Yelp is a popular interactive website allowing its users to create and access reviews of local businesses and services. The site now faces serious accusations of unfair business practices.
After Yelp! received some bad press for what many believe to be shady advertising practices, a class action lawsuit was filed yesterday in a California federal court. According to a press release posted on the Yelp Class Action Website:
"The lawsuit alleges that Yelp runs an extortion scheme in which the company’s employees call businesses demanding monthly payments, in the guise of 'advertising contracts,' in exchange for removing or modifying negative reviews appearing on the website."I first learned of the lawsuit via this post by Bradford Schmidt.