Consumer watchdog bares teeth at dodgy digital sellers

The Australian Competition and Consumer Commission (ACCC) is determined to combat businesses utilizing deceptive and manipulative practices in the digital sphere, according to its chief Luke Woodward. As consumer journeys increasingly occur at rapid speeds and vast scales online, the race to the bottom has intensified, Woodward warned on Tuesday.

He explained that firms now compete not by providing superior products, services, or prices, but by manipulating consumer choices and obscuring information. This form of conduct, once limited to individual customers, can now be directed at millions through online platforms. At the Mallesons Digital Future Summit, the watchdog chief outlined its digital enforcement agenda, prioritizing action against harmful practices, particularly those causing material consumer harm.

However, the ACCC also aims to foster broader deterrence by focusing on senior leadership accountability, compliance practices, systems, and culture. The agency is targeting deceptive and manipulative online sales, subscription and service practices, misrepresentation of consumer guarantees, and the sale of unsafe products. Recent cases have involved both large and small online traders, as well as digital and social media platforms.

The ACCC has sought outcomes such as halting conduct, consumer redress, and significant court penalties to promote general deterrence. Digital platforms have become a means for overseas traders with no Australian presence to sell unsafe products without direct accountability. New restrictions on unfair trading practices under Australian Consumer Law will take effect next July, enhancing the ACCC's ability to address harmful conduct.

The new regime includes a general prohibition on unfair trading practices, mandatory disclosure requirements for drip pricing, and new obligations for subscription contracts, with significant penalties for non-compliance. Product safety is a top priority for the ACCC, which is collaborating with platforms like the Australian Product Safety Pledge. The rapid spread of unsafe products online is unprecedented, Woodward stated.