More plaintiffs in Yelp case

You might recall that a Long Beach veterinary hospital started this off, and since then a number of businesses, including a few other local ones, have come forward, accusing the review site of extortion and fraudulent business practices. The basic allegation is that Yelp's sales reps offer to hide negative reviews if the business buys an ad. "Yelp's practices are extortionate and especially harmful to small businesses, such as our clients, who are particularly vulnerable to reviews posted on the site," said attorney Jared H. Beck. Yelp has denied any wrongdoing. Among the other plaintiffs are Le Petite Retreat Day Spa in L.A., Wag My Tail in Tejunga, Celibre in Torrance, and Mermaids Cruise in SF. From the WSJ:

Legally the matter is likely to hinge on whether this behavior constitutes a form of extortion. Yelp contends they are in fact behaving legitimately, and the plaintiffs are misunderstanding how a standard Yelp "review filter" system works. (This overlaps some of the same issues being hashed out in a lawsuit brought against Variety by the maker of film Iron Cross--he bought a $400,000 promotional package in the industry paper during the Oscars runup only to have one of the publication's critics excoriate the film.)

Even in the best of circumstances, I doubt these online review sites are a reliable measurement for much of anything. They attract experiences in the extreme - usually negative ones - that may or may not be legitimate. Businesses respond by arranging for services (and friends) to post phony raves. The upshot is a mish-mash of positive and negative comments that often leave folks more confused than informed. Here's the lawsuit.