An Italian aerospace engineer and entrepreneur, Boris Tuzza, is raising concerns about potential unfair practices by Refurbed, an Austrian marketplace specializing in refurbished electronics. Through his company, the Italian Technological Company (ITC), Tuzza previously sold refurbished iPhones on Refurbed’s platform, benefiting from the rising demand for circular economy products. However, after facing difficulties with the platform, Tuzza has taken legal action to highlight what he claims are inconsistencies in Refurbed’s marketplace operations. We asked Refurbed to comments on these accusations.
Market growth and alleged exclusion from Refurbed platform
In 2019, Tuzza founded ITC to refurbish and sell Apple products, targeting a rapidly expanding European market for refurbished goods. Demand spiked during the COVID-19 pandemic, with ITC’s revenue jumping from € 150,000 in 2019 to over € 3 million by 2022. Tuzza invested nearly € 1 million in ITC’s growth, some of it through public subsidies.
The problems reportedly began as Tuzza noticed issues with Refurbed’s “buy box” system, a feature designed to display the “best offer” to consumers based on price, delivery, and quality metrics. According to Tuzza, even when ITC’s offer met these criteria, his products were often not displayed as the winning selection. He observed that his listings were sometimes removed or deprioritized, affecting his business’s visibility and leading to a steep decline in sales.
Reponses and regulatory complaints
Tuzza claimed he attempted to resolve the issue directly with Refurbed, but he claims to have received little response. He began documenting his findings, including what he describes as irregularities in how the platform’s algorithm favored certain vendors. He also alleges that Refurbed’s categorization and display of products did not consistently align with customer-friendly criteria.
In response, Tuzza filed complaints with market authorities across Europe, including in Italy, Austria, Germany, and the United Kingdom. He cited the EU’s Platform-to-Business (P-2-B) regulation, which mandates transparency and impartiality in platform business practices, arguing that Refurbed’s operations may be disadvantaging certain vendors unfairly. Italian consumer advocacy group Federconsumatori Milano has also been involved, considering a class action on behalf of affected customers, alleging that Refurbed’s practices might restrict consumer access to the best-priced used Apple iPhones.
Refurbed’s stance on allegations
“After thoroughly examining the allegations made, Italy’s Competition Authority (AGCM) has already dismissed the reports and found the accusations of ITC and Mr. Boris Tuzza to be unverified”, added the spokesperson of refurbed.
Refurbed also maintains that its ranking algorithm prioritizes factors like price, availability, delivery time, and seller performance. The platform has responded to some of Tuzza’s complaints, stating that they were dismissed by AGCM earlier in the year. Refurbed attributes Tuzza’s complaints to potential frustration over his removal from the platform, which they describe as a necessary action based on platform policy.
Refurbed asserts that the “buy box” ranking system allows consumers to view all offers on a given product by selecting the “All offers” option. The company adds that it has initiated legal proceedings to protect its reputation and upholds the uniformity of its ranking system to ensure fair competition.
Wider implications for marketplace transparency in Europe
This case brings renewed attention to the transparency of marketplace algorithms and their compliance with P-2-B regulation. European legislation aims to ensure that platforms do not unfairly manipulate vendor visibility or pricing, promoting fair competition and customer choice.
Market
Trade-in
Repair
Refurbishing
