YELP CEO responds to class action lawsuit

I’ve been discussing the issue of online reviews, and in particular YELP in several articles this year, such as “no Sheriff in the Wild Wild ‘Net” and more recently about a class action lawsuit against YELP.

YELP’s CEO has responded to the lawsuit with his blog post. It does provide YELP’s perspective and emphasizes that the quality and fairness of the reviews is how they’ve built a large user base. Jeopardizing the integrity of that, he states, would negatively impact the company.

While that may be right, or may have been right before gaining 29 million users, he doesn’t address anything at all about their income and business model, other than referencing “no businesses that advertise on YELP have a perfect reputation”.

But, isn’t that where the issues lies? I suspect those businesses didn’t start off advertising when there were few users and great reviews. I believe the majority of those businesses advertised to get a more favorable review up top above a negative review…that seems to have only occurred after turning down an Ad deal from a YELP sales person.

Of course, I’m only speculating based on the range of multi-page articles I’ve read, several by investigative reporters. I could, of course, be as wrong as the YELP CEO contends all of these reports are wrong.

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One thought on “YELP CEO responds to class action lawsuit

  1. Yelp deleted my positive review I left for a company and when I asked that company if they knew my positive review had been deleted the company stated, “That’s funny, we just got a call for them to pay for Yelp’s services, which we said no to, and now they are deleting our positive reviews from regular clients!”
    I’m sorry, but that is not ethical business practice in my book, Yelp. I hope they get what is coming to them.

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