obligations for goods and services.
Links and further references
Legislation
Competition and Consumer Act 2010 (Cth)
Competition and Consumer Legislation Amendment Act 2011 (Cth) Schedule 2
ACCC guides
ACCC Advertising your business – Social Media
ACCC Guide for business and review platforms
ACCC Guide: Platform Operators in the Sharing Economy (2016)
ACCC Guides for – Online reviews
Further information about platform operators
If you need assistance with operating an entity within the sharing economy, please telephone me (no skype for initial inquiries please) for an obligation free and confidential discussion.
Malcolm Burrows B.Bus.,MBA.,LL.B.,LL.M.,MQLS.
Legal Practice Director
T: +61 7 3221 0013 (preferred)
M: +61 419 726 535
E: mburrows@dundaslawyers.com.au
Disclaimer
This article contains general commentary only. You should not rely on the commentary as legal advice. Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.
Related insights about platform operators
-
Labor plan to abolish non-compete clauses from 2027
On 25 March 2025, the Albanese Labor government announced in its 2025-26 Budget (Budget), that it intended to abolish non-compete clauses in employment contracts for approximately three (3) million workers from 2027.
-
Damages for competitor misleading conduct under the ACL
Section 236 of the Australian Consumer Law (ACL) entitles any person, including corporations – to claim compensation for loss or damage suffered from misleading or deceptive conduct. The High Court has developed numerous general principles for assessing loss or damage which we will discuss in this article.
-
Changes to the Franchising Code of Conduct
The current Franchising Code of Conduct (Old Code) is scheduled to “sunset” (meaning it will automatically expire unless extended or replaced) on 1 April 2025, with the Competition and Consumer (Industry Codes–Franchising) Regulations 2024 (Cth) (New Regulations) coming into effect on the same date.
-
New Anti-Money Laundering Bill
On 11 September 2024 the (Bill) was introduced to the House of Representatives.[1] The Bill will amend the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act) to include provisions regarding deterrence, detection and disruption of money laundering and terrorism financing.[2] Most changes will take effect from 31 March 2026.
-
Overview of the illegal phoenixing regime
The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) (Amending Act) came into force on 18 February 2020 and was designed to prevent illegal phoenixing activity. The Amending Act introduced reforms such as creditor-defeating disposition provisions to combat phoenixing activity. Additional provisions amending the Corporations Act 2001 (Cth) were aimed to encourage accountability by…
-
Unfair contract terms – automatic renewal clauses
9 November 2023 was a crucial date for Australian businesses because from that date significant penalties can now be imposed on businesses found to have unfair contract terms (UCT) in their contracts. The Federal Government had introduced significant changes to laws relating to UCT on 10 November 2022.
-
Australian legislation addresses loot boxes in video games
The Classification (Publications, Films and Computer Games) Amendment (Loot Boxes) Bill 2022 (Bill) has been tabled in the House of Representatives on the 28 November 2022. The private member’s Bill acts in response to growing support for the regulation of features and elements within video games which appear to simulate gambling.
-
Consumer law changes – what business owners need to know
The Treasury Laws Amendment (More Competition, Better Prices) Act 2022 (Cth) (Act) amends various pieces of legislation to provide stronger competition and consumer protections. In particular, the Act bolsters the penalties applicable for offences relating to unfair practices and unfair contract terms under as contained within the Competition and Consumer Act 2010 (Cth) (CCA) and…
-
Is a proposed settlement fair and reasonable – Federal Court
Class action lawsuits commonly resolve in a settlement between the members of a class and the respondents to a claim. However, there are strict requirements to proposed settlements, including that they are ‘fair and reasonable’, which will be subject to judicial oversight.
