One in three people's problems online were with an online retailer or marketplace. 29 per cent have experienced problems with social media platforms.
The most common issues people face online are account and access issues (56 per cent), fees and charges issues (54 per cent), and slow or no customer service (52 per cent).
The report reveals Australians are losing an estimated $497 million each year due to problems they face with digital services. More than half of people facing problems online report lower trust in digital services because of it.
Two in five Australians never lodge a complaint about the problems they experience with digital services, often because they think nothing will change. Two in three who do complain are left dissatisfied with the outcome.
Despite this growing national problem, and widespread reliance on digital services in everyday life, there is no external dispute resolution body such as an ombuds scheme to turn to when things go wrong online.
This research confirms strong public support for an independent body to help resolve disputes. Three in four people who have experienced problems with digital services want access to a free, independent complaint handling body to help. 83 per cent are open to the TIO's remit expanding to help with digital complaints alongside telco.
As stated by Ombudsman Cynthia Gebert
"This research confirms what we have been hearing from people and small businesses for a long time - digital and social media issues take time, cost money and create stress."
"People are asking for something simple: clear pathways to complain and access to human support when they need it. Right now, these basic expectations are not being met."
"The TIO already provides a free, independent service to resolve disputes and hold telco providers to account. This research shows there is a clear need to extend that model to digital services, so Australians can get help when it matters most."
"People rely on digital platforms to work, run small businesses and stay connected. Expectations rise with what's at risk when those services fail."
"The TIO is ready to take on this important work as the Communications Ombudsman. By strengthening consumer protections online, we can help improve accountability, lift standards and rebuild trust in digital services."
As stated by report author and CPRC Deputy CEO and Digital Policy Director Chandni Gupta
"When things go wrong online, Australians are too often left to fend for themselves, navigating complaint processes that are hard to access and navigate, and frequently fail to deliver meaningful outcomes."
"Too many people are getting stuck in a complaints loop - unable to reach a real person, passed between automated systems, and left without resolution or closure."
"This problem harms individuals, undermines trust in the digital economy and weakens the accountability needed to ensure markets work for people."