Appeals court says Yelp’s ad sales tactics don’t extort small businesses

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Robyn Lee On Tuesday, a California appeals court ruled that Yelp’s ad sales strategies do not extort small businesses and merely amount to “hard bargaining” by the company. Yelp lets anyone review a business, and businesses can’t opt out of being reviewed. So when Yelp’s ad sales team began calling around asking companies to buy advertising in exchange for displaying good reviews more prominently, some storefronts cried foul. In 2010, four small business owners banded together to sue Yelp for extortion after they refused to buy advertising from Yelp and allegedly found that bad reviews were displayed more prominently. Two of the business owners also alleged that Yelp authored negative reviews to induce them to advertise or in retaliation after the business declined to buy advertising. Read 8 remaining paragraphs | Comments

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Appeals court says Yelp’s ad sales tactics don’t extort small businesses

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