Australian businesses face algorithmic shutdowns and cyberattacks

The Australian Small Business and Family Enterprise Ombudsman has reported a significant rise in disputes involving digital platforms. Complaints regarding online shops being shut down by automated algorithms without human oversight have quadrupled, accounting for 38.3 per cent of all new cases in the June quarter.

Small businesses have reported losing access to long-standing accounts on platforms like Facebook and Instagram, which can freeze customer data and product information. In one instance, Meta acknowledged that several Melbourne and Sydney venues had been flagged in error. Additionally, inventor Jack Nekhala has lodged a complaint with the Australian Competition and Consumer Commission against Amazon.

Separately, furniture retailer Nick Scali is managing the aftermath of a cyberattack that forced its systems offline. While the company stated there is no evidence of unauthorized access to customer data, the security incident has slowed response times and disrupted order processing. The matter has been referred to the Federal Police and the Australian Cyber Security Centre.