There are calls for greater oversight and transparency after the corporate regulator accidentally blocked more than 1,000 websites.
Yesterday it was revealed the Australian Securities and Investment Commission (ASIC) was responsible for blocking the websites in a bungled attempt to stop just one that has been operating to defraud people.
ASIC was using what is known as a Section 313 request under the Telecommunications Act.
It is supposed to be used by law enforcement agencies like the Australian Federal Police to stop access to illegal websites.
The bungled blocking of sites has revealed that Government agencies are now seeing the 15-year-old Section 313 as a way to filter the net.
It has reopened debate about how legal or illegal information is blocked or censored online.
Jasmine-Kim Westendorf runs the Melbourne Free University website, which was accidentally blocked.
"We never thought the block was directed at us, but the fact there was no recourse available to us, there was no-one who would give us answers, there was no way we could challenge the decision that had been made by this mysterious Australian authority was pretty concerning," she said.
"There are some pretty big implications from this about how government agencies might use a similar power in the future.
"The fact that we live in a democracy but we were unable to get any information about how the Government was exercising its authority in this case was pretty alarming."
Many are now concerned that the use of Section 313s could be worse than Labor's mandatory internet web filtering policy, which was dumped last year.
There is concern that any state or federal government body can now effectively censor the internet without any oversight or due process.