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Yelp.com Stands Accused of Acting Like a "Modern-Day Mafia"

34 points| vaksel | 16 years ago |browardpalmbeach.com | reply

19 comments

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[+] nfnaaron|16 years ago|reply
Every business has good and bad interactions with customers. For most businesses the bad ones are unfortunate but isolated cases. For those where it's a pattern, they'll eventually lose enough business that they'll change or die.

What yelp has done is to artificially magnify the effect of an individual complaint. Most people don't bother to write publicly one way or the other, and (I think) people with a negative experience are more likely to complain publicly.

The effect of yelp is "world changing" in some sense; they make it easier for perfectly good businesses to go out of business. Not really what I'd want my life's work to be, but to each his own, I guess.

[+] invisible|16 years ago|reply
It's difficult to justify that perfectly good businesses can go out of business over Yelp (at least outside of huge cities). I haven't ever typed "yelp" into my browser (or found it through google search) and yet I'm a technology-oriented guy. Maybe it's where I live?

Whatever it is, I think word-of-mouth is not a case for suing unless it is artificially created. I don't know how many salespeople at Yelp carried the "extortion" sales pitch, but if it was more than a few individuals I think they do have grounds to sue. Comparing this to "mafia" is ridiculous though and truly shouldn't be publicized by any news outlet.

[+] emmett|16 years ago|reply
Yelp can also put bad businesses out of business, and does. And it can make an already good business a success, which it also does.

What evidence is there that they change the world net negative, rather than net positive? My experience with Yelp has been great: it has encouraged me to explore much more widely which restaurants I attend.

[+] iamdave|16 years ago|reply
And I'm supposed to let Facebook connect my profile to this site with it's OpenGraph?
[+] rhettinger|16 years ago|reply
Unlike many lawsuits, this one is a testable hypothesis. It is knowable whether favorable reviews disappeared, whether an algorithm or person triggered the disappearance, and whether this occurred after a sales-rep made contact. The phone logs, syslogs, and code repositories should reveal the truth in this case.
[+] derwiki|16 years ago|reply
I see more "People Love us on Yelp" stickers in a 10 minute walk around SoMa than the 10 people who have joined this lawsuit. What's browardpalmbeach.com anyway? This article is just an echo of the hundreds of other articles from more reputable sources about this topic.
[+] hugh3|16 years ago|reply
This one has allegations I haven't seen before. I've heard that yelp offers to rearrange reviews or remove one or two bad ones if you buy advertising, which sounds a little dodgy. I've never heard of it threatening to remove good reviews if you don't buy advertising. I'm more skeptical of that one.
[+] rmorrison|16 years ago|reply
The company, which has yet to turn a profit despite astounding popularity

Really? How is this possible?

[+] AlexBlom|16 years ago|reply
It's a tech startup silly. Are you suggesting these companies focus on making money??????

What the hell are you smoking!!!

*sarcasm

[+] sliverstorm|16 years ago|reply
They obviously haven't figured out how to effectively monetize the site, which IMHO makes accusations that they are trying to get companies to 'subscribe' all the more plausible.