3.18.2010

New Media is not Immune to Good Ol' Fashion Extortion

Courtesy of Emmie Q.:

Article: Yelp and the Business of Extortion 2.0

The "extortion" allegations against Yelp.com include: asking businesses to pay money in exchange for taking down bad reviews, asking business to advertise on Yelp in exchange for taking down bad reviews, asking businesses to pay money in exchange for keeping the good reviews up...etc.

If true, the businesses may have, at best, unfair business type of legal claims against Yelp, but the cases will turn on whether Yelp has violated its own Terms of Service.

Yelp's COO offered at least one explanation for the perception of their sales' reps actions as extortionary: overeagerness in pitching businesses to advertise with Yelp.

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