The Telecommunications Industry Ombudsman (TIO) is calling for stronger consumer protections after recent Facebook and Instagram account lockouts left people stranded with no clear path to resolution.
It was reported AI bots incorrectly flagged users for Community Standards breaches, cutting off small businesses from access to customers and critical marketing channels. This leaves small businesses at particular risk of devastating financial and reputational losses.
The harms from account lockouts and other digital platform issues are regularly reported to the TIO, despite these complaints being outside its current jurisdiction.
In 2023 and 2024, over 500 consumers and small businesses contacted the TIO about digital platforms.
Over 60 per cent of consumers have reported issues related to access and account complaints, and over 70 per cent were linked to Meta and Alphabet-owned digital platforms.
Beyond economic costs, some social media users who contacted the TIO after accounts were blocked or hacked, also reported losing access to years of photos and videos, sensitive personal and financial information, and correspondence with friends and family.
Digital platform users are growing increasingly frustrated by having nowhere to turn when things go wrong. 82 per cent of consumers surveyed by the ACCC believe there should be an independent external dispute resolution (EDR) service to help people resolve their digital platform complaints.
The TIO joins the ACCC and the Independent Review into the Online Safety Act in calling for a digital platforms ombudsman to provide a fair complaints process that's independent of the social media companies.
As stated by Freyja McCarthy, Executive General Manager Legal, Policy and Regulatory Affairs:
"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.
"The TIO already hears from consumers and small businesses falling through the cracks. They are unable to get fair outcomes when internal dispute resolution offered by social media companies falls short.
"We need an Ombudsman to play a vital role in increasing trust and confidence in the digital economy and providing individual redress to consumers when things go wrong.
"With 32 years of experience, trusted processes and a skilled team, the TIO is prepared to deliver a scalable, consumer-focused EDR scheme for digital platforms that reflects the expectations of a modern communications ombudsman."
