The analysis of consumer product and service rating systems
highlights the growing influence of these systems on consumer choices and
business practices. While these systems are not yet widely adopted or
officially recognized in Romania’s legislative framework, they are becoming a
common practice, particularly in e-commerce and the FMCG (Fast-Moving Consumer
Goods) sector.
The French Competition Authority (ACF) has launched an
investigation into these systems in 2024, which has spurred further attention
from other European competition authorities. The investigation culminated in
the publication of Opinion 25-A-01 in January 2025, which identifies both the
benefits and the potential competitive risks associated with the adoption of
rating systems. These risks include issues in both the development and
implementation stages of rating systems.
Risks in the Development Stage:
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Choosing
Evaluation Criteria: A key concern is the proper and transparent
selection of evaluation criteria and their weighting. Misleading or unfair
ratings can occur if these criteria are chosen improperly, as seen in the
case of the Nutri-Score system in Romania, which was removed from the
market in 2022.
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Collaborative
Development by Competitors: There is a risk when competitors
collaborate on creating rating systems, especially when products within
the same market receive unjustifiably similar ratings. Such practices
could skew results to favor certain companies.
Risks in the Implementation Stage:
-
Abuse
of Dominant Market Position: The refusal of a dominant player to
provide access to essential databases could be seen as an abuse of power,
particularly if access is critical for developing or implementing rating
systems.
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Unfair
Competition Practices: The French Competition Authority raised
concerns about the possibility of rating systems being used to unfairly
harm products by awarding them unfavorable ratings, particularly when
these ratings are based on subjective or unverified criteria.
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Selective
Display of Ratings: Some businesses may display only favorable ratings
for their products, leaving out those with lower scores. The algorithms
used by rating systems must prevent collusion between competitors to avoid
manipulating which ratings are visible.
-
Imposition
of Rating Systems: In cases where dominant players impose rating
systems on their partners, there could be competitive risks, especially if
the rating system lacks transparency or fair evaluation methods.
The risks are more pronounced in sectors with numerous
rating systems, such as DIY product markets, where suppliers may have to comply
with multiple, potentially conflicting rating standards, leading to increased
costs.