Tag Yelp Lawsuit

A ruling from a Virginia Court of Appeals has rendered anonymous reviews unprotected, at least in Virginia. The popular online review website Yelp is at the center of litigation regarding the legitimacy of anonymous reviews. On one side is Yelp, whose terms of service explicitly ban users from posting faked reviews that are negative or positive. On the other side are the businesses hurt by these reviews.

This landmark case will shape the landscape of online reviews for some time to come. The plaintiff’s case seems to mirror the plight of so many businesses with reputation and image problems. Yelp uses an automated system to deal with spoofed reviews, which it claims is capable of dealing with these fakes. Yet the fact remains that fake reviews have become an industry in and of themselves. While this court ruling does little to improve these conditions, it does set the precedent for future cases.

In a new article for Search Engine Journal, Our CEO Pierre Zarokian explores the ruling and asks the question: will online reviews ever be safe again? Or have the courts made a terrible mistake, relying on outdated case law to render a verdict with far-reaching consequences?

A class action lawsuit filed in California seeks to get Yelpers paid for reviews. The lawsuit claims that Yelp runs a cult like environment and instead of paying the reviewers, it offers them badges,  titles such as “Elite”, praise,  free liquor and food, and free promotional Yelp attire, such as red panties with ‘Make Me Yelp!’

We spoke to one of the plaintiffs, Lilly Jueng, who is an Elite reviewer. She claimed that Yelp was very restrictive of what she was able to post and cancelled her account when they were not happy with a review that she left.  “Reviewers should be able to post any review they want on any public company without restrictions,” said Jueng.

The plaintiffs also claim that yelp often hosted parties for Elite reviewers and the Yelpers were expected to leave positive reviews for the restaurant hosting the event.

We also spoke to Daniel Bernath, one of the lead attorneys on the case. He stated: “A worker is not permitted to waive their rights to wages under the federal Fair Standards Labor Act.” Mr. Bernath feels that they have real good chance of winning the case based on current labor laws. He stated that it does not matter that some people may think this lawsuit is ridiculous, because the laws are build in a way that supports their claims. “The trial court judge will read the complaint and will apply the law. It is a settled law and we are confident that our clients will get paid for their labors.”

Our CEO, Pierre Zarokian, has written a more detailed article for  Search Engine Watch .