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The ombudsman has called for big tech platforms to provide more efficient support for SMEs following a significant surge in disputes.
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SME digital platform disputes up 86%: ASBFEO
16 October 2024
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Disputes between small businesses and big tech platform providers have increased by 86 per cent since the same time last year, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) revealed.
The small business advocate said digital platforms should be required to implement clear, appropriate and standardised procedures for SME dispute resolution.
Ombudsman Bruce Billson said SMEs were severely impacted by unresolved disputes.
“Digital platforms need to implement clear, appropriate and standardised procedures to enable a timely resolution for small business disputes,” Billson said.
“They need clear internal escalation points, promotion of external dispute resolution support and dedicated contacts for dispute resolution agencies like the ASBFEO so small businesses can have their dispute handled efficiently, hopefully resolved and resume operating their business sooner.”
According to ASBFEO, digital platforms transform the way small businesses connect with consumers and sell products.
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However, SMEs also experienced increased disputes and issues through the introduction of digital platforms.
Billson said the number of SMEs and family businesses that have suffered a business disruption due to digital platforms has more than doubled in the past two years.
“Digital platforms have fundamentally changed the way small businesses connect and sell to their customers and provide fantastic opportunities to reach and delight new customers,” he said.
“But when there is a problem, such as having your account shut down after being hacked, solving it can be a nightmare.”
“Big tech platform providers need to urgently lift their game and provide clear, appropriate and easily accessible help for small business- with a real person they can talk to.”
In the past three months, 73 per cent of disputes involved Meta-owned platforms Facebook and Instagram, according to the SME advocate.
Two-thirds of these cases involved accounts being hacked, while Uber accounted for 17 per cent of the caseload with one in four disputes not being paid.
Billson said he has urgently called on digital platforms to do better.
“The common thread we see is small business owners and those who are self-employed devastated by the sudden, unexpected suspension of their account and then having no clear avenue to resolve the problem,” Billson said.
“Small businesses tell us it can take many months to resolve a dispute and get back to business. Some have told us these delays have cost them many thousands of dollars.”
The body noted the SME owners who had contacted them for assistance were overwhelmed and stressed due to the compounding of existing pressures.
Dispute frustrations were amplified by the ever-changing fiscal environment and economic pressures and carried vulnerability aspects.
ASBFEO has multiple resources and guidelines for small businesses when faced with digital platform issues.
Digital platform disputes and hacks impact SMEs both financially and emotionally, Billson said.
“They lose customers and money if a credit card linked to these accounts is being used by the hacker or the hacker uses the account to access and harm other customers,” he said.
“Having someone else access and control their account is devastating for their business and their reputation. Some never recover.”
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