The Telecommunications Industry Ombudsman issued a report on Thursday revealing it had received hundreds of complaints about digital platforms and services in the past two years and the number of reports were rising.
But the organisation is only empowered to resolve complaints about phone and internet carriers and has been forced to turn away consumers and business owners.
The study comes on the same day Meta said it would deactivate about 500,000 Instagram, Facebook and Threads accounts it deemed to be held by Australians under the age of 16 and one week before the government's Social Media Minimum Age law comes into effect for 10 digital platforms named by the eSafety Commissioner.
The ombudsman's report, called Digital Platforms Complaints Insights, revealed more than 1500 people had lodged complaints with the organisation about digital services since 2023 after failing to resolve issues directly with the companies.
More than one-in-three complaints (36 per cent) involved being blocked or banned from accessing accounts, including some without notice or due to hacking attempts, while about another third (34 per cent) involved unfair fees and charges.
The next major topic of complaints involved faulty services and products purchased from online retailers and providers, including goods, apps and streaming services.
In one instance, an accidental purchase involving a popular children's app cost a family more than $700 with no prospect of a refund.
The complaints indicated online complications were causing Australians significant distress and harm, ombudsman Cynthia Gebert said.
"When things go wrong online, the cost is profound - people and small businesses are losing time and money," she said.
"It's heartbreaking telling people that, unlike issues with telco providers, we don't have the power to help resolve their digital platform disputes."
Complaints lodged about digital services to the Telecommunications Industry Ombudsman increased by more than 28 per cent in 2024, the report showed, and rose by another 26 per cent in the year to June.
Social media age restrictions that would lock many Australians out of their accounts could magnify the problem, Ms Gebert said, and the federal government should expand the organisation's remit to deal with them.
"To support government reforms such as the under-16s social media ban and digital duty of care, it's more important than ever that people have appeal rights when digital platforms get things wrong," she said.
"We are calling for the Australian government to expand the (telecommunications ombudsman) to become the communications ombudsman."
A review of the Online Safety Act, published in February, also recommended the creation of a digital ombudsman scheme that "covers digital platforms and online search and app distribution services" to address the regulatory void.
The Australian Competition and Consumer Commission issued a similar recommendation for an ombudsman in its final Digital platform Services Inquiry report, as well as the introduction of dispute resolution standards.
18°C