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Miami Law Firm Joins Class Action Suit Against Yelp
Class Action | 2010/02/24 10:43

To loyal users, Yelp.com is a helpful way to find and share reviews of local businesses, but some business owners claim that the website's business practices represent something closer to an extortion scheme.

Miami-based law firm Beck & Lee has joined with a San Diego firm to file a class action suit against the company, according to Mashable. The plaintiff in the suit, a Long Beach Veternary Hospital claims it contacted Yelp to see if it could delete a bad review. At first the representative refused, but then offered to hide or delete the review for about $300 a month.

The East Bay Express ran a story last year claiming that Yelp was essentially "the business of extortion 2.0."

During interviews with dozens of business owners over a span of several months, six people told this newspaper that Yelp sales representatives promised to move or remove negative reviews if their business would advertise. In another six instances, positive reviews disappeared -- or negative ones appeared -- after owners declined to advertise.

Because they were often asked to advertise soon after receiving negative reviews, many of these business owners believe Yelp employees use such reviews as sales leads. Several, including John, even suspect Yelp employees of writing them. Indeed, Yelp does pay some employees to write reviews of businesses that are solicited for advertising. And in at least one documented instance, a business owner who refused to advertise subsequently received a negative review from a Yelp employee.

Yelp immediately denied any wrong doing and claimed the story was inaccurate.

"While we haven't seen the suit yet, anyone can file one, and since the allegations are false we will dispute them aggressively," a Yelp representative tells Mashable regarding the latest suit.



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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
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