Why Is It Legal for Yelp to Manipulate What Reviews Show Up

This article first appeared on the LocalVox local marketing blog at: http://localvox.com/blog/yelp-court-ruling-determines-yelp-can-legally-suppress-whatever-reviews-it-chooses/

Last week there was a momentous Yelp lawsuit ruling in California that allows Yelp to dispense ratings and reviews as information technology so pleases. The key office of the court ruling in response to the lawsuit is not that the prosecution didn't bear witness its case that Yelp manipulated ratings and reviews to "extort" paid advertising from clients - merely that fifty-fifty if that had been proven, that Yelp has every right to practice and then.

Now based on my limited knowledge of the law, I think this Yelp lawsuit ruling may be the "right" conclusion, even though it'south not what I would like to see from the local search behemothic. As long equally Yelp makes no promises to the contrary in its terms of service and marketing, they can packet the content they ain any mode they similar (yes, they own the reviews y'all post).

There is some precedent from the F.T.C. in a letter to search companies that "if a social network were to stream recommended restaurants based on what a particular consumer's social contacts have enjoyed, it should conspicuously distinguish as advertising whatever information feeds included or prioritized based in whole or in part on payments from a 3rd party."

Seems darn close depending on how y'all determine whether you tin consider Yelp as streaming recommended restaurants based on social contacts preferences, which Yelp does in part. Additionally, Yelp would argue that it does in fact indicate the "paid for priority" reviews.

What Does the Yelp Lawsuit Ruling Mean for Consumers

For consumers, the lawsuit ruling is a potential threat to Yelp'south standing and trustworthiness. I say "potential" because information technology's of import to reiterate that no study or court case has come with whatsoever evidence that Yelp does in fact manipulate reviews. That said, the sheer number of reports regarding changes in ratings and reviews after not renewing the advertising package is disturbing and the plausibility of the activity is high given the economic touch on to Yelp. The New Yorker, however, thinks it is unlikely.

Ultimately though, whatsoever such behavior undermines the credibility of Yelp reviews to consumers. 88% of consumers trust online reviews equally much as personal recommendations, and that's upwards 9% year over year. If you tin pay to amend the presentation of seemingly organic reviews, you are deceiving consumers unless you lot make that clear.

If Yelp is willing to deny these lawsuit claims legally, I think they should besides put it in their terms of service and announce it publicly and market it vociferously. That's the right thing to do marketing-wise, even though it bring undue attending to an issue they want to sweep nether the rug. Notwithstanding, since this might open them up to liability such as the California instance, I recollect it's unlikely that they volition do so.

So if consumers ultimately care about the trustworthiness of the reviews, I call back it'south up to them to need it. And only some grassroots campaign will go there, and I merely don't come across that happening. The frustration I encounter is amongst local business organization owners rather than consumers.

What Does the Yelp Court Ruling Mean for Local Businesses

For local businesses, the Yelp lawsuit ruling is bad news. It specifically makes it clear that they have absolutely no claims, fifty-fifty if they tin can show the ratings were "manipulated." Yelp holds all the cards and information technology is not going away. Local businesses can demand Yelp transparency and honesty and try to go consumer awareness of the issue through a grassroots campaign banding together. If information technology's just a couple i-off businesses, information technology looks similar sour grapes.

Either fashion, the Yelp lawsuit ruling puts fifty-fifty more focus on managing and improving your social reputation. Here are 3 things you should be doing right at present:

1. Make sure yous accept social reputation management software and that's as simple to use as our Social Inbox.
2. Reply to every negative review. 33% of negative Yelp reviews turn positive when you answer to them.
3. Solicit customers for reviews. Employ your e-mail lists, social media and positive customer experiences to generate positive Yelp reviews.

For more than swell reading on managing your social reputation and Yelp, we recommend:

• How to Avert the Yelp Review Filter. Find out how to brand sure your customers reviews go far through to the front page. It's our nearly popular blog post nosotros accept every written.
• Online Social Reputation for Local Businesses. Great presentation that volition get you going.
• 8 Simple Tips to Become Google+ and Yelp Reviews. Great strategies to build more than positive reviews.

Need more aid? Ask our team at gethelp@localvox.com, on Twitter @localvox, or on Facebook.

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Source: https://www.linkedin.com/pulse/20140917131048-196257-yelp-lawsuit-ruling-determines-yelp-can-legally-suppress-any-reviews-it-chooses

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