FEBRUARY 25, 2009

No More Yelp For Me

One of the reasons I love social media is because the whole philosophy of it is built on honesty and transparency. Social networks, blogs, user-generated content - this stuff is compelling because, ideally, it is the reflection of a community of peers, each speaking his or her mind honestly and collaboratively. One example I keep coming back to is my neighborhood listserv- that most basic of Web 2.0 tools. I know that a query I post on my listserv will be answered with helpful and honest answers by similarly-situated folks who have at times faced the same need for a roofer, or a decent dry-cleaner, or a dog-walker.  I may not agree with every opinion expressed on the listserv, but I trust the mechanism for getting those opinions posted, and believe that the motivations behind the postings are pure.

Last week, Corey circulated a link to an article that I found very disturbing, called Yelp and the Business of Extortion 2.0, by Kathleen Richards. It’s a long article, and I am not going to try to summarize it here - I’d urge you to read it yourself.  Richards’ main point is that Yelp - a site that describes itself as “the ultimate city guide that taps into the community’s voice and reveals honest and current insights on local businesses and services on everything from martinis to mechanics” - is actually in the business of manipulating user reviews in order to extract money from the businesses being reviewed. Richards alleges that Yelp sales staffers have repeatedly called businesses offering to delete negative comments in exchange for payment. Other “shady” Yelp tactics include ranking negative comments higher in order to pressure businesses to pay to have them removed, and actually creating negative comments in order to open the door for a sales pitch for advertising.

This is extremely troubling.  As Richards writes, “If Yelp indeed suppresses honest reviews in exchange for its advertisers’ money, it is cheating users who expect genuine consumer feedback. Conversely, if Yelp demands payment to remove even dishonest reviews, then advertisers are being cheated.”

For the record, Yelp denies these claims - check out these two posts on Yelp’s blog.

Time will tell whether Yelp was unfairly targeted, or whether these allegations are true. Unfortunately, for me, the damage has been done. I will never consult Yelp again - my confidence in that community has been shaken beyond repair. Trust and confidence are hard won and easily lost - even more so in the world of social media, where transparency is the foundation upon which it is all laid.