Abstract
No market can survive without trust. The same applies to transactions on online platforms. However, because of the nature of online platforms, the existing mechanism for establishing trust is hardly effective. As a result, online platforms use a kind of review(feedback) system to establish trust. In other words, the review and rating system is designed to function as the basis for and purpose of their trustworthiness. Therefore, their regulatory environment should also warrant systematic trust, whose existence becomes the basis for confidence in the necessity of the functions of the regulatory regime. In this paper, the principles of ISO 20488:2018 are introduced and six elements for the regulation are presented: Tramsparency and consumer information, Submission of reviews, Moderation of reviews, Publication of reviews, Consolidated Ratings, Right to reply. Consumer reviews may reduce the asymmetry of information among the market participants by providing information concerning the actions of the platform users in trading. Furthermore the review and rating system could be a means of controlling the market indirectly by performing the functions of information transmission, verification and monitoring. Therefore, for such a system to fuction properly based on reliability, the factors related to its reasonable regulation should be examined carefully.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
