Approximately 40% of significant online shopping portals in South Korea utilize proprietary algorithms to order product reviews, but the metrics behind these rankings are not publicly disclosed. This lack of transparency has caused some concerns about consumer trust, as per a recent study by the Seoul Metropolitan Government.
The Seoul Electronic Commerce Center’s latest survey, published on Friday, revealed that 66% (33 out of 50) of the country’s top online retail platforms arrange customer feedback using algorithm-based rankings. These kinds of rankings are often labeled as “most popular” or “best”. However, 36% (18 out of 50) of these platforms do not provide any explanation about how these algorithms work.
The systems used for review rankings can vary across different platforms, but they often prioritize high-star ratings and positive comments. Only a handful of platforms allow visibility for critical yet constructive reviews or let users sort reviews based on their valuable positives and negatives.
While most platforms offer basic filtering options like “photo/video reviews” or “newest first”, more sophisticated controls are a rarity. Only a single platform allowed users to sort by “most commented”, while merely four platforms provided options to exclude reviews from promotional testers.
In the report, the city stated, “In online shopping, where consumers cannot inspect the product in person, reviews are a vital factor in the decision-making process. Overemphasis on positive reviews undermines trust and limits informed consumer choice.”
International platforms such as Costco, Rakuten, Amazon and Sephora have implemented more transparent and user-friendly review systems. For instance, Costco and Rakuten highlight one positive and one critical review deemed most helpful, while Sephora marks incentivised reviews and enables users to filter them out completely. Amazon provides tools to highlight both positive and negative reviews that other consumers have found useful.
Seoul officials are planning to propose regulatory changes that would require online retailers to reveal their review-sorting algorithms to ensure better oversight.
Kim Myung-sun, director of Seoul’s Fair Economy Division, commented, “A balanced review policy aids consumers in making quicker decisions and reduces unnecessary returns and disputes. We will continue to advocate for policies that protect consumer rights.”
What percentage of South Korean online shopping platforms use proprietary algorithms for ranking product reviews?
Approximately 40% of major online shopping platforms in South Korea employ proprietary algorithms to rank product reviews.
Why is there a concern about the use of algorithm-based rankings?
The concern arises from the fact that the criteria behind these algorithm-based rankings are not disclosed to the public, which raises issues about consumer trust and transparency.
What do Seoul officials plan in response to these findings?
Seoul officials plan to propose regulatory changes requiring online retailers to disclose their review-sorting algorithms, which aims to strengthen oversight in the online retail sector.
