Wednesday, February 24th, 2010
Yelp Hit With Class Action Lawsuit For Running An “Extortion Scheme”
Two law firms, Beck & Lee from Miami and The Weston Firm in San Diego, have filed a class action lawsuit in Los Angeles federal court alleging unfair business practices by local business review and rating website operator Yelp.
The plaintiff in the suit, a veterinary hospital in Long Beach, CA, is said to have requested that Yelp remove a negative review from the website, which was allegedly refused by the San Francisco startup, after which its sales representatives repeatedly contacted the hospital demanding payments of roughly $300 per month in exchange for hiding or deleting the review.
B & G Hardwood Flooring as for a long time we’ve had five, 5-star reviews on our Yelp. Then from a reviewer totally unknown to us (and we know all of our customers quite well), Yelp published a two star review and removed all the five star reviews. Another client of ours posted a five star review only to have it removed two days later. Now Yelp has called us saying they can improve our ratings if we purchase advertising from them. Some things never change.
Read more about Yelp’s practices at: http://yelp-sucks.com/