The Council of Small Business Organisations Australia (COSBOA) says small business impacts must be considered as Government develops its proposed "My Feed, My Way" changes to social media algorithms.
COSBOA CEO Skye Cappuccio said COSBOA recognises the objectives of improving online safety and giving Australians greater choice over their online experience, but the potential flow-on effects for small businesses need to be properly understood.
"For many small businesses, social media and digital platforms are how new customers find them. A café, retailer, tradesperson or service provider may not have a large marketing budget or in-house digital team. Their ability to appear in a customer's feed, search results or recommendations can be central to how they attract business," Ms Cappuccio said.
"Changes to algorithmic reach could have a significant impact on how small businesses are discovered by new customers. Before the final model is settled, we need to understand what it could mean for small business visibility, customer acquisition and ultimately revenue."
Ms Cappuccio said COSBOA would be examining the exposure draft and consulting with its members as it develops its formal response.
"Small business needs to be genuinely consulted throughout this process, including as the detailed mechanisms for how these choices will work are developed.
"We also need comprehensive modelling of the potential impacts on small businesses before the final model is locked in, including testing for unintended consequences for small business visibility and continuity.
"The broader Digital Duty of Care also needs to be implemented carefully. Many small businesses rely on digital platforms not only for marketing, but as a front door to their business.
"We need to avoid unintended consequences where platforms respond to new obligations through blunt enforcement measures that wrongly suspend, restrict or de-rank legitimate small businesses.
"If a small business is wrongly caught by platform enforcement, there must be a practical and accessible pathway to have the issue resolved quickly.
"Online safety is an important objective. The task now is to make sure this is delivered without inadvertently making it harder for Australia's small businesses to reach customers and operate online."
