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An Australian think tank has criticised Australia’s consumer law system for being three decades behind the times.
The Consumer Policy Research Centre’s new report, The Digital Checkout, has noted that while Australians are purchasing more and more in online spaces, they’re still only receiving the same consumer protection as they were back in the 1990s.
Similarly – privacy laws haven’t kept pace as transactions trend more towards the online space.
While the digital marketplace offers greater choice, speed and access to unprecedented experiences and options for products and services, the report flagged how consumers in 2021 are “overwhelmed with information, have little control over how personal information is collected and used, and have fewer options for redress when things go wrong”.
Lauren Solomon is the chief executive officer of the Consumer Policy Research Centre and says consumer regulation has not kept pace with the evolving digital marketplace.
This has significant policy implications, she flagged, especially given that household consumption constitutes approximately 60 per cent of gross domestic product.
“It is in the national interest to ensure the right policy settings are in place for this significant component of Australia’s economic activity,” Ms Solomon stated.
While consumers in 2021 are provided with greater choice and convenience than they were back in 1991, the report conceded that “it can be at the cost of information overload, and a lack of transparency”.
“The online consumer experience is often curated with dark patterns, including algorithms and bundled consent, leaving little choice or control over how their data is being collected, shared and used,” Ms Solomon outlined.
Previous research from the think tank had discovered that 94 per cent of people are uncomfortable with how their personal information is collected and shared online, and the same proportion of people surveyed want the government to protect them against the collection and sharing of their personal information.
“Yet our consumer privacy protections haven’t been updated since the 1980s and are only now under review,” the CEO raised.
“We have Duran Duran-aged laws that were already outdated during the Nirvana years and are still with us as we go easy on Adele.”
The centre has proposed a number of reforms, including the prohibition of unfair practices and contract terms that conceal data practices in privacy policy terms and conditions, an overhaul of the Privacy Act, and the establishment of effective dispute resolution.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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