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Yelp: Good or Bad for Business?

Amanda Cey | August 30, 2010

Yelp, as many of you know, is a user-generated website that allows people to write both negative or positive reviews for local restaurants, hotels, stores, nightlife scenes, and more. Users rate and leave comments about establishments for other consumers to review.

However, recent websites, like Yelp-Sucks and IHateYelp, have popped up in response to Yelp policies and reviews. These sites are used by angry business owners who have received negative feedback and complaints on Yelp, which has resulted in a loss of business. Many business owners have turned to Yelp for competitive reasons and are now frustrated with the site’s lax comment policies.

One major complaint is over the issue of negative reviews and how businesses can’t get rid of them. Another is that good reviews are often deleted from business pages by Yelp due to infrequent logging in by the owner. The site also allows users to review a business, even if they never used the service. Many business owners feel that they are not getting what they paid for, and that the site ultimately hurts their business.

Boris Levitt, owner of Renaissance Furniture Restoration, has actually sued Yelp for its “unfair and unethical conduct in promoting, marketing and advertising its website as maintaining unbiased reviews.” Levitt argues that the site is unlawful, and believes that Yelp has hurt his business. Yelp has had previous claims for similar issues in the past.

Do you think Yelp maintains its mission to promote companies in an unbiased fashion? How could Yelp change its policies to best serve business owners while providing consumers with truthful and relevant information?

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