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OLX Faces Investigation Over Misleading Review Practices

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The President of the Polish competition authority has initiated proceedings against OLX Group due to allegations of misleading review practices and a biased rating algorithm.

11.12.2023 | Polish competition authority


The President of the Polish competition authority, Tomasz Chróstny, has launched an investigation into OLX Group, a leading online classifieds platform in Poland. The investigation stems from concerns regarding the transparency and accuracy of the review system used on the platform, which is frequented by millions of users each month.

Key allegations include the misleading use of the term 'buyers' to describe individuals who can leave reviews, which may include those who have only contacted sellers without making a purchase. This misrepresentation could lead consumers to believe that reviews are from verified purchasers, potentially skewing their purchasing decisions.

Additionally, the algorithm employed by OLX is said to assign greater weight to positive reviews, even those that fall below the midpoint of the rating scale. This practice raises questions about the integrity of the ratings displayed, as they may not accurately reflect the true experiences of users. Consumers are also unable to see the individual ratings that contribute to an overall score, further obscuring the transparency of the review process.

If the allegations are substantiated, OLX Group could face fines of up to 10% of its revenue, highlighting the importance of maintaining consumer trust in online platforms.

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