What are the risks of lack of regulation of the marketplace market?

Government interference in business is considered a problem. It’s not for nothing that back in 2019, the government launched a mechanism with the self-explanatory name “regulatory guillotine.” And the head of Sberbank, German Gref, who frightened journalists on the sidelines of the Eastern Economic Forum with the risks of proactive regulation of artificial intelligence, compared the countries that have taken such measures with “a desert in terms of attractiveness for companies and specialists.” Although in practice, the absence of rules does not always provide only advantages to a business. A recent example is the marketplace market, which is deprived of industry regulation.

Since the end of 2023, the Arbitration Court of St. Petersburg and the Leningrad Region has registered 25 claims from the entrepreneur, owner of the Garlyn household appliances brand Oleg Mashinistov, in which the defendants or third parties are Yandex or Ozon structures. The court rulings state that the claims are related to the protection of business reputation. And in a decision made in February on one of the disputes, it is specified that Oleg Mashinistov sought to recognize negative reviews about Garlyn equipment as discrediting business reputation and untrue. In comments cited in the court materials, users complain about the smell of the coffee maker: “The whole impression was ruined by the strong smell of plastic with a long-lasting chemical aftertaste. I have already cleaned the cappuccino maker several times, but this does not solve the problem.” The court found the information untrue and discrediting the business reputation of Oleg Mashinistov and the Garlyn brand.

Partner at Rustam Kurmaev and Partners Dmitry Gorbunov points out that in the dispute over reviews of the coffee maker there is no defendant, which means there is no one to challenge the court’s decision, but you can demand that the marketplace remove comments. In the struggle for business reputation, this path can hardly be called optimal. After all, if coffee makers continue to smell like plastic, buyers will write new negative reviews, which will have to be challenged again in court.

Representatives of hotel aggregators, whose business is also not separately regulated, say that their companies become defendants or third parties in claims from tourists demanding compensation due to the quality of hotel services. In one of these proceedings, the plaintiff pointed out the persistent smell of sewage in the rooms, poor food and cold water in the swimming pool. In this case, the court rejected the claim. But the solutions are different, they say in the market.

How much such disputes will complicate the work of large companies is a debatable question. But perhaps this will give businesses another reason to think: isn’t it better to determine their own status and responsibilities rather than face the risk of new claims from consumers and counterparties.