The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has welcomed Labor’s proposal to ban “price parity clauses” from online booking contracts that restrict accommodation outlets offering discounts or deals on their own websites.
Ms Carnell noted that in Australia, small businesses offering accommodation are not allowed to offer a lower room rate than the one listed on an online platform, even if they have empty rooms they need to fill.
The ASBFEO also noted that online booking platforms Booking.com and Expedia control up to 85 per cent of bookings, and they are taking commissions of up to 30 per cent, which it sees as a big hit to the bottom line of a small business.
“Addressing anti-competitive practices would level the playing field between small businesses and their multinational rivals and give consumers more choice. We are pleased Labor proposes to investigate the use of similar clauses across other platforms and industries,” Ms Carnell said.
“We are acutely aware of the challenges that restaurants experience with the costs of being on the UberEats platform. We also need to consider these types of contracts in light of the unfair contract terms legislation.”
The outcomes of the government’s review of unfair contract term protections for small business is due shortly. The ASBFEO hopes that they are further strengthened to protect small businesses from these practices.
