Definition and significance of “Ranking”
The term ranking generally refers to the arrangement, evaluation, or assignment of positions within an ordered list. In digital and legal contexts, ranking in particular describes the placement of content, individuals, companies, or products according to certain, sometimes algorithmically determined, criteria. In the context of law, ranking is of considerable relevance especially in competition, data protection, contract, as well as media and internet law.
Legal aspects of ranking
Competition law considerations
Law against Unfair Competition and potential for misleading conduct
Rankings can be considered a commercial practice within the meaning of the Act Against Unfair Competition (UWG) if they influence the market behavior of companies. A key competition law issue concerns the transparency and traceability of the criteria by which rankings are generated. According to Section 5 UWG, rankings may not contain misleading information. For example, if it is suggested that an objective evaluation is provided while the ranking has actually been manipulated by targeted payments (keyword: paid listings or covert advertising), this constitutes deception of consumers.
Covert advertising and disclosure obligations
If paid placements or optimized positions in rankings are not disclosed as such, this may be considered covert advertising. Service providers are obligated to clearly label commercial content (§ 5a para. 6 UWG; § 6 TMG). Violations may lead to legal warnings and claims for injunctive relief under competition law.
Implications under data protection law
Processing of personal data
If personal data is processed for rankings—for example, in review platforms, search engines, or comparison portals—the provisions of the General Data Protection Regulation (GDPR) apply. According to Articles 5 and 6 GDPR, the processing of personal data is permissible only under certain conditions. In particular, a legal basis must be identified, and transparent information pursuant to Article 13 GDPR must be provided.
Right of access, deletion, and rectification
Affected individuals are entitled to obtain information about the data stored about them and its processing (Art. 15 GDPR), to rectification (Art. 16 GDPR), and to deletion (Art. 17 GDPR) if their data is unlawfully used for the creation of rankings or if displaying their information in a specific context is impermissible. This is particularly problematic in the case of review and ranking platforms on the internet, where personal rights could be affected.
Contractual regulations
Agreements between ranking providers and users
Relationships between ranking providers (e.g., platform operators) and the parties being listed (e.g., companies, service providers) are regularly governed by terms of use, contracts, or participation conditions. Paid placements or the influencing of rankings is permissible under law as long as transparency, non-discrimination, and compliance with statutory requirements are maintained.
Review of general terms and transparency of clauses
Contract clauses regarding paid placements, evaluation procedures, or deletion rules are subject to content control under §§ 305 ff. BGB. Unclear or surprising provisions are invalid. Providers are obliged to clearly and openly explain how their ranking system works and what factors may influence it (e.g., payments, special services).
Specific aspects in internet law
Platform regulation
With the entry into force of the Digital Services Act (DSA) at the European level, operators of online platforms that display rankings or order search results are subject to even greater transparency requirements. According to Art. 27 DSA, platform operators must disclose the fundamental ranking criteria, especially if they influence the presentation of search results. Indicating a paid placement is also mandatory.
Focus on search engine rankings
Search engine rankings are a central topic in numerous court cases. Essential legal issues include the traceability of algorithms, the possibility to intervene in results (“manipulation”), and the right to removal of unwanted search results (“right to be forgotten”).
Personal and business rights
Protection against negative evaluation and discrimination
Negative rankings or downgraded placements can have adverse effects on personal rights (Art. 2 para. 1 in conjunction with Art. 1 para. 1 GG), on general corporate rights of personality, as well as on the right to an established and operational business (Art. 12 GG, § 823 para. 1 BGB). False or defamatory rankings can trigger claims for injunction and damages.
Freedom of expression and its limits
As a general rule, rankings and reviews are protected by the right to freedom of expression (Art. 5 para. 1 GG). The distinction between legitimate opinion and impermissible abusive criticism or false factual claims must be assessed on a case-by-case basis according to judicial rulings, especially those of the Federal Court of Justice and the Federal Constitutional Court.
Practical relevance and examples
Comparison portals and marketplaces
On online marketplaces and comparison portals (e.g., for travel services, insurance, banks), ranking determines visibility and, thus, business opportunities. Special legal transparency requirements apply here, for example, under § 2 para. 2 Price Indication Ordinance (PAngV) and the relevant EU directives.
Review and employer-rating portals
Employer-review portals, as well as doctor or restaurant reviews, carry significant legal implications regarding ranking. Both data protection and personal rights of listed individuals and companies must be protected.
Search engines and algorithmic rankings
Providers of search engines must comply with comprehensive EU-level (DSA, competition protection directives) and national requirements for transparency, fairness, and the protection of personal data.
Summary
ranking from a legal perspective describes the ordered placement of content, companies, or individuals according to certain, sometimes algorithmically determined, criteria. Classifying ranking as a commercial practice brings with it numerous regulatory requirements, particularly regarding transparency duties, avoidance of misleading information and covert advertising, protection of personal data, and protection against discrimination or defamatory criticism. National and European laws—especially UWG, GDPR, BGB, and DSA—create a legal regulatory framework that is continuously evolving and adapting to the digital world of work and life. Thus, ranking is a central element of regulatory oversight in the digital age.
Frequently asked questions
Must the criteria for selection in a ranking be disclosed?
In a legal context, disclosure of the selection criteria for a ranking is generally subject to the principle of transparency and, where applicable, to specific statutory provisions. According to case law and Art. 5 lit. a of the Digital Services Act (DSA) of the European Union, there is a particular obligation for online platforms and comparison portals to disclose the main parameters that influence the ranking. Consumers should be able to understand why certain products, services, or content are ranked higher or lower. This includes listing all relevant factors such as price, user reviews, recency, or paid placements, as well as their weighting, insofar as this is technically possible and reasonable. For public tenders or procurement procedures, due to the prohibition of discrimination and for reasons of transparency, there is generally an obligation to publish the selection criteria and their weighting in advance. The specific form of the disclosure obligation can depend on the application context of the ranking, the industry, and specific legal requirements.
May rankings be influenced by payments?
The core legal principle provides that influencing rankings by payments (so-called “paid rankings” or “paid listings”) is permitted as long as such influence is clearly and transparently indicated as advertising or paid placement. According to § 5a para. 6 UWG (Act Against Unfair Competition) and Art. 26 DSA, disguising or misleading practices through undisclosed paid placements are not allowed. Platform operators and website providers must disclose when the order of listed results is influenced by financial compensation. Violations may be prosecuted by authorities as administrative offenses and subject to fines. In certain regulated markets, such as financial or pharmaceutical products, there are further requirements which may even prohibit or severely restrict paid prioritization for consumer protection purposes.
How far does liability extend for incorrect or misleading rankings?
Legal liability for incorrect or misleading rankings is regulated, among others, in competition law, civil law, and, if applicable, press law. Operators of rankings are liable under certain circumstances if economic disadvantages or reputational damage occur for affected parties as a result of a published ranking. According to the UWG, an incorrect or manipulated ranking can be classified as anti-competitive deception if the order does not withstand objective scrutiny or if key corrections or facts are withheld. In addition to injunctions, claims for damages may also be asserted, especially if it can be proven that a financial loss has occurred as a result of a faulty ranking. Press-law claims such as retraction or rebuttal can also be relevant, depending on the nature and effect of the ranking.
Can affected individuals take action against a ranking?
Individuals who feel disadvantaged, misrepresented, or defamed by a ranking have various legal options. First, according to the general right of personality (§§ 823, 1004 BGB), competition law (UWG), as well as media or press law, they can take action against the publication of specific ranking lists. In particular, claims exist for injunction, retraction, correction, and, if necessary, damages. They may also initiate civil proceedings to have a ranking removed or corrected under certain conditions. With regard to consumer protection or review portals, affected individuals can also contact supervisory authorities, arbitration bodies, or trade associations to seek review and possible sanctions or changes.
Are there data protection requirements for creating rankings?
When creating rankings based on personal data, the provisions of the General Data Protection Regulation (GDPR) apply. Accordingly, rankings that process personal data may only be created on a lawful basis. Relevant aspects include transparency, data minimization, and purpose limitation. The information obligations according to Art. 13, 14 GDPR must be observed; affected individuals have the right to access and, where appropriate, erasure or rectification (Art. 16-18 GDPR). If automated decision-making is used, such as by algorithms, Article 22 GDPR also applies, giving affected individuals the right to human intervention in assessment processes. In addition, the principle of data security (Art. 32 GDPR) must be ensured to prevent misuse or unauthorized access.
What special legal requirements apply to rankings in the public sector?
Rankings used in the public sector—for example, in the allocation of study places, research funding, or public contracts—are subject to stricter legal requirements. In addition to budgetary and procurement law provisions, constitutional principles such as equal treatment (Art. 3 GG) and prohibition of arbitrariness apply. The determination of the ranking order must be transparent, comprehensible, and non-discriminatory. All selection and evaluation criteria must be disclosed in a timely manner—usually in the call for proposals or announcement. The results of the ranking must be documented and reviewable in case of dispute. Legal remedies such as objection or legal action ensure verifiability. Violations of these requirements may result in the annulment of the entire selection process or repetition of the evaluation.
