ACCC finds 72% of consumers hit unfair marketplace practices

The Australian Competition and Consumer Commission released findings from a comprehensive consumer survey examining experiences across major online retail marketplaces, revealing that 72% of respondents encountered potentially unfair practices within a 12-month period. The survey formed part of the ACCC's Final Report of the Digital Platform Services Inquiry, published in March 2025.

According to Kate Reader, General Manager of the Digital Markets Branch at ACCC, the commission "surveyed over 3,000 Australians aged 14 and older to better understand their experiences using general online retail marketplaces, such as Amazon, eBay, Shein, Temu, and Kogan." The announcement was shared on March 31, 2025, through Reader's LinkedIn post detailing the survey methodology and key findings.

Summary

Who: Australian Competition and Consumer Commission (ACCC) conducted survey of over 3,000 Australians aged 14 and older, examining experiences on major online retail marketplaces including Amazon, eBay, Shein, Temu, and Kogan.

What: Survey revealed 72% of consumers encountered potentially unfair practices within 12 months, including hidden charges (21%), unwanted marketing emails (23%), forced subscription sign-ups (24%), and accidental paid subscriptions (10%).

When: Survey completed in December 2024 as part of Final Report published March 2025, with findings announced by Kate Reader on March 31, 2025.

Where: Australia-wide survey examining consumer experiences across general online retail marketplaces operating in Australian market, including both domestic and international platform operators.

Why: Survey conducted to better understand consumer experiences using online marketplaces as part of comprehensive Digital Platform Services Inquiry examining competition and consumer issues across digital platform markets over five-year investigation period.

The data reveals concerning patterns of consumer manipulation across Australia's digital marketplace landscape. Hidden charges emerged as a significant issue, with 21% of survey participants discovering fees or charges at checkout that sellers had not disclosed upfront. These undisclosed costs represent a substantial portion of problematic practices affecting online shoppers.

Marketing communication violations affected nearly a quarter of respondents. The survey found that 23% received marketing emails they never knowingly signed up for or felt deceived into receiving. Additionally, 24% were forced to sign up for marketing communications or paid subscriptions to complete purchases, indicating systematic pressure tactics employed by marketplace operators.

Subscription-related deception presented another area of concern. According to the survey data, 10% of respondents accidentally signed up for paid subscriptions due to the way options were worded. This finding highlights how interface design and language choices can manipulate consumer decision-making during online transactions.

The survey examined consumer experiences across multiple marketplace platforms that have gained prominence in Australia's e-commerce sector. Amazon, eBay, Shein, Temu, and Kogan represent the major platforms where Australian consumers conduct online retail transactions. These marketplaces facilitate billions of dollars in annual sales while connecting Australian consumers with both domestic and international suppliers.

Australian digital marketplace regulation has become increasingly important as consumer shopping patterns shift toward online platforms. The ACCC's Digital Platform Services Inquiry spans five years of investigation into digital platform markets, examining competition and consumer issues across search services, social media, app marketplaces, cloud computing, and generative artificial intelligence.

Previous ACCC analysis found that Amazon Australia's revenue grew 18% in calendar year 2023, with marketplace revenue increasing 22% to $1.567 billion and third-party seller services growing 79% to $569 million. New entrants Temu and Shein have also expanded their customer bases, with 3.8 million Australians purchasing from Temu and 2 million from Shein in the 12 months to August 2024.

The survey findings come amid broader concerns about marketplace practices globally. More than 50% of third-party suppliers on Amazon's US website are based in China, creating complex regulatory challenges for consumer protection authorities. The ACCC noted that many suppliers of online marketplaces are based overseas, complicating enforcement of Australian consumer law protections.

Consumer protection issues extend beyond hidden charges and subscription traps. The ACCC's analysis identifies concerns about product safety, with consumers at risk of purchasing unsafe goods when online marketplaces fail to monitor or address product safety issues. Fake reviews represent another significant problem, with 45% of respondents encountering reviews they knew or strongly suspected were fake at least half the time they used a marketplace.

The regulatory response reflects international trends in digital platform oversight. According to the Final Report, 91% of Australian consumers consider it either quite, very, or extremely important to have a specialized, independent, and external dispute resolution body to resolve disputes with general online retail marketplaces. This preference demonstrates consumer demand for stronger protection mechanisms in digital marketplace transactions.

Dispute resolution challenges compound consumer harm across marketplace platforms. The ACCC expressed concerns that some online marketplaces' dispute resolution policies contain terms that may confuse consumers or sellers or discourage them from seeking dispute resolution. Temu's terms of use for Australian users state that disputes will be governed by New York State laws and applicable federal US laws, while certain court disputes will be decided exclusively by a court in Singapore.

The marketplace competitive landscape continues to evolve with new entrants and business model innovations. Instagram Shopping, TikTok Shop features, and brick-and-mortar store expansions into online marketplaces represent emerging channels that may reshape consumer experiences. Big W launched an online marketplace called Big W Market in November 2023, while Bunnings operates Bunnings Marketplace for third-party supplier products.

Technical integration challenges affect marketplace functionality and consumer experience. Network effects and data collection provide competitive advantages for established platforms while creating barriers to entry for new competitors. The ACCC's previous analysis noted that these factors can confer competitive advantages and limit new entry, potentially leading to positions of dominance by existing participants.

Recent regulatory developments show persistent market concentration across digital platforms. Google maintains 94% market share in Australian search services, while marketplace competition remains more distributed. The ACCC concluded that no single general online retail marketplace currently holds a dominant position in Australia, though monitoring remains necessary due to scale economies and network effects.

The survey results inform ongoing policy development for digital platform regulation in Australia. The Government has announced plans to implement a new digital competition regime following ACCC recommendations. These reforms aim to address consumer harms identified across digital platform services, including subscription traps and manipulative online practices.

Enforcement mechanisms continue to evolve as regulators adapt to digital marketplace challenges. New legislation establishes the National Anti-Scam Centre within the ACCC and enacts the Scams Prevention Framework Act 2025. Enhanced penalties for unfair contract terms provisions took effect in November 2023, providing stronger tools for consumer protection enforcement.

The international context shows similar regulatory responses across multiple jurisdictions. The European Union's Digital Markets Act and ongoing investigations by competition authorities worldwide address market power concerns of major digital platforms. Australia's proposed digital competition regime reflects these international developments while addressing specific characteristics of the Australian market.

Industry response to regulatory scrutiny varies across marketplace operators. Some platforms have implemented voluntary measures to address consumer concerns, while others maintain existing practices pending regulatory requirements. The effectiveness of voluntary compliance measures remains under evaluation as part of ongoing ACCC monitoring activities.

Consumer education represents another component of marketplace protection strategies. Media literacy initiatives and online safety education programs aim to help consumers identify and avoid manipulative practices. However, the survey findings suggest that education alone may be insufficient to address systematic marketplace design issues that facilitate consumer harm.

The economic impact of marketplace practices extends beyond individual consumer transactions. Hidden charges, subscription traps, and other deceptive practices can distort market competition by creating advantages for platforms that employ manipulative tactics over those that maintain transparent pricing and clear terms.

Future monitoring will assess whether regulatory reforms effectively address identified consumer harms. The ACCC's Digital Platform Services Inquiry provides a framework for ongoing oversight of digital marketplace evolution. Continued data collection and analysis will inform policy adjustments as marketplace technologies and business models continue to develop.

Timeline

• 2020: Digital Platform Services Inquiry commences under ministerial direction
• 28 April 2022: ACCC releases fourth interim report focusing on general online retail marketplaces
• 11 November 2022: Fifth interim report recommends regulatory reforms
• November 2023: Enhanced penalties for unfair contract terms provisions take effect
• 2 December 2024: Government announces consultation on digital competition regime
• December 2024: ACCC completes consumer survey of over 3,000 Australians
• March 2025: ACCC releases Final Report of Digital Platform Services Inquiry