Yelp Hit with Class Action Lawsuit for Alleged Extortion
by Robert Quigley | 4:10 pm, February 24th
Crowdsourced review site Yelp lets users give one- to five-star ratings to restaurants and other services. Since its launch in 2004, it been dogged by accusations of extortion. Some businesses dissatisfied with Yelp have charged the company with all but offering to take down negative reviews in exchange for advertising sales — and even taking down positive reviews to exact revenge on local businesses that refuse to buy ads.
Tough accusations, clearly, but up to this point, they’ve been just that: accusations. Now, though, one California animal hospital has taken it to the next level: they’ve filed a class action lawsuit against Yelp, alleging that the company tried to shake them down for $300 a month in exchange for the removal of a negative review.
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