Luxe Life

Yelp Controversy: Online Rating System in Question

By Kimberly Castro

Posted: March 9, 2009

Yelp is one of my favorite user review websites. Because it attracts thousands of aficionados of food and drink, I find it especially useful when I'm thirsty for a new restaurant in my area. Contributing users often write thoughtful, prolific reviews about a wide range of local businesses, from hairstylists to mechanics. And it's growing at a brisk pace: Yelp, founded in 2004, had 6.8 million unique visits in January, up from 3 million uniques a year earlier, according to comScore. Its two main competitors, Yahoo Local and CitySearch, boasted twice as many uniques but grew at a much slower rate.

With such popularity, and thousands of local businesses gaining from Yelp's positive and negative reviews, it was surprising to see a lengthy article last week by the East Bay Express, accusing the San Francisco-based website of hiding or removing negative customer reviews in exchange for $300 monthly advertising campaigns. The article cited several local restaurateurs—some anonymous because they felt "threatened by Yelp's power to harm their business"—who refused the offer and then saw negative reviews become more visible or positive ones disappear altogether.

Yelp cofounder and chief executive Jeremy Stoppelman—who also addresses the controversy on Twitter—defends his company on the site's blog from the accusations: "As we've said many-a-time we do not do this and you don't have to take my word for it." Stoppelman provides an example of a sponsored ad that shows a glowing five-star review but with negative reviews beneath it. As for those vanishing positive reviews, Yelp says it often takes out fake-sounding ones: "Since 2006 we've had an automated system designed to protect against untrustworthy reviews, such as those written by an employee, business owner, or perhaps an ex-employee with a bone to pick," Stoppelman writes in a January 28 post. "Having this system means that certain reviews disappear from (or return to) a business' page from time to time."

Regardless of the accusations against Yelp, I'll continue to use the site. I normally don't look at the star ranking when determining what restaurant or business to use anyway; I always click on the "most reviewed." Even though I may see a five-star restaurant with one superlative review, I put more trust in a three- or four-star ranking with 250 reviews.

Ignorance Foodie!

I am also restaurant owner who also experienced good and bad reviews. One day I happened to be at the restuarant when I witness an unhappy customer, I comp their meal and tried to get their feed backs. After talking the particular customers, found out they had no clues about the food. I came home told my husband how this customers said food was bad but she has no ideas that she had ordered the wrong thing and thinking it was something else. My husband looked up on Yelp and sure enough they wrote a 3 pages long bad review about my restaurant rating one star! Strangely, this one customer barely can form a sentence to tell my why he did not like the food, but able to write in details about his experience. People should not be able to write about businesses negatively when they have no idea or background to justify what they are saying.

I think Yelp is a bad thing to have!

Thoa Nguyen of WA @ Nov 19, 2009 11:22:11 AM

Yelp lacks transparency

Dawn, the "elite" said, "As for 'Scouts,' etc... Yelp has been very transparent on how that works."

Actually, they only admitted that scouts exist after being caught in a lie. Yelp is not transparent, and therein lies the major problem with their site. Transparency is a must in today's business environment, and that is why yelp is struggling to repair its horrible reputation.

They refuse to provide an explanation for reviews that have been removed, they refuse to explain their "algorithm", even in laymen terms, and they refuse to change their anti-business sentiment. It isn't just business owners that are upset, as they receive plenty of negative reviews from their own yelpers, including some elite. Yelp is in serious trouble.

blogorama of CA @ Apr 25, 2009 18:42:01 PM

Yelpers need to take off the blinders please

Since when are small business owners your enemy? We are the foundation of your community, we employ your sons and daughters, your retired grandfather, and you think that just because Yelp is being criticized, called to the carpet that this is some master plan to censor you or that we, the small businesses are just whining? Not true. This is about fairness and public practices. Yelp deceives the public, and “yes” Yelper fans, they are deceiving you as well.

This may come as a surprise to those that love to post reviews on Yelp but you ARE being censored and deceived and you should be as upset as the small businesses you seem to so eagerly like to put down. Their CEO claims that we small business people, we just don’t “get” Yelp, we are not savvy to the internet, simply not true. My partner is actually a former Microsoftie, writes code, creates websites, is an internet guru. We are a mostly web driven business so we DO “get it” when it comes to the web. 90% of our clients find us on the web.

As a small business person in Seattle, Washington I am fortunately the benefactor of all good reviews on Yelp with the exception on one 3 star review which I still found helpful. I have 2 5 star reviews written by 2 elites! Which according to Yelp is a really good thing. That said, don’t think for a minute that your reviews are not censored. The fact that Yelpers write reviews that never get posted, even though they are perfectly legit, is a form of censorship. I started out with 12, 5 star reviews, and a few months ago got one bad (bogus) review. "Ok" I can deal with that but when I refused to pay to be a sponsor, suddenly that BAD, outdated review becomes the billboard review on my review page, the very top. Good reviews have now dwindled down from 12 good reviews to 9 good reviews. Once again I get call again to be a sponsor from Yelp. I politely decline, feeling like a hostage and that their promise to move the bad review if I paid was extortion, the thought of paying felt worse than the review. My reviews dwindle down to 8, 5 star reviews, the outdated one bad review still at the top.

Finally I write Yelp a letter, mail it, sprinkled it with some legalize and a week later, the bad review is removed, as it should have been because it violated all their policies which they seem to ignore. But my 5 stare reviews are still dwindling, now down to 7 reviews. With each refusal to be a paid sponsor for Yelp my stars shine a little less on Yelp. And perhaps even your review Yelper fan has been removed. How is that an honest review page when Yelp is stacking the deck? Good reviews are not always posted and obviously at times even removed. So in a way, you, the Yelper are censored and I the small business person am being cheated also. And by the way, Yelp IS a business too so if you really want to “stick it to us”, the small business community, Yelp should not be excluded

PupsUP of WA @ Mar 31, 2009 21:58:44 PM

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Luxe Life

Luxury is no longer the sole province of the elite. Upscale goods and services now target a much broader market. Kimberly Castro, deputy business editor of U.S.News & World Report, takes a look at the luxe life, from fine wines and cars to high-end real estate and wealth management. Though no elitist, Kim does admit a fondness for a bold bottle of Scout's Honor from Venge Vineyards and satiating her wanderlust in Europe.

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