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
-
What exactly is a term sheet?
Term sheets can be a powerful tool when negotiating a commercial agreement. Learn more about what they are, how they work, and when to use them.
-
Top 7 mistakes in commercial contracts
Negotiating commercial contracts can be tricky. Learn the top seven common mistakes to avoid costly errors and make sure your contracts are successful.
-
What are Services Agreements?
A services agreement is an essential tool for any business relationship. Learn more about the common clauses, liability, personnel obligations, and other considerations to ensure an effective agreement.
-
Shareholders’ right to information
When shareholders are restricted from accessing company information, it may be a sign of a dispute. The Corporations Act 2001 (Cth) provides mechanisms for minority shareholders to obtain relevant information, but they must prove they are acting in ‘good faith’ and ‘for a proper purpose’.
-
What are retention of title (ROT) clauses?
In commercial transactions involving the sale of goods, including intellectual property (IP), a seller should consider protecting themselves against the risk that a buyer may default on payment. In Queensland, one such protection method is provided by section 22 of the Sale of Goods Act 1896 (Qld) (SGA), which states that a seller may reserve…
-
Term Sheets & Share Subscription Agreements
This article outlines the key clauses and potential pitfalls of creating a Share Subscription Agreement. Learn what to include in the Term Sheet and how to avoid common mistakes.
-
Federal Court rules on unfair contract clauses
This case serves as a reminder to businesses and consumers to review their contracts and ensure they are compliant with the Australian Consumer Law (ACL). Find out more about the Federal Court ruling and what it means for businesses and consumers.
-
Value shifting in commercial transactions explained
Value shifting is an important tax consideration in Australia. This article outlines the general regime and exemptions, as well as Australian Taxation Office (ATO) resources for guidance.
-
Refund obligations for Australian businesses
In Australia, the main piece of legislation governing the supply of goods and services is the Competition and Consumer Act 2010 (Cth) (CCA), which incorporates the Australian Consumer Law (ACL) in Schedule 2. These obligations apply in addition to the terms and conditions by which a business trades. The CCA regulates the interaction between businesses…
