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OLX Group fined by UOKiK for misleading rating system
The Office of Competition and Consumer Protection has levied a fine exceeding PLN 28 million on OLX Group due to a deceptive rating system. According to the announcement, users of the olx.pl platform frequently did not recognize that ratings could be issued by individuals who had not made a purchase prior.
The Office of Competition and Consumer Protection (UOKiK) clarified in a statement on Thursday that those permitted to leave feedback on the site were labeled as „buyers,” which implied that completing a purchase was the primary condition for providing an evaluation of the seller. „However, this was not the reality, and the issues associated with the rating system on OLX.pl were highlighted by reports from users,” the office remarked.
The President of the Office of Competition and Consumer Protection, Tomasz Chróstny, investigated who and when could submit an opinion on the OLX.pl platform, what algorithm the company employed to compute the final user ratings, and how it conveyed the applicable rules on the platform.
UOKiK stated that when it is unclear that individuals who have not made purchases can rate transactions, and those who have made purchases do not always have the chance to leave a review, these constitute unfair market practices. „When you add an algorithm that 'significantly distorts’ the original character of the rating, particularly a negative one, it creates a situation that infringes on the collective interests of consumers,” the Office assessed.
The OLX platform was deceptive
Tomasz Chróstny, as cited in the announcement, pointed out that users of OLX.pl frequently did not understand that a rating could be assigned by someone who had not made a purchase, or even by someone with whom they had no interaction. He mentioned that the platform permitted opinions based on „transaction experience.”
– Individuals who merely inquired about the product or provided contact information with the listing could also leave ratings. This could mislead consumers using the portal and compromise their interests – Chróstny stated.
The Office highlighted that consumers could not ascertain whether the ratings given were reflective of the opinions shared by the evaluators. „For instance, OLX.pl users were unaware that the rating 'Not bad. Most buyers are fairly satisfied with this seller’ was assigned, among others, to sellers who had more negative than positive ratings. Due to the mechanisms in place, instead of the rating 'I do not recommend,’ consumers could encounter the rating 'not bad (…)’, instead of the rating 'not bad (…)’, the rating 'good’, and instead of the rating 'good’, the rating 'excellent’,” the Office reported.
Fines exceeding PLN 28 million
For the misleading rating system on the OLX.pl platform, the President of the Office of Competition and Consumer Protection imposed a penalty of PLN 28 million 420 thousand 869 on the OLX Group.
„The decision is not conclusive, and the company has the right to appeal to the Court of Competition and Consumer Protection,” he noted. He added that once the decision becomes final, the company will communicate about it on the OLX.pl website and its social media channels.
As emphasized by UOKiK, the company utilized the criticized practices from November 2020 to July 31, 2024. „For over 3.5 years, OLX users were misled and their interests were compromised. Only after this period did the company replace the mechanisms with a new rating system that resolves the issues raised by the office,” he informed.
He also pointed out that currently, the overall seller rating is determined based on the arithmetic average of all partial ratings accessible to consumers. These ratings are derived from the number of stars awarded (ranging from 1 to 5) and tags. „Crucially, they can only be given by individuals who purchased and received the item via OLX shipment,” UOKiK stressed.
Another ruling regarding OLX
He also emphasized that this is not the first ruling from the President of the Office directed at the OLX Group. Last year, the President of the UOKiK mandated the company to amend its practices related to purchases with a protection package, provide information about the option to bypass the „OLX shipment” and service fee, and include additional charges in the sorting results from the least expensive offers.
The Office announced that the President of the UOKiK is also pursuing proceedings against the entrepreneur to impose a fine for the misleading information the company provided in response to requests for clarification.
OLX Group responds to the ruling
The OLX Group, in a statement sent to the business editorial team of tvn24.pl, confirmed receipt of the decision from the President of the Office of Competition and Consumer Protection concerning the user rating system on olx.pl, which was terminated in 2024.
„The welfare of all our customers is a vital aspect of the OLX Group’s operations, which is why the company acknowledges the UOKiK’s
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