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
-
Changes to monetary threshold for consumer contracts
Businesses have consumer guarantee protections to consider, with the threshold for contracts subject to Australian Consumer Law increasing from $40,000 to $100,000. Find out what changes you need to make to stay compliant with the law, as of 1 July 2021.
-
Just and equitable winding up – shareholder oppression
Discontinuing proceedings in the Federal Court of Australia can be costly, as the default position is that the discontinuing party pays the other party’s costs. However, the Court has discretion to award costs and may consider the parties’ conduct and reasons for discontinuance.
-
Force majeure clauses tested by pandemic
Explore how COVID-19 may affect contractual obligations through an in-depth look at the legal concept of force majeure. Learn about the elements, nuances, requirements, and insurance implications of this technical area of contract law.
-
Marketplace terms and conditions – legal issues
This article explores essential terms and considerations for building marketplace terms and conditions, including establishing the position of the platform operator, user accounts, payment options, intellectual property, disclaimers, liability, indemnities, and the Australian Consumer Law.
-
Standard form IT procurement contracts – legal issues
Do you know what to look for in an IT procurement agreement? Learn more about the Queensland government QITC framework and key areas to consider when drafting or negotiating an agreement to protect your company’s commercial value.
-
Director’s identification numbers to become a reality
On 12 June 2020, the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 introduced the requirement for all Australian company directors to have a “Director Identification Number” (DIN). The DIN will become a single identifier for each director across all of their office holdings with the true identity of each director is verified…
-
Electronic document execution by directors
The Federal Government has issued a ruling allowing companies to sign documents electronically until 6 November 2020. Find out more about how this ruling affects your business.
-
Arbitration clauses in building disputes
The QCAT decision of 4D Electrical Qld v Greyburn Pty Ltd [2020] QCAT 74 shows arbitration can be a more efficient alternative to Court/tribunal litigation. Courts uphold contractual obligations agreed to by parties, proving arbitration is a viable option.
-
What are sophisticated investors?
This article provides an overview of the requirements for a person to be a sophisticated investor under the Corporations Act 2001 (Cth) and the Corporations Regulations 2001 (Cth). It covers the definition of ‘person’, the Assets Test and Income Test, Australian Securities and Investments Commission (ASIC) guidance, and the complexities of self-managed super funds.
