Have you ever wondered how restaurant review sites calculate their ratings? You might be surprised to learn that many of these websites keep their scoring systems shrouded in secrecy. This opaque practice has recently come under fire, with one Korean barbecue chain taking a review site to court, demanding transparency in its algorithm.
The story begins with Tabelog, a popular Japanese restaurant review site, and Hanryumura Co. Ltd., the company behind the KollaBo Korean barbecue chain. In 2019, KollaBo noticed a significant drop in ratings across all of its restaurants on Tabelog. This drop resulted in a huge loss of customers, causing a serious dent in the chain’s revenue.
The Mystery Behind the Ratings
KollaBo, understandably frustrated, took legal action against Tabelog, claiming that the review site had unfairly manipulated its algorithm to lower their scores. They argued that this amounted to an abuse of power, a violation of Japan’s Anti-Monopoly Act.
Tabelog, initially reluctant to reveal its scoring method, maintained that disclosing the algorithm could be exploited and cause harm. However, the court, seeking a clear picture of the situation, requested an opinion from the Fair Trade Commission.
The Fair Trade Commission Speaks Up
The Fair Trade Commission sided with KollaBo, asserting that the act of giving restaurant scores is a form of “trade”. This means that Tabelog, as a platform that profits from its restaurant reviews, is subject to the Anti-Monopoly Act.
Faced with mounting pressure and the potential for legal repercussions, Tabelog eventually agreed to reveal some details of its algorithm to KollaBo. However, they requested restrictions on who could access this information, citing trade secrets.
Calls for Greater Transparency
Experts, like Daisuke Korenaga, a professor of Anti-Monopoly Law, argue that transparency in scoring systems is crucial for fairness and neutrality. Without open access to the algorithm, restaurants are left in the dark about how their ratings are calculated, making it difficult to improve their scores and attract customers.
The case highlights the crucial role that review sites play in shaping consumer choices. While reviews can help diners make informed decisions, the lack of transparency in the scoring process raises serious concerns about bias and potential manipulation.
Moving Towards a More Transparent Future
The Fair Trade Commission, recognizing the growing importance of online platforms in various industries, is currently developing regulations for “platformers” like Tabelog. The commission’s survey revealed that a large percentage of consumers rely on restaurant review scores, while many businesses feel uncertain about the scoring process and its fairness.
This case raises important questions about the future of restaurant review sites and the role they play in the food industry. As more people rely on online reviews for dining recommendations, it becomes increasingly crucial to ensure that these platforms operate fairly and transparently.
