Yelp: the FTC will not penalize us for assessment complaints
Yelp maintains that it does not recreation the critiques on its website or attempt to extort companies that refuse to pay for advertisements. The truth is, it is simply revealed a weblog submit to air that the Federal Commerce Fee has completed a yr-lengthy deep inquiry into its enterprise practices and has chosen to not take any motion towards the web site. Yelp even claims that is the second time the FTC has investigated the corporate and completed with out penalizing it in any method. A part of the weblog submit reads:
The FTC seemed into our suggestion software program, what we are saying to companies about it, what our salespeople say about our promoting packages, and the way we make sure that our staff will not be capable of manipulate the scores and critiques that we show on our platform. After almost a yr of scrutiny, the FTC determined to shut its investigation with out taking additional motion.
As you may know, there have been many complaints towards the house to crowd-sourced evaluations for eating places and different native companies for years. When you search “boycott Yelp” on Google, you will see a variety of companies campaigning towards the service for allegedly manipulating evaluations, refusing to take away pretend ones, and demanding cash from them, amongst different issues. In response to the Wall Road Journal, the FTC acquired as many as 2,000 stories towards Yelp citing the shady practices listed above between 2008 and 2014.
The corporate says that quantity’s fairly insignificant “particularly when seen in context of the tens of tens of millions of critiques” on its web site. It is unclear, although, if the fee dismissed the complaints towards the service, as a result of it has discovered that Yelp actually did not do something fallacious, or if 2,000 complaints are simply too few in comparison with the sheer quantity of revealed critiques. Along with surviving FTC investigations with out getting any penalty, Yelp has additionally escaped a lawsuit (itemizing comparable complaints towards its practices) unscathed in late 2014.