ACCC finds 72% of consumers hit unfair marketplace practices

The Australian Competitors and Client Fee launched findings from a complete client survey analyzing experiences throughout main on-line retail marketplaces, revealing that 72% of respondents encountered doubtlessly unfair practices inside a 12-month interval. The survey shaped a part of the ACCC’s Closing Report of the Digital Platform Companies Inquiry, revealed in March 2025.

Based on Kate Reader, Normal Supervisor of the Digital Markets Department at ACCC, the fee “surveyed over 3,000 Australians aged 14 and older to raised perceive their experiences utilizing common on-line retail marketplaces, comparable to Amazon, eBay, Shein, Temu, and Kogan.” The announcement was shared on March 31, 2025, by means of Reader’s LinkedIn put up detailing the survey methodology and key findings.

Abstract

Who: Australian Competitors and Client Fee (ACCC) performed survey of over 3,000 Australians aged 14 and older, analyzing experiences on main on-line retail marketplaces together with Amazon, eBay, Shein, Temu, and Kogan.

What: Survey revealed 72% of customers encountered doubtlessly unfair practices inside 12 months, together with hidden costs (21%), undesirable advertising and marketing emails (23%), compelled subscription sign-ups (24%), and unintentional paid subscriptions (10%).

When: Survey accomplished in December 2024 as a part of Closing Report revealed March 2025, with findings introduced by Kate Reader on March 31, 2025.

The place: Australia-wide survey analyzing client experiences throughout common on-line retail marketplaces working in Australian market, together with each home and worldwide platform operators.

Why: Survey performed to raised perceive client experiences utilizing on-line marketplaces as a part of complete Digital Platform Companies Inquiry analyzing competitors and client points throughout digital platform markets over five-year investigation interval.

The info reveals regarding patterns of client manipulation throughout Australia’s digital market panorama. Hidden costs emerged as a big difficulty, with 21% of survey members discovering charges or costs at checkout that sellers had not disclosed upfront. These undisclosed prices signify a considerable portion of problematic practices affecting web shoppers.

Advertising communication violations affected practically 1 / 4 of respondents. The survey discovered that 23% acquired advertising and marketing emails they by no means knowingly signed up for or felt deceived into receiving. Moreover, 24% had been compelled to join advertising and marketing communications or paid subscriptions to finish purchases, indicating systematic strain ways employed by market operators.

Subscription-related deception introduced one other space of concern. Based on the survey information, 10% of respondents by accident signed up for paid subscriptions because of the manner choices had been worded. This discovering highlights how interface design and language decisions can manipulate client decision-making throughout on-line transactions.

The survey examined client experiences throughout a number of market platforms which have gained prominence in Australia’s e-commerce sector. Amazon, eBay, Shein, Temu, and Kogan signify the most important platforms the place Australian customers conduct on-line retail transactions. These marketplaces facilitate billions of {dollars} in annual gross sales whereas connecting Australian customers with each home and worldwide suppliers.

Australian digital marketplace regulation has turn into more and more necessary as client procuring patterns shift towards on-line platforms. The ACCC’s Digital Platform Companies Inquiry spans 5 years of investigation into digital platform markets, analyzing competitors and client points throughout search companies, social media, app marketplaces, cloud computing, and generative synthetic intelligence.

Earlier ACCC evaluation discovered that Amazon Australia’s income grew 18% in calendar yr 2023, with market income rising 22% to $1.567 billion and third-party vendor companies rising 79% to $569 million. New entrants Temu and Shein have additionally expanded their buyer bases, with 3.8 million Australians buying from Temu and a couple of million from Shein within the 12 months to August 2024.

The survey findings come amid broader considerations about market practices globally. Greater than 50% of third-party suppliers on Amazon’s US web site are primarily based in China, creating advanced regulatory challenges for client safety authorities. The ACCC famous that many suppliers of on-line marketplaces are primarily based abroad, complicating enforcement of Australian client legislation protections.

Client safety points prolong past hidden costs and subscription traps. The ACCC’s evaluation identifies considerations about product security, with customers susceptible to buying unsafe items when on-line marketplaces fail to watch or handle product questions of safety. Faux evaluations signify one other vital downside, with 45% of respondents encountering evaluations they knew or strongly suspected had been faux a minimum of half the time they used a market.

The regulatory response displays worldwide tendencies in digital platform oversight. Based on the Closing Report, 91% of Australian customers think about it both fairly, very, or extraordinarily necessary to have a specialised, impartial, and exterior dispute decision physique to resolve disputes with common on-line retail marketplaces. This choice demonstrates client demand for stronger safety mechanisms in digital market transactions.

Dispute decision challenges compound client hurt throughout market platforms. The ACCC expressed considerations that some on-line marketplaces’ dispute decision insurance policies include phrases which will confuse customers or sellers or discourage them from searching for dispute decision. Temu’s phrases of use for Australian customers state that disputes will probably be ruled by New York State legal guidelines and relevant federal US legal guidelines, whereas sure courtroom disputes will probably be determined solely by a courtroom in Singapore.

{The marketplace} aggressive panorama continues to evolve with new entrants and enterprise mannequin improvements. Instagram Buying, TikTok Store options, and brick-and-mortar retailer expansions into on-line marketplaces signify rising channels which will reshape client experiences. Large W launched a web-based market referred to as Large W Market in November 2023, whereas Bunnings operates Bunnings Market for third-party provider merchandise.

Technical integration challenges have an effect on market performance and client expertise. Community results and information assortment present aggressive benefits for established platforms whereas creating boundaries to entry for brand new rivals. The ACCC’s earlier evaluation famous that these components can confer aggressive benefits and restrict new entry, doubtlessly resulting in positions of dominance by current members.

Recent regulatory developments present persistent market focus throughout digital platforms. Google maintains 94% market share in Australian search companies, whereas market competitors stays extra distributed. The ACCC concluded that no single common on-line retail market at present holds a dominant place in Australia, although monitoring stays crucial on account of scale economies and community results.

The survey outcomes inform ongoing coverage improvement for digital platform regulation in Australia. The Authorities has introduced plans to implement a brand new digital competitors regime following ACCC suggestions. These reforms purpose to handle client harms recognized throughout digital platform companies, together with subscription traps and manipulative on-line practices.

Enforcement mechanisms proceed to evolve as regulators adapt to digital market challenges. New laws establishes the Nationwide Anti-Rip-off Centre inside the ACCC and enacts the Scams Prevention Framework Act 2025. Enhanced penalties for unfair contract phrases provisions took impact in November 2023, offering stronger instruments for client safety enforcement.

The worldwide context exhibits comparable regulatory responses throughout a number of jurisdictions. The European Union’s Digital Markets Act and ongoing investigations by competitors authorities worldwide handle market energy considerations of main digital platforms. Australia’s proposed digital competitors regime displays these worldwide developments whereas addressing particular traits of the Australian market.

Business response to regulatory scrutiny varies throughout market operators. Some platforms have applied voluntary measures to handle client considerations, whereas others preserve current practices pending regulatory necessities. The effectiveness of voluntary compliance measures stays beneath analysis as a part of ongoing ACCC monitoring actions.

Client training represents one other part of market safety methods. Media literacy initiatives and on-line security education schemes purpose to assist customers establish and keep away from manipulative practices. Nevertheless, the survey findings counsel that training alone could also be inadequate to handle systematic market design points that facilitate client hurt.

The financial affect of market practices extends past particular person client transactions. Hidden costs, subscription traps, and different misleading practices can distort market competitors by creating benefits for platforms that make use of manipulative ways over those who preserve clear pricing and clear phrases.

Future monitoring will assess whether or not regulatory reforms successfully handle recognized client harms. The ACCC’s Digital Platform Companies Inquiry gives a framework for ongoing oversight of digital market evolution. Continued information assortment and evaluation will inform coverage changes as market applied sciences and enterprise fashions proceed to develop.

Timeline

• 2020: Digital Platform Companies Inquiry commences beneath ministerial route
• 28 April 2022: ACCC releases fourth interim report specializing in common on-line retail marketplaces
• 11 November 2022: Fifth interim report recommends regulatory reforms
• November 2023: Enhanced penalties for unfair contract phrases provisions take impact
• 2 December 2024: Authorities broadcasts session on digital competitors regime
• December 2024: ACCC completes client survey of over 3,000 Australians
• March 2025: ACCC releases Closing Report of Digital Platform Companies Inquiry