Dec 27, 2023
What is feedback extortion in marketplaces?
This article will describe the meaning of feedback extortion in the context of online marketplaces and two-sided platforms. It will give a definition and some examples where possible.
Definition of feedback extortion
Feedback extortion is user behavior where a user makes a good review conditional on exorbitant demands or threatens to give a positive review only in exchange for one.
On many marketplaces, a good rating means access to further customers or services, which can lead to good feedback being used as leverage. For example, on ride-hailing apps, providers that go under a certain rating will be banned from the platform. Good reviews can be integral to their livelihood. For customers, a low rating can mean no longer having access to services through the platform, as providers will not accept your requests.
Most marketplaces prohibit feedback extortion and use a double-blind review process to enforce the rule. However, feedback extortion still remains a problem on marketplaces.
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