The Telecommunications Industry Ombudsman (TIO) has raised concerns over inadequate consumer protections following a series of Facebook and Instagram account lockouts. Many users, including small business owners, found themselves without access to their accounts, facing significant disruptions. Reports indicate that AI bots incorrectly flagged numerous users for violating Community Standards, effectively cutting small enterprises off from their customers and essential marketing channels.
These account lockouts pose a considerable risk to small businesses, potentially leading to severe financial and reputational harm. The TIO has received numerous complaints regarding digital platform issues, yet these fall outside its current jurisdiction. In 2023 and 2024, more than 500 consumers and small businesses reached out to the TIO regarding problems related to digital platforms. Alarmingly, over 60 percent of those complaints pertained to access and account issues, with more than 70 percent specifically tied to platforms owned by Meta and Alphabet.
The human cost of these digital disruptions extends beyond financial implications. Users have reported losing years of personal data, including photos, videos, and sensitive information, when their accounts were hacked or blocked. Many individuals have expressed growing frustration, feeling abandoned without a reliable support system when encountering such issues. According to a survey conducted by the Australian Competition and Consumer Commission (ACCC), 82 percent of consumers believe an independent external dispute resolution (EDR) service is necessary for resolving complaints related to digital platforms.
In response to these challenges, the TIO, alongside the ACCC and the Independent Review into the Online Safety Act, is advocating for the establishment of a dedicated digital platforms ombudsman. This proposed role would ensure a fair complaints process that operates independently of the social media companies involved.
Freyja McCarthy, Executive General Manager of Legal, Policy and Regulatory Affairs at the TIO, emphasized the urgency of this issue. “Consumers are frustrated because they are hitting AI brick walls when they need help with their social media accounts. They are turning to the media for help because they have nowhere else to go,” she stated. McCarthy highlighted that many consumers and small businesses are falling through the cracks and unable to achieve fair outcomes when the internal dispute resolution mechanisms provided by social media companies fail.
The TIO argues that establishing an ombudsman would play a crucial role in enhancing trust and confidence in the digital economy. It would also provide individual redress for consumers when issues arise. With over 32 years of experience, the TIO claims it is well-equipped to implement a scalable, consumer-focused EDR scheme tailored to the needs of a modern communications landscape.
As digital platforms continue to evolve, the call for stronger consumer protections is increasingly vital. The TIO’s advocacy reflects a growing recognition that users deserve reliable support and resolution pathways when facing challenges on these platforms.
