Australia’s consumer watchdog has started to scrutinise product rankings on online marketplaces such as Amazon, eBay and Kogan for potential unfair competition practices.
After imposing tens of millions of dollars in penalties on hotel booking site Trivago and ride-sharing and food delivery mobile app Uber for misleading customers, the Australian Competition and Consumer Commission (ACCC) has switched its target to the most popular e-commerce websites in the country.
The federal government agency is contemplating the need for new regulations for online marketplaces as it is increasingly concerned about the loopholes in these platforms’ algorithms.
ACCC chair Gina Cass-Gottlieb said that although online marketplaces made it more convenient for buyers and sellers to conduct transactions, consumers and third-party sellers who listed their products on those platforms might be adversely affected by the way algorithms ranked products.
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