12.06.2025 | Polish competition authority
The Polish competition authority, known as UOKiK, has imposed a fine of over 28 million PLN on OLX Group due to misleading practices in its rating system. The authority found that the platform allowed individuals who had not made purchases to leave reviews, which distorted the reliability of the ratings and misled consumers.
UOKiK's investigation revealed that the criteria for leaving a review were not clearly communicated to users. Many consumers were unaware that even those who had not purchased anything could rate sellers, leading to complaints about unfair negative reviews. This lack of transparency raised concerns about the integrity of the ratings system, which is crucial for online shoppers.
Additionally, the algorithm used by OLX to calculate overall ratings was found to favor positive reviews disproportionately. Negative ratings were downplayed, and consumers could not verify the accuracy of the ratings they saw. This manipulation of ratings could mislead potential buyers about the quality of sellers on the platform.
UOKiK noted that these practices had been in place since November 2020 and continued until July 2024, during which time consumers were misled about the reliability of the ratings. Following the investigation, OLX has since implemented a new rating system that requires only verified buyers to leave reviews, thus addressing the concerns raised by the authority.
The fine imposed on OLX is not yet final, as the company has the right to appeal the decision. UOKiK is also investigating OLX for providing misleading information in response to inquiries about its practices.
© 2024 PolicyPulse. All rights reserved.
See something you like or don't like? Let us know!