Thursday, February 25, 2010

Yelp Slapped with Class-Action Lawsuit

Posted By on Thu, Feb 25, 2010 at 12:36 PM

Did this user review site engage in practices tantamount to extortion? - KASZETA/FLICKR
  • kaszeta/Flickr
  • Did this user review site engage in practices tantamount to extortion?

A year ago the East Bay Express, an alternative newsweekly in the San Francisco Bay Area, went public with stinging accusations that user review site Yelp engaged in shady pressure tactics to remove or bury negative reviews for businesses that advertised or coughed up sponsorships. Now a lawsuit is alleging something eerily similar.

TechCrunch is reporting that law firms in San Diego and Miami have tag-teamed for a class action lawsuit against San Francisco-based Yelp, alleging unfair business practices. The plaintiff? A Southern California veterinary hospital that says it asked Yelp to delete a negative review, was refused and then allegedly received multiple queries by Yelp sales reps to cough up some $300 per month to make the bad review disappear (either bury it or delete it entirely).

Sound like an extortion scheme worthy of Tony Soprano? That's pretty much what the plaintiff is charging. In a statement, Yelp told TechCrunch the allegations were "demonstrably false" and promised to fight aggressively. The suit was filed Tuesday and is pending in the U.S. District Court for the Central District of California.

Related Content: Photos: Yelpers Yelp About Yelp at Molly's in Soulard (2/11/10)

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