Yelp to Business Owners: Don't Try to Game Our System Popular user-review site launches Consumer Alert system to crack down on companies paying for reviews.

By Jason Fell • Oct 18, 2012

Opinions expressed by Entrepreneur contributors are their own.

For business owners, having a page on popular user-review site Yelp can be a blessing or a nightmare. A page full of five-star reviews can help drive business. A page stocked with negative reviews, however, can turn potential customers away. To boost their ranking or bury negative ratings, some business owners have paid people for making positive reviews, and that's not playing by the rules, Yelp says.

In an attempt to put a stop to these fraudulent reviews, Yelp has announced a new "Customer Alert" system. A warning message will appear on business pages when Yelp believes that a company has paid for its reviews. One indicator that a business is engaging in this type of activity is if it has a large number of reviews submitted from the same Internet Protocol (IP) address, Yelp says.

Stamford, Conn.-based research firm Gartner predicts that by 2014 as much as 15 percent of reviews on social media sites could be paid-for fakes.

"Initially, nine businesses will have the consumer alert message posted on their profile page, but the company will be posting alerts like these on an on-going basis, as warranted," Yelp said in a blog post announcing the new system. The alert will be removed from the business's page after 90 days, unless Yelp detects "any renewed efforts to mislead consumers."

In general, business owners have had a love/hate relationship with managing Yelp reviews. Some companies have alleged that reviewers attempt to "extort" money or other services from them in exchange for not posting negative reviews. Yelp, which has denied the allegations, has also faced complaints that it offers businesses positive reviews in exchange for purchasing advertising on the site.

Do you think Yelp is a helpful tool for businesses? Let us know in the comments below.

Jason Fell

VP, Native Content

Jason Fell is the VP of Native Content, managing the Entrepreneur Partner Studio, which creates dynamic and compelling content for our partners. He previously served as Entrepreneur.com's managing editor and as the technology editor prior to that.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Most Popular

See all

Science & Technology

She Ditched Her Steady Job in Tech to Pursue Her Love of Food. Now She's a Food Network Champion and Celebrated Cookbook Author.

A self-taught vegan chef known for her sustainable cooking practices, Chef Priyanka Naik's journey from the tech world to the Food Network is a testament to the power of passion and perseverance. Hear her insights into how embracing your unique path can lead to entrepreneurial success.

By Emily Washcovick

Leadership

9 Productivity Tips That the 1% Know to Follow

Is your inner high-performer waiting to be unleashed? If so, here's what the 1% swear by for peak productivity.

By John Rampton

Devices

Save More Than 70 Percent on This iPad Pro

This refurbished iPad Pro comes with 32GB of storage space.

By Entrepreneur Store

Starting a Business

Ask Marc | Get Free Business Advice From the Co-Founder of Netflix

Get the answers to your most challenging business problems during our next Ask Marc, live Q&A, on 5/9/24 at 2 PM ET. You don't want to miss it—send in your questions now.

By Entrepreneur Staff

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

By The Staff of Entrepreneur Media, Inc.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

By Emiliano Jöcker