Combating Review Blackmail on E-Commerce Platforms

Recognizing the impact of online reviews on sellers’ earnings, consumers engage in “review blackmail” by posting negative reviews and demanding a ransom for their removal. We conduct a field study and a laboratory experiment to examine whether, how, and when sellers’ exposure of such blackmail in their responses affects consumer perceptions and behaviors on e-commerce platforms. We find that exposing blackmail enhances consumers’ support for removing such reviews and improves their attitudes toward sellers by reducing perceived seller responsibility and increasing perceived sympathy. However, these effects are context-dependent. The effects of blackmail exposure on consumer perceived seller responsibility and sympathy diminish when a third party, such as a logistics provider, is involved in the seller-reviewer dispute. Sellers including detailed explanations in their responses can further weaken the diminishing effects of third-party involvement. Our findings offer implications for sellers in managing consumer reviews and for platforms in developing dispute resolution mechanisms.