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
-
Electronic signing of documents no longer allowed for companies
The ability for companies to execute documents electronically (e-signing) is set to expire, but the Treasury Laws Amendment (2021 Measures No. 1) Bill 2021 could extend it. Find out how this could affect businesses and what the Senate’s decision could mean.
-
Company wound up under s461K for failing to achieve its objectives?
The NSW Supreme Court case of Gearhouse provides insight into the Court’s power to wind up a company under the Corporations Act 2001 (Cth). A combination of circumstances, including deadlock between shareholders, loss of confidence in management and an expired agreement, can lead to winding up.
-
Director resignations – effects from 18 February 2021
The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Phoenixing Act) introduced major changes to the Corporations Act 2001 (Cth) (Corporations Act), with implications for directors. Learn more about the timeline for director resignations and the potential liabilities of directors under the new law.
-
Explaining Australia’s Media Bargaining Code
The News Media Bargaining Code (NMBC) is quickly moving through Parliament and looks likely to become law. It requires digital platforms, such as Facebook and Google, to negotiate remuneration with News Companies for providing their media services. Non-compliance could result in hefty civil penalties.
-
Shareholder oppression – the early warning signs
This article explores the legal framework of shareholder oppression and identifies early warning signs to look out for when starting a new venture, such as entity type, relationship with advisors, exclusion from management, access to info and non-flexible negotiation.
-
Understanding deal fatigue in business transactions
Learn how to reduce deal fatigue in commercial transactions. Tips include increasing bargaining position, introducing lawyers and planning the deal. Get advice to help you make the most of your next commercial transaction.
-
Ending an indefinite contract
Terminating an Indefinite Contract can be complex. This article examines the issues of reasonable notice, compensation, commission, and case studies to help answer common questions.
-
What is a registered design – Australian law
Learn more about registering a design in Australia and the legal rights associated with it. Understand the criteria for successful registration, the legal owner of the design, and infringement proceedings.
-
The tort of passing off explained
The tort of “passing off” occurs where one trader (Defendant) has wrongly represented that its goods or services are related to those of another (Plaintiff) by imitating the latter’s “get-up”, or look and feel of their product or service.[1] A passing off action is designed to provide a remedy when this situation results in damage to the Plaintiff’s business reputation. It is usually pleaded as an alternative cause of action to misleading and deceptive conduct pursuant to the…
