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Yelp Responds To Extortion Allegations


CEO says site is in the right despite lawsuit(s)

Last week, we wrote about a lawsuit that'd been filed against Yelp.  The suit alleged that Yelp representatives would sometimes offer to remove negative reviews if businesses would buy ads.  Now, the CEO of Yelp has fired back (several times, actually), but a second suit's been filed, too.

CEO Jeremy Stoppelman wrote in response, "These copy cat suits get filed in what is known as a 'race to the courthouse,' where lawyers jockey to be named the lead lawyer of the case and take the biggest share of legal fees; being among the first to file a suit increases the chance of being put in charge of the case."

Stoppelman also wrote with respect to what both suits have accused Yelp of doing, "[T]he allegations are false and easily refuted.  They are borne from a lack of understanding of how Yelp works to provide consumers with useful information about local businesses and protect users from fake, or shill, reviews."

It'll be probably be best for small businesses if what Stoppelman says turns out to be true.  If Yelp took money in exchange for burying bad reviews, this would favor companies with more money, but his version of events puts all establishments on equal footing.

As before, we'll see what happens.  Stoppelman has promised to keep everyone up to date.

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News Tags: Legal, Yelp
About the author:
Doug Caverly is a staff writer for SmallBusinessNewz.

Comments

Yea, right.

I hope Stoppelman will understand if I don't believe him.  Where there is smoke there is fire and in this case, there are at least two fires.

Bad company bad practive

 I knew a business in San Francisco had to pay a few thousand dollars to get ride of bad reviews. The owner first found some bad reviews that has no ground. So some good customers wrote some good reviews but soon not shown up there but the bad reviews kept showing up. All of a sudden, there were a few cancel orders (said due to the bad reviews). The owner panic and agreed to pay the company to put ad into Yelp and  remove the bad reviews.

Shill vs Service

Hey let's not forget about Google reviews. They open up an entire API for programmers to inject reviews from thier own websites into Google Maps.

I've been staring at one of my clients listings for the last 3 weeks. It has 10+ 1 Star ratings, when in reality the reviewers all provided 5+ star ratings. It's broken.

I would rather be able to pay someone to fix the problem to be honest. I have no idea why people thing an entirely autonomous and otherwise broken rating system which is wide open for corruption on the slip side (shills and computer bugs left unfixed) is any better.

I'm watching this case like a hawk. I am convinced that Yelp has every right to own the content on thier website and charge for it as they please. It's better than a rampant free-for all which is prone to substantially more corruption in a non-regulated style of directory review website if you ask me.

Ironically... these commentsw are broken when you try to reply to somebody too.. Maybe we should step back for a few years and fix everything before we start filing class action lawsuits.

Problem

I think the idea of these review type sites is great. In actual practice though, I think they fall short. My guess is that the majority of reviews will be negative because that's almost the only time someone is going to take the time to register, fill out the form, etc. As far as the extortion - I doubt that's their business model but when you have people on a performance based pay system and they can turn the screws to get a commission - they are going to do it. I hope they fix the system because as a consumer I enjoy having reviews to warn you from corrupt/irresponsible businesses. That being said the current systems is more about finding who has the least number of complaints. Just my opinion.

Extortion Allegations

I have to wonder about the motives here. This whole article stinks of the East Bay Express struggling to convince the readers, and themselves, that the Express still relevant in an age where more and more people get their restaurant and night club reviews online instead of from the local fishwrap

Bullied by Yelp

 We have a predominate salon in Los Angeles for the past 10 years and have been written up in over 60 magazines worldwide for being the “best of” and are on countless TV shows.   We did not know what Yelp was until 2009 nor did we care. When we looked at Yelp and noted many good reviews. Then we started getting calls to “sponsor”- a sponsor is when you willingly give money to sponsor an event or charity. Lets use the real term when it pertains to Yelp- "pay to play buy having your name come up first on the search site". We declined because in the past 9 years there has been no need to advertise on a search engine like Yelp to get our business. Then shortly after the decline a horrible review came on, then another two. We knew something was odd because the review referenced having their hair done by the owner during a time when the owner was out of the country filming. And one review that personally attacked the owner for his conduct outside of the business while he was working out at his gym.   I contacted Yelp to have the reviews removed based on the reviewer's violation of the Yelp's Terms of Conduct and reviewers numerous unfounded accusations and inaccurate statements.  The reviews were removed.  However, shortly after that another review came up that stated “several years ago I got my hair done at…”  Most all of our good reviews were gone and only 3 remain. So, we “sponsored” or should I say payed the extortionist for 3 months, good reviews returned however no increase in revenue from Yelpers patronizing the business. Then as any smart business owner seeing no increased revenue we terminated the “sponsorship”. Just recently there is an update by the bad reviewer stating blatant lies & last week a scathing 5k plus review.  Moreover, if you look at the stats on the "business trends page views" it has gone from sponsorship period of 148 clicks to 45 clicks, please note prior to sponsorship we were at 177 clicks per page.  We just find this fishy.   Our City Search is vastly different than Yelp's, although we understand  our business cannot satisfy everyone and there will be disgruntled clients that need to vent, Yelp's conduct is unacceptable.  


We confider Yelp the modern day SCHOOL YARD BULLY.   Its amazing how our business can be selected as on of the "Best Top Ten Cutters in the World" by ELLE UK magazine, "Best Salon" by ALLURE magazine 2007 & 2009 (voted by the subscribers), "Top Ten Amazing Blowouts" by INSTYLE, however on Yelp we only have 6 reviews.

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