Thursday, March 18, 2010

Yelp lawsuit widens: From Washington to Chicago to L.A., plaintiffs charge extortion

Posted by Chuck Strouse on Thu, Mar 18, 2010 at 10:05 AM

click to enlarge yelp.jpg

Nine companies have joined the proposed class-action lawsuit against Yelp, the San Francisco-based Internet giant, attorneys in Miami and California announced yesterday morning.

The

new plaintiffs are located everywhere from Tujunga, California, to

Washington, D.C. They include businesses ranging from a sofa outlet to

a bakery to the heart of Yelp's business, several restaurants.

All allege that Yelp,

a Web site that purports to offer public reviews of all kinds of

concerns, engaged in extortion by attempting to sell them ads and

offering  to erase bad reviews in exchange. In some cases, negative

reviews were even added -- and strong-arm techniques were employed, the

plaintiffs say.

"Since filing the complaint we have been

inundated with calls and e-mails from small businesses around the

country," says Jared Beck, the Miami attorney representing the

plaintiffs. 'Many of them asked us what they can do to actively stand

up and join the fight against Yelp."

The

original case was filed by a California veterinarian, Gregory Perrault,

against Yelp. His attorneys believe the company bullies patrons using

not only a paid advertising staff, but an "elite' group of free

reviewers.

Among the new plaintiffs in the case are Astro

Appliance Service of San Carlos, California, Le Petite Retreat of Los

Angeles, Scion Restaurant of Washington D.C., and Bleeding Heart Bakery

of Chicago.

The company has hired attorneys, Michael Rhodes and

Sarah Boot, to defend itself. Yelp acknowledges that in some cases, bad

reviews have been removed from the Web site by an "algorithm." The

company, they say, offers a great public service by bypassing

conventional reviewers.

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